10 Things You Must Include in All Your Employment Contracts

By Charles Power on July 20th, 2011

Dear Reader,

Employment contracts are the basis of your business – they’re just too important to leave to chance.

If you don’t scrutinise every line of your contracts to make sure they’re legally correct, any employee could challenge them, take you to court and win.

And that’s not all – you could also find yourself facing hefty fines…

This is an important issue – so today, Charles will go over 10 things you absolutely must include in your employment contracts.

But before you check out his article, there’s something I wanted to make sure you’re aware of…

On January 1st 2012, new national OHS laws are being introduced that will harmonise occupational health and safety legislation across Australia.

In short, that means there will be a whole lot of new health and safety laws you’ll have to adjust to.

This overhaul of Australia’s OHS laws is imminent – and it affects you directly.

If you’re at all uncertain about how this huge change to Australia’s OHS legislation will impact on you and your business, click here.

You’ll discover a simple way to keep up-to-date with the proposed new OHS laws – and make sure you stay on top of all your new responsibilities…

Until next time…

Claire Berry

Claire Berry
Workplace Bulletin

And now over to our editor-in-chief Charles Power…

10 things you must include in all your employment contracts
By Charles Power
Editor-in-Chief, Employment Law Practical Handbook

Here are 10 things you must include in all of your employment contracts:

  1. The name of the employer
  2. The title of the job to be performed by the employee
  3. The commencement date of employment
  4. The basis of the employment (i.e. is it ongoing, fixed-term or casual?)
  5. The amount of the employee’s remuneration and how it is made up.
  6. The amount of notice that is required to be given by both employer and employee to end the employment relationship.
  7. A provision clarifying the status of company policies (that is, are they part of the contract or things about which the employer has a discretion?).
  8. A provision to enable over-award payments (i.e. the amount representing the difference between the statutory minimum wage and the actual wage paid to the employee) to go towards non-wage monetary entitlements, e.g. overtime or penalties.
  9. Acknowledgement that the employee has a legal right to work in Australia.
  10. A provision dealing with the effect of changes to the employee’s role on the contract. For example, if the employee’s duties, reporting arrangements, remuneration or job location change, will the written contract still apply?

For more information on what should be included in your employment contracts, keep your eye out for your next Employment Law Practical Handbook update. It contains a fully updated version of chapter E1 Employment Contracts and it’s due on your desk shortly!

Not yet a subscriber to the handbook? Click here for more information.


Charles Power

Charles Power
Employment Law Practical Handbook

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