Providing employees with a written employment agreement is beneficial as it clearly outlines both parties’ rights, responsibilities and obligations, minimising misunderstandings, setting expectations, and offering legal protection for both you and your employee.
Employment agreements ensure employee’s entitlements are clear, such as those covered by the National Employment Standards (NES), and they help establish a solid foundation for a positive working relationship.
Employment agreements offer employers various benefits including:
1. Clarity: clearly defines roles, responsibilities and expectations for both parties.
2. Legal protection: provides a legal framework safeguarding both the employer and employee.
3. Terms and conditions: outlines compensation, benefits, working hours, termination and leave.
4. Dispute resolution: provides a structured framework for resolving disputes that may arise during the course of employment.
5. Security: offers stability and security, reducing uncertainties for both employer and employee.
6. Retention: can enhance employee loyalty by demonstrating commitment and offering job security.
Remember – an employment agreement cannot provide less entitlements for your employee than the legal minimum set out in:
• the NES; or
• awards, enterprise agreements or other registered agreements that may apply.
You don’t have to provide your employees with a written agreement, but keep in mind that:
• you must give every new employee a copy of the Fair Work Information Statement;
• the employee will still be covered by the NES, any relevant award and employment legislation, regardless of whether they’ve signed an employment agreement or not; and
• an employment agreement will help you if there are issues or disputes.
Knowing what to include in an agreement and what type of agreement you need for each employee can be confusing. For help with employment agreements, you can contact a human resource professional or an employment lawyer.
Get in touch today or head to our online store to view our range of employment agreements.
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