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Understanding Employment Agreements: Key Elements, Common Mistakes, and Types

Discover the essentials of employment agreements, including minimum requirements, common mistakes, and important distinctions between employees and contractors. Learn about fixed-term contracts, casual employment, restraint of trade clauses, and trial periods. Understand the difference between contracts of service, collective agreements, and individual agreements. This guide provides valuable insights to ensure compliance and protect the rights of both employers and employees.

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Understanding Employment Agreements: Key Elements, Common Mistakes, and Types

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  1. Employment Agreements

  2. We will cover: Minimum requirements Common mistakes Employee v Contractors Fixed term contract Casual employees Restraint of Trade Trial Periods
  3. Employment Agreement Contract for Service Collective agreement Individual agreement
  4. Minimum Requirements Must have an employment agreement Employer must retain a signed copy Mandatory clauses: Parties Position and duties Place of work Hours Type of pay Public holidays Process for resolving employment relations problems
  5. Who is an employee? Volunteers Contractors v employees Indicative: contract, industry practice Intention of parties Control: hours, location, tax Number of employers Employees Supply own equipment Type of business Independence
  6. Fixed term contracts Must be for a reason Specify the date, event or project Rolling over the contract Should contain a provision allowing for early termination
  7. Casual Employees No expectation to give or work hours No expectation of continuing employment Disadvantage not to offer hours where they are available Contract
  8. Restraint of Trade Must be reasonable Geography and Time constraints Essential to protect business Public Interest
  9. Trial periods Trial periods have strict requirements No more than 90 days In writing Negotiated in good faith New employee Notice period Benefits Can’t raise PG for dismissal (though disadvantage etc. still available) No required to provide written explanation (but Good faith)
  10. Probationary periods Best practice More like a performance agreement Requirements In writing Duration and tasks are limited Benefits Gives employer a fair opportunity to assess the skills Does not limit legal rights or obligations May have shorter notice periods/shorter prescribed process

  11. Questions

  12. THANK YOU
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