All employees should sign an employment agreement

A written employment agreement is used to outline the wages and conditions for employees and will include information such as employer and employee details, employment status (full time, part time or casual), start and end dates of the contract, pay rate, hours of work, job duties, bonuses and performance standards.

The main advantage of an employment agreement is that it can include additional contract terms that specifically protect the employer’s business.

For example:

• A requirement for the employee to protect, and not exploit, the employer’s confidential information – including customer lists, manuals, systems, etc.
• Restraint of trade. This prevents the employee from leaving the employer and immediately starting a new business in competition.
• Requirements for the employer to hold a membership, qualification, or licence.
• An agreement that the employer owns any intellectual property the employee develops as part of their employment.

Implementation process:

1.  Review the National Employment Standards (NES) – Which sets out the ten minimum employment entitlements that have to be provided to all employees.
2. Consider what contract terms need to be included in employee employment agreements to protect the employer’s business.
3. Draft employment agreements for each employee – either though a solicitor or purchased from an online legal document’s provider.
4. Ensure each employee signs an employment agreement before commencing employment.