Writing an employment contract
Developing a written contract for all employees is a good practice. A written contract is particularly important for award-free employees.
- Step-by-step guide
- What should be included?
- Minimum conditions of employments and other obligations
- Help for employers
Step-by-step guide
The following is a brief overview of the steps involved in establishing a written employment contract for new employees.
| Step 1 | Establish whether an award or agreement applies to employees. | Contact Wageline on 1300 655 266 |
| Step 2 | Establish employment conditions appropriate for the job, which are consistent with award/agreement provisions. | |
| Step 3 | Ensure that these comply with the Minimum Conditions of Employment Act and other employment obligations. | See Minimum wages and conditions for more information. |
| Step 4 |
Draft the contract document, preferably in plain English. |
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| Step 5 |
Discuss the contract with the new employees to make sure they understand their conditions, pay and obligations under the contract. When signed give employees a copy and keep one on file. |
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| Step 6 | Keep appropriate employment records. | See Record Keeping section for more info. |
What should be included?
The purpose of a written employment contract is to specify rights, obligations and conditions of employment.
While there is no mandatory requirement for the information to be included in a written contract of employment, employers should ensure the contract addresses certain key issues and meets all minimum employment conditions.
The provisions made by the Minimum Conditions of Employment Act 1993 are implied into every State contract of employment, and apply whether specified in writing or not. To ensure employees, managers and employers all clearly understand the rights and obligations imposed by the Act and other statutory obligations, it is good practice to specify these in the contract. Meanwhile, employers are free to develop pay and conditions over and above minimum requirements.
All conditions included in a contract should clearly state the intentions and obligations of each party. Provisions should be written in plain English, using terms which relate to the workplace and are easily understood.
Some important information to consider include:
Basic Information
- Names and details of employers and employees
- Date of birth of employees
- Job title
- Place of work
- Employment status (e.g. full-time, part-time or casual)
- If the employment is for a fixed term, the start and end dates of the contract
- Who employees report to in the organisation
Employment Conditions
- Agreed pay rate (must meet minimum conditions of employment and any applicable award/agreement wage rates)
- Hours of work, including details of meal breaks and what arrangements apply for additional hours (must comply with hours in any applicable award or agreement)
- Leave entitlements (must meet minimum conditions of employment and any applicable award/agreement leave provisions)
Other Conditions
- Arrangements in relation to parking, use of a company vehicle, or transport
- Key job duties and/or standards of performance
- Probationary period/start date
- Family-friendly provisions
- Classification/progression scales
- Uniforms or dress standards
- Allowances
- Performance standards
- Job duties
- Rosters /shift work
- Study leave
- Training and development
- Cultural leave
- Safety issues
- Customer service requirements
- Meal breaks
- Confidentiality
- Transfer
- Company policies and rules
- Performance bonuses
- Use of work equipment
- Board/travel arrangements
- Leave without pay
The Innovative Working Conditions section of this website provides employers and employees who are developing new agreements for their workplaces with ideas, options and inspiration. More than 30 examples of innovative workplace arrangements are provided.
More information on workplace flexibility and family friendly initiatives is also available in the Work and Family section of this website.
Minimum conditions of employment and other obligations
Any contract of employment must meet all of the conditions outlined in the Minimum Conditions of Employment Act 1993.
The Act specifies minimum entitlements in relation to wages, leave, public holidays and redundancy, workplace change and record keeping.
Information on these entitlements is provided in the Minimum wages and conditions section of this website.
Employers must also provide employees with their other statutory entitlements, such as long service leave, superannuation and the notice periods for termination required by the federal Workplace Relations Act 1996.
Help for employers
The Education and Advisory Unit at DOCEP can provide one-on-one assistance to employers on a range of employment issues. An Education Officer can provide information on rights and obligations and how to develop a contract which meets the needs of the business and the employees. To arrange an appointment with an Education Officer, call Wageline on 1300 655 266.