Many businesses use employment contracts when hiring new employees. An employment contract is an agreement between an employer and an employee when they start employment. It states the exact nature of the work, job requirements including rates of pay or salary.
For an employment contract to be legally binding, it must contain the following elements:
- Offer and acceptance
- There must be an offer from the employer and the terms of that offer. An offer can be withdrawn at any time before it is accepted. When there is no time limit for the offer to be accepted then that offer will be regarded as having lapsed after a fair time.
- In most cases, consideration will be the payment of money in return for work. Sometimes it also involves free use of a company car and other benefits.
- Intention to create a legal relationship
- Both the employer and employee must intend to create a binding relationship.
- The bodies entering into the contract must have legal capacity to do so. Some groups have limited capacity, such as bankrupts, people under the age of 18 years unless it is for their benefit e.g. an apprenticeship or traineeship.
- Legality of the Work
- The job that is to be completed by the employee must not be illegal.
We can also assit in the provision of Independant Contractor Contracts and advice on labour classifications, entitlements and requirements.
It is important not to confuse an employment contract with an independent contractor agreement as there are significant penalties under the provisions of the Fair Work Act 2009 for Sham Contracting.
We can help you assess your needs and formalise the correct classification and relationship.
We can help you with writing legal and equitable employment contracts. Call me, Leigh Bernhardt on (07) 5530 7625