Employee Retainer Agreement Template for Australia
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What is a Employee Retainer Agreement?
The Employee Retainer Agreement is designed for use in the Australian employment context where an ongoing, stable employment relationship is desired with regular service provision and compensation. This document is particularly suitable for professional roles requiring consistent engagement and specialized expertise. It establishes the framework for employment while ensuring compliance with Australian employment legislation, including the Fair Work Act 2009, relevant state laws, and National Employment Standards. The agreement covers essential employment terms including duties, compensation, benefits, leave entitlements, confidentiality, and termination provisions, while allowing flexibility to accommodate specific role requirements and industry standards. It's structured to protect both employer and employee interests while maintaining clear alignment with Australian employment law requirements.
About the Employee Retainer Agreement
An Employee Retainer Agreement is a formal employment contract that establishes an ongoing working relationship between you and your employee under Australian law. This document goes beyond standard casual employment arrangements by creating a stable, continuous employment structure with regular compensation and defined obligations. It ensures compliance with the Fair Work Act 2009 and National Employment Standards while providing clarity on terms that protect both parties' interests.
When do you need this document?
You need this agreement when hiring employees for ongoing professional roles that require consistent availability and specialized expertise. It's particularly valuable for senior positions, consultants, advisors, or technical specialists where you need guaranteed access to their services over extended periods. Unlike casual arrangements, this agreement creates employment security for the worker while ensuring you have priority access to their skills. Use this document when establishing relationships with key personnel whose consistent involvement is critical to your business operations, or when converting existing casual arrangements into more formal employment structures.
Key legal considerations
Your agreement must clearly define the employment relationship to avoid misclassification issues under Australian employment law. Include specific clauses covering the employee's duties, reporting relationships, and performance expectations to prevent disputes. Address confidentiality and intellectual property ownership, particularly for roles involving access to sensitive business information or creation of proprietary materials. Ensure termination clauses comply with Fair Work Act requirements, including minimum notice periods and unfair dismissal protections. Include dispute resolution mechanisms and specify which state or territory laws apply if federal legislation doesn't cover specific aspects. Consider including non-compete or restraint of trade clauses, but ensure they're reasonable in scope and duration under Australian competition law.
Legal requirements in Australia
Your Employee Retainer Agreement must comply with the Fair Work Act 2009, which sets minimum standards for employment conditions, wages, and termination procedures. Include all National Employment Standards entitlements such as maximum weekly hours, annual leave, personal leave, and public holidays. Ensure superannuation obligations under the Superannuation Guarantee Act are addressed, typically requiring employer contributions of at least 11% of ordinary earnings. Address workplace health and safety duties under the Work Health and Safety Act 2011, including the employee's responsibilities and your duty of care obligations. Include privacy protections compliant with the Privacy Act 1988 for handling employee personal information. Consider anti-discrimination provisions and ensure the agreement doesn't contravene federal or state anti-discrimination laws. For certain industries, additional licensing, professional registration, or sector-specific requirements may apply to the employment relationship.
GOVERNING LAW
Applicable law
This Employee Retainer Agreement is drafted to comply with Australia law. Key legislation includes:
National Employment Standards (NES): Sets out 11 minimum employment entitlements that must be provided to all employees, including maximum working hours, leave entitlements, and notice of termination
Superannuation Guarantee (Administration) Act 1992: Mandates employer contributions to employees' superannuation funds and sets out related obligations
Privacy Act 1988 (Cth): Regulates the handling of personal information of employees and the privacy obligations of employers
Work Health and Safety Act 2011: Sets out workplace health and safety obligations and duties of care for employers and employees
Anti-Discrimination Laws (various): Including Age Discrimination Act 2004, Sex Discrimination Act 1984, Racial Discrimination Act 1975, and Disability Discrimination Act 1992
Independent Contractors Act 2006: Relevant for determining the true nature of employment relationships and preventing sham contracting arrangements
Income Tax Assessment Act 1997: Governs taxation obligations for both employer and employee, including PAYG withholding requirements
Long Service Leave Acts (State-based): State-specific legislation governing long service leave entitlements
Competition and Consumer Act 2010: Includes provisions relevant to restraint of trade and non-compete clauses that might be included in the retainer agreement
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