Employment Contract Templates & Employment Agreements
In today’s dynamic business environment, having a clear employment contract is more than just a formality—it’s a necessity. When you decide to hire a new employee, it’s crucial to establish the terms of employment right from the start. This not only sets clear expectations but also ensures that both the employer and the employee are protected under the Fair Work Act 2009 (Cth) and the National Employment Standards.
Understanding the employment contract
An employment contract is a legally binding agreement between an employer and an employee. It outlines the duties and responsibilities, job title, hours of work, rate of pay, and other essential terms and conditions set forth in the contract. Whether you’re a business hiring for full-time employment or seeking different employment types, having a comprehensive employment contract template can save time and ensure consistency.
Types of Employment Agreement Templates
– Full-Time Employment Agreement Template: Ideal for businesses looking to hire employees for an ongoing period of time, this template covers the number of hours expected to work, employee benefits, and other key terms.
– Part-Time Employment Agreement Template: Tailored for employees working fewer hours per week, this template ensures that both the employer and employee understand and agree to the terms set out in this agreement.
– Casual Employment Agreement Template: For businesses that need flexibility, this template is designed for employees working on an as-needed basis.
– Fixed Term Employment Agreement Template: When hiring for a specific project or a set period, this employment agreement template provides clarity on the terms and conditions set for the duration.
Key components of an employee contract
Every employment contract template should address the following:
Hours of Work: Clearly state the number of hours the employee will be expected to work, including any overtime provisions.
Applicable industry Award: Under the Fair Work Act 2009 (Cth) most employees are covered by an Award, it is essential to classify this so both parties have clarity around entitlements.
Superannuation: Detail the superannuation contributions and any other related benefits the employee is entitled to.
Termination of Employment: Specify the notice period, conditions under which the employment with the employer may be terminated, and any related terms.
Customising the details in your employment contract template
Each employment arrangement is customisable. Our templates are designed to accommodate the specific details of each individual employment scenario, such as job titles, wage agreements, and working hours. While the foundational clauses of the template remain consistent, there’s flexibility to input the particularities of every arrangement. It’s essential to ensure that all details align with the Fair Work guidelines and the National Employment Standards.
Frequently Asked Questions
Navigating the world of employment agreements can be complex. Whether you’re wondering about the difference between an independent contractor agreement and an employment contract or have questions about termination clauses, our FAQ section provides clarity.
1. What does “termination” mean in the context of an employment contract?
Termination refers to the end of an employment relationship between the employee and employer. An employer may terminate employment,provided it’s in line with the provisions set forth in the employment agreement and in accordance with the Fair Work Act 2009 (Cth). If any provision of this agreement regarding termination is found to be void or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect.
2. How are “hours of work” defined in the employment contract?
The “hours of work” provisions in the employment contract specify the number of hours an employee will be required to work. This can change over time based on the business’ needs and must be communicated directly to the employee. Any changes to the hours of work should be done with the consent of the employee and, in some cases, may require a modification to the agreement. Furthermore, any changes to an employee’s work hours should be managed in accordance with the Fair Work Act 2009 (Cth) and the employees’ industrial Award, if applicable.
3. What should I know about “termination of employment”?
Termination of employment can be initiated by either the employee or the employer. The employment agreement should clearly outline the grounds for termination, the notice period, and any other relevant terms. The employer is entitled to terminate the employment if the employee directly or indirectly breaches the agreement, fails to carry out the duties, or discloses confidential information in accordance with the Fair Work Act 2009 (Cth).
4. Can you explain “superannuation” in the context of the employment agreement?
Superannuation refers to the arrangements in place to provide the employee with funds for retirement. The employment agreement shall specify the rate at which superannuation is paid and any other related terms. It’s essential for the employee to understand that superannuation is a benefit provided in addition to their salary. The employee shall be eligible for superannuation as per the terms set in the agreement, and any changes to these terms must be communicated and agreed upon by both the employee and employer.
5. When would I use an independent contractor agreement instead of an employment agreement?
An independent contractor agreement is used when hiring someone to complete a specific task or project without the intention of establishing an ongoing employer-employee relationship. If you’re engaging someone for a one-off job or a project-based task, it’s recommended to investigate the use of an independent contractor agreement. This ensures clarity in terms of duties, payment, and other terms without the long-term commitments typically found in standard employment agreements. It is advisable to refer to the guidelines set by Fair Work or seek legal advice when distinguishing between whether to engage a worker as an independent contractor and an employee as this is a key area of dispute and organisations often confuse the two types of working arrangements.
6. Can the terms provided in an agreement be changed after signing?
Depending on the specific agreement, terms may be amendable. Agreements that contain a variation clause can be modified in accordance with the terms set out in that clause. In such cases, any changes generally require mutual consent from both the employer and the employee. Both parties should discuss, agree upon, and document any modifications to ensure clarity and prevent potential disputes related to the agreement.
7. What happens to the work products or outputs created by the employee during their tenure?
Any work product, output, or intellectual property created by the employee during their tenure typically becomes the property of the employer, as specified in the agreement. This ensures that businesses retain rights to the work produced in connection with their operations.
8. Do both parties need to sign the employment agreement?
Yes, both the employer and the employee need to sign the employment agreement to make it legally binding. A signed agreement confirms that both parties understand and agree to the terms and conditions set forth, ensuring clarity and mutual understanding.
9. Are there any provisions for free employment or internships in the agreement?
While the primary focus of the employment agreement is paid positions, provisions for free employment or internships can be included or addressed in separate agreements such as an Internship Deed. The employer may choose to offer internships or volunteer positions, but it’s crucial to ensure that the terms are clear, fair, and compliant with relevant laws.
Why Choose Business Kitz for your agreement template needs
Our team of experts has meticulously crafted each employment contract template to ensure compliance with Australian employment laws. From casual hires to full-time roles, our templates provide a comprehensive framework to aid in a smooth and prosperous relationship between an employer and employee.
Ready to hire? Get started with our templates
Embarking on a new hire journey? Ensure a smooth onboarding process with our range of employment contract templates. From setting clear expectations to defining the terms of employment, our templates provide a robust framework for any type of employment.
- Easy to use
Clear and comprehensive guidance notes.
Editable schedule and re-usable from employee to employee.
- Fair Work compliant
Regularly updated by our compliance team.
- Risks covered for casual employees
Australia’s highest quality agreement template covering key risks for casual employees.