Employers: How can employment agreements affect you?

As an employer, the employment agreement is an opportunity for you to outline the basic terms and requirements for your employees. This allows the employment relationship to commence with both parties having the same understanding of the obligations and expectations of the job.

The basic terms that can be included in an employment agreement include the following:-

• The duties expected to be undertaken by the employee;
• Where and when they are expected to work;
• Their remuneration and bonuses;
• That they work for you and no other business without your consent;
• All information of your business is to remain confidential, including after termination of the employment relationship;
• Any intellectual property created by the employee as part of their job belongs to your business;
• Your ability to deduct any money owed to you by the employee from any final payments due to them at the end of the employment relationship;
• The right to terminate without cause and the expected notice periods;
• A probationary period for you to assess the employee’s skills and suitability to the role;
• Any requirements for police checks or working with children checks;
• Confirmation by the employee that they have the right to work in Australia;
• Your ability to view and monitor information technology and related business equipment;
• Your ability to reasonably restrain an employee from working for a competitor or approaching the business’ staff and clients for a period after the termination of the employment relationship; and
• Confirmation of the National Employment Standards that the employee is entitled to rely on.

DISCLAIMER: This article is general advice only and will not be applicable in all circumstances. If you require an employment agreement to be prepared, please contact our office on (03) 9690 5638.

Posted: 6th April 2018.