You need one from day one, for every employee. A clear written contract is not red tape. It is the simplest way to prevent disputes and make sure both sides know exactly where they stand.

Why it matters

Without a written contract, the terms of employment get pieced together from conversations, emails and assumptions. That is where disagreements start, over pay, hours, notice, or what someone believes they were promised. A good contract removes the ambiguity before it can become a problem, and it protects the employee as much as the business.

What a good contract covers

  • Position, duties and who the person reports to.
  • Employment type: full-time, part-time or casual, and what that means in practice.
  • Pay, and how any salary relates to the relevant award.
  • Ordinary hours of work and any agreed flexibility.
  • Leave entitlements, consistent with the National Employment Standards.
  • Notice periods and how employment can end.
  • Confidentiality, and any policies that form part of the role.

For casual employees there are extra considerations, including the current rules on casual employment and how a casual can move to permanent work.

A contract is not set and forget

A contract signed years ago and never updated can be worse than none, because it may no longer reflect the role or the current law. When someone is promoted, changes hours, or their pay structure changes, update the contract. A resignation or a dispute is not the moment to discover the paperwork was never refreshed. It is also worth a review when the law changes, as it has recently around casuals and contractors.

Common mistakes

  • Using a template found online that does not fit Australian law or the relevant award.
  • Never issuing one for casuals, on the assumption they do not need it.
  • Letting the contract and the actual job drift apart over the years.
  • Forgetting the Fair Work Information Statement, which must be given to new employees.

If your contracts are missing, out of date, or you are not sure they are compliant, HR Setup and Structure puts the right foundations in place properly, so you are covered from the start.