Employment contracts are an important part of running any business. They set out the relationship between the employer and employee so that each party understands their obligations. If a dispute arises, the first document that is considered is the employment contract to determine what the terms of the employment relationship are. It is therefore important to get the employment contract right.
Below is a list of some of the most frequent employment contract mistakes we have encountered.
1. Contract terms do not comply with the Fair Work Act 2009 (Cth) or relevant Modern Award.
This is often an oversight by an employer, but it exposes the employer to unpaid wages claims.
2. Using out of date templates.
Templates are a great way to speed up the process of on-boarding an employee, however, they need to be regularly reviewed and up to date with the current legislation.
3. Employment relationship differs from the status given.
The actual employment relationship and conditions determine the employment status; not merely what is stated in the employment contract. Employers need to ensure the relationship is consistent with the intended status, or expose themselves to a claim.
4. Changing the terms of employment without agreement.
Contractual terms cannot be unilaterally changed by an employer.
5. Not going to the contract when dismissing an employee.
Failing to comply with the terms of the contract when dismissing an employee can expose the employer to a breach of contract claim, as well as any other claims that may be available to the employee such as unfair dismissal or general protection claims.
Do You Need Help?
Blossom Lawyers offers employment law services and has experience in representing both employers and employees in employment contract disputes, breach of contract claims and other employment-related claims. For general information, you can review our employment law FAQs.
Email or call Holly Mylne at Blossom Lawyers to discuss your legal matter. Otherwise submit a query using the contact us form.
Email: holly@blossomlawyers.com.au
Phone: (07) 5636 5598
