This Employment Contract With Equity is designed for Australian companies looking to attract and retain key talent by offering both employment and ownership opportunities. It is particularly suitable for startups, scale-ups, and established companies implementing employee equity schemes. The document incorporates all essential elements required under Australian employment law while adding sophisticated equity participation provisions. It's commonly used when hiring senior executives, key technical personnel, or other valuable employees where equity forms part of the compensation package. The contract ensures compliance with the Fair Work Act 2009, Corporations Act 2001, and relevant tax legislation, while protecting the company's interests through appropriate confidentiality, IP, and restraint provisions. This type of agreement has become increasingly important in the Australian market as companies compete for top talent and seek to align employee interests with company growth objectives.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
Alternatively...
1. Parties: Identification of the employer and employee, including ABN/ACN for the employer and full legal name and address for the employee
2. Background: Context of the employment relationship and brief description of the business
3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpreting the contract
4. Employment Terms: Position, duties, reporting lines, and employment status (full-time, part-time, casual)
5. Commencement and Duration: Start date, probationary period, and term of employment
6. Remuneration and Benefits: Base salary, superannuation, bonus arrangements, and other benefits
7. Equity Participation: Details of share/option grants, vesting schedules, and conditions
8. Hours of Work: Standard working hours, overtime expectations, and flexible working arrangements
9. Leave Entitlements: Annual, personal, long service, and other leave entitlements
10. Confidentiality: Protection of company confidential information and trade secrets
11. Intellectual Property: Ownership and assignment of IP created during employment
12. Post-Employment Obligations: Non-compete, non-solicitation, and other restraints
13. Termination: Notice periods, grounds for termination, and post-termination obligations
14. General Provisions: Governing law, entire agreement, variation, and severability clauses
1. Performance and Review: Details of performance review process and KPIs - include for senior roles or performance-based compensation
2. International Travel: Terms for international work and travel - include if role requires overseas work
3. Commission Structure: Detailed commission calculations and terms - include for sales roles
4. Flexible Working Arrangements: Specific provisions for remote work or flexible arrangements - include if offering non-standard working arrangements
5. Garden Leave: Provisions for garden leave during notice period - include for senior executives
6. Change of Control: Impact of company ownership changes on employment/equity - include for senior roles or significant equity grants
7. Secondment: Terms for potential secondment to related entities - include if relevant to business structure
8. Sign-on Bonus: Terms and conditions of any sign-on bonus - include if offering signing incentives
1. Schedule 1 - Position Description: Detailed outline of role, responsibilities, and key performance indicators
2. Schedule 2 - Equity Terms: Detailed terms and conditions of the equity scheme, including vesting schedule and exercise terms
3. Schedule 3 - Bonus Scheme: Details of any performance bonus or incentive schemes
4. Schedule 4 - Company Policies: List of applicable company policies and procedures
5. Schedule 5 - Restraint Provisions: Detailed post-employment restraints with cascading clauses
6. Appendix A - Share Plan Rules: Full rules of the employee share scheme or option plan
7. Appendix B - Consent Forms: Required forms for privacy, IT policies, and other consents
8. Appendix C - Superannuation Information: Details of superannuation arrangements and choice of fund forms
Is an employment contract with equity legally binding in Australia?
Yes, an employment contract with equity is legally binding in Australia when it complies with the Fair Work Act 2009 and Corporations Act 2001. The contract must meet minimum employment standards under the Fair Work Act, while the equity component must comply with corporate law requirements for share allocations and employee share schemes.
Do I need a lawyer to draft an employment contract with equity in Australia?
While not legally required, it's highly recommended to engage a lawyer experienced in employment and corporate law. These contracts involve complex interactions between employment obligations under the Fair Work Act 2009 and equity arrangements under the Corporations Act 2001, making professional legal advice essential for compliance.
Can I enforce an incomplete employment contract with equity in Australia?
An incomplete contract may be difficult to enforce and could expose both parties to legal risks. Missing essential terms around equity vesting, performance conditions, or employment obligations could lead to disputes. Courts may apply statutory minimums from the Fair Work Act, but equity terms without proper documentation may be unenforceable.
Authors
Find the document you need
Placement Agency Agreement
An Australian-law governed agreement between a placement agency and client company for recruitment services, defining service terms, obligations, and fee structures.
Download
Staffing Agency Contract With Client
An Australian-law governed agreement between a staffing agency and client company for the provision of temporary and permanent staffing services.
Download
Placement Contract Agreement
An Australian legal agreement between a placement agency and host employer governing temporary staffing arrangements and compliance with labor hire regulations.
Download
Employment Service Contract
An Australian-law compliant employment agreement establishing terms and conditions between employer and employee, aligned with the Fair Work Act and related legislation.
Download
Employment Agency Contract With Client
An Australian-law governed agreement between an employment agency and client company establishing terms for recruitment and placement services.
Download
Employment Contract With Equity
An Australian employment agreement that combines standard employment terms with equity participation rights, compliant with Australian employment and corporate laws.
Download
Placement Fee Agreement
An Australian-compliant agreement between recruitment agencies and clients establishing terms and fees for recruitment services.
Download
Employment Contract With Accommodation
An Australian employment contract that includes provisions for employer-provided accommodation, compliant with federal employment laws and state residential tenancy regulations.
Download
Staffing Company Contract
An Australian-law governed agreement between a staffing company and client organization for the provision of temporary staffing services and worker placement.
Download
Staffing Agency Contract Agreement
An Australian-law governed agreement between a staffing agency and client company for temporary workforce provision, ensuring regulatory compliance and defining service terms.
Download
Employment Agency Contract
An Australian-law governed agreement between an employment agency and client company establishing terms for recruitment services and candidate placements.
Download
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
