Where Can I Learn More About Creating an Employment Contract for Employees?

Close up image of hand signing a contract

An employee contract is an essential document that must be completed when employing a new staff member. It is a legal binding agreement between both the employer and employee which helps to protect your business for the long term. An employee contract clearly states an employees pay and conditions and is given to them before their employment begins.

To streamline this process for business owners, business.gov.au have created a build your own employment contract for employees’ tool under Australia’s Fair Work System. This tool is recommended for small businesses to create a contract for an employee under the national industrial relations system and can be used for full-time, part-time, and casual employees who are covered by an award. The build your own employment contract can be tailored to your business needs and helps small business employers make a basic employment contract that complies with workplace laws.

Follow the link below to access the tool:

https://employ.business.gov.au/

Read below to learn more about creating an employment contract for employees using the business.gov.au contract tool including:

  • What does the build your own employment contract tool include?
  • Can I use the contract tool for employees paid a salary?
  • What information will I need when creating a contract using the contract tool?

What does the build your own employment contract tool include?

The tool takes business owners through all the processes needed to be considered in an employment contract. It includes both conditions that you must provide to your employee and optional clauses to help set expectations and protect your business. It takes approximately 30 minutes to complete online and after filling in each field, you will be able to download the employment contract and a letter of offer in a word document.

Can I use the contract tool for employees paid a salary?

Salaries are not provided in the tool due to their complex requirements. To use this tool, you’ll need to pay your employee an hourly or weekly wage. If you are unsure what the award is, use the Fair Work Ombudsman’s Find my award tool by following the link below:

https://www.fairwork.gov.au/awards-and-agreements/awards/find-my-award

What information will I need when creating a contract using the contract tool?

The contract tool takes you through several steps and helps a business with everything that should form an employment contract including a position description, the employees award, employment type, workplace clauses and employment type. There are several other sections that must also be completed and once all the required fields are complete, you can review and download the contract and fill in the employee’s personal details.

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References:

Client eBrief August 2021 – The Institute of Certified Bookkeepers
Business.gov.au

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