It is likely during your working life you have read and signed an employment contract. An employment contract sets out the terms and conditions between an employer and employee. A well written contract allows both parties to mutually agree to the terms set out and clearly defines expectations, rights and responsibilities of each party. Poorly written contracts on the other hand can potentially result in costly and time-consuming disputes.
Benefits of Well Written Employment Contracts
- Ground rules are set between the employer and employee, minimising potential conflict over different expectations;
- Employees have better job security and certainty surrounding any benefits (e.g. bonuses or incentives)
- Employers are protected from certain risks such as intellectual property or confidentiality breaches
- Compliance to legislative requirements, including the Fair Work Act 2009, National Employment Standards or any underpinning Award
Additionally, it is important to note that the employment contract must be adhered to. If the contract has been breached, legal ramifications may occur – so it is important to ensure that there is no ambiguity and that both employer and employee fully understand their rights and responsibilities set out in the contract of employment.
What Do Well Written Employment Contracts Contain?
- Salary, job description, hourly rates, overtime and employee benefits;
- Overpayment recovery from an employee in the event of termination;
- Communicating performance and role expectations;
- A minimum required period of notice of resignation by staff;
- Clauses protecting the employer’s confidential information and intellectual property;
- Enforceable non-compete or restraint of trade clauses to protect an employer’s legitimate commercial interests, other employees as well as business customers.
Need some assistance writing an employment contract, or looking to make some adjustments? Contact one of our HR consultants today!