Employment Agreements – Are They Necessary?

Under the Fair Work Act employers are obliged to provide new employees with a copy of the Fair Work Information Statement or the Fair Work Casual Employment Information Statement. This statement outlines basic information about the NES, Awards, agreement making, workplace rights, and termination of employment. So why do we issue employment agreements (also known as employment contracts)?

In addition to detailing the nature and duration of employment, probationary periods, particular Award arrangements etc the contract also plainly sets out the obligations and expectations of both the employer and the employee meaning both parties are clear about the specifics of the employment arrangement.

An employment contract may be made verbally however it is recommended that contracts be issued in written form because they provide the mechanism for formalising the employment relationship. Because employment contracts are legally enforceable, a written contract gives more certainty should there be a dispute or disagreement concerning the working arrangements, terms and conditions of employment, and ending the relationship.

If you’re an employer who needs help with developing or reviewing employment contracts, get in touch via the contact form or by email megan@mmchr.com.au


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