A well-drafted employment agreement staff is vital for the stability of your business. Not having one puts the business at serious risk of customer defections and increased overheads in staff recruitment.
An employment agreement is not just about salary. It is a contract between an employer and employee that clearly defines the terms of employment and prevents misuse of confidential information and staff taking customers with them when they leave.
The agreement must also comply with National Employment Standards, the Fair Work Act and any applicable award. It should accommodate your policies concerning all the different types of leave to which employees are entitled and document the KPIs required to be met and the financial incentives offered when they are exceeded.
Where appropriate, the agreement should also specify that the employee may be required to work “reasonable additional hours” to fulfil the duties associated with their role.
It is good business sense to engage an experienced lawyer with employment law expertise to prepare or update a customised employment agreement for your organisation. Our lawyers have many years of experience in drafting employment agreements from small to large organisations.
Call today to discuss your requirements or email your current standard employment contract to us for an estimate of fees to prepare any recommended changes.
Our employment law team provides the following services:
- Review existing contracts of employment;
- Drafting new contracts for employment;
- Review and update policies and procedures;
- Enforcement of employment agreements;
- Independent contractor agreements;
- Non-compete (restraint of trade) covenants;
- Confidentiality covenants;
- Employment termination;
- Employment concerns for supervisors.
What is included in an Employment Agreement?
An employment agreement will generally include the following:
- Duration of the position
- Performance standards
- Remuneration components
- Competition Restraints
- Leave entitlements;
- Confidentiality and protection of customer lists etc.
- Specific conditions e.g. hours of work, annual holidays, superannuation etc.
Employment agreements are essential to the success of any business and the right advice is crucial.
Benefits of an Employment Agreement
An employment agreement clearly defines an employee’s responsibilities and expectations- and the remuneration that is payable if adequate performance is achieved- before they start in a position.
A term that non-award staff must “work as many hours as is necessary so as to perform the role and all assigned tasks” makes expectations very clear.
More information on Employment Agreement →
A business is entitled to protect its goodwill by preventing staff from dealing with its customers after the end of the period of service. On the other hand, a former employee can’t be prevented from earning a living and is generally entitled to compete with its former employer.
More information on Non-compete restraints →
Are your contractors really employees?
So you may be wondering, am I either an employee or contractor? Generally, an individual person paid mainly for their labour is an employee. This is the case even if the individual quotes an ABN. However, if the person operates through a company, trust or partnership, that entity is a contractor regardless of the basis of its remuneration.