Employment Contracts & Workplace Policies

The purpose of an employment contract is to clearly set out and protect the employer and employee relationship. It creates an instrument that can be referred to and relied upon by the parties if one fails to adhere to their obligations under the contract. It should clearly state the employee’s employment type (full-time, part-time or casual), their gross pay (salary or hourly pay rate) and set out the other benefits and requirements of the employment relationship.

A strong contract should also contain clauses to protect a business’s commercial interests. For example, clearly setting out resignation notice requirements from employees to allow the business time to find a suitable replacement and minimise workplace disruption. Another example is including intellectual property and non-compete/post-termination restraint clauses to prevent ex-employees from poaching clients or taking confidential business information and any intellectual property over to a competitor.

Employment contracts should be updated as frequently as the nature of the employee’s work/duties being performed change or whenever the salary structure/terms change.

Employers should ensure any proposed changes to contracts are mutually agreed upon and signed by both parties before any changes take effect.