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Labour Employment Contract for Australia

Labour Employment Contract Template for Australia

An Australian Labour Employment Contract is a legally binding agreement that establishes the formal employment relationship between an employer and employee under Australian federal and state employment laws. The document outlines essential terms and conditions of employment including position details, compensation, benefits, working hours, leave entitlements, and other key employment terms while ensuring compliance with the Fair Work Act 2009 and other relevant Australian employment legislation. This contract serves as the primary reference document for both parties throughout the employment relationship and helps prevent future disputes by clearly defining rights, obligations, and expectations.

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What is a Labour Employment Contract?

The Labour Employment Contract is a fundamental document required for all formal employment relationships in Australia. It serves as a comprehensive agreement between an employer and employee, documenting the terms and conditions of employment while ensuring compliance with Australian employment law, particularly the Fair Work Act 2009 and relevant state legislation. This contract should be used when hiring new employees or formalizing existing employment relationships, and must be provided to employees before or at the commencement of employment. The document incorporates mandatory provisions required by Australian law, including National Employment Standards, and can be customized to include specific terms relevant to the position, industry, and employment arrangement while maintaining compliance with legal requirements.

What sections should be included in a Labour Employment Contract?

1. Parties: Identifies the employer and employee with full legal names and addresses

2. Background: Brief context about the employment relationship and purpose of the agreement

3. Definitions: Defines key terms used throughout the contract

4. Employment Basics: Details of position, classification, start date, and employment status (full-time, part-time, casual)

5. Duties and Responsibilities: Outline of the role, key responsibilities, reporting relationships, and performance expectations

6. Place of Work: Primary work location and any flexibility arrangements

7. Hours of Work: Standard working hours, overtime requirements, and flexible working arrangements if applicable

8. Remuneration: Base salary, superannuation, payment frequency, and review process

9. Leave Entitlements: Annual leave, personal/carer's leave, long service leave, and other leave types

10. Confidentiality: Obligations regarding confidential information during and after employment

11. Intellectual Property: Ownership and rights regarding work-created intellectual property

12. Policies and Procedures: Reference to workplace policies and obligation to comply

13. Termination: Notice periods, grounds for termination, and final payment provisions

14. Post-Employment Obligations: Restraint of trade and non-solicitation provisions

15. General Provisions: Governing law, entire agreement, variation, and severability clauses

16. Execution: Signature blocks and execution details

What sections are optional to include in a Labour Employment Contract?

1. Commission Structure: Include when role includes sales or performance-based incentives

2. Remote Work Arrangements: Include for positions with work-from-home or hybrid arrangements

3. International Assignment: Include for employees working across multiple jurisdictions

4. Company Property: Include when significant company assets are provided

5. Training Requirements: Include when specific qualifications or training are required

6. Probationary Period: Include for new employees subject to probation

7. Bonus Arrangements: Include when position includes discretionary or performance bonuses

8. Share Options: Include when employee is offered equity participation

9. Travel Requirements: Include when role involves significant travel

10. Flexible Working Arrangements: Include when non-standard working arrangements apply

What schedules should be included in a Labour Employment Contract?

1. Schedule 1 - Position Description: Detailed description of role, responsibilities, and key performance indicators

2. Schedule 2 - Remuneration Details: Comprehensive breakdown of salary package, benefits, and incentives

3. Schedule 3 - Company Policies: List of applicable workplace policies and procedures

4. Schedule 4 - Restraint of Trade: Detailed post-employment restrictions including geographical and temporal limits

5. Appendix A - Employee Benefits: Details of additional benefits such as health insurance, car allowance, phone allowance

6. Appendix B - Workplace Equipment: List of company property provided to employee

7. Appendix C - Performance Metrics: Specific performance targets and measurement criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Cost

Free to use

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