Employment Memorandum Of Understanding Template for Australia

An Employment Memorandum of Understanding is a preliminary document that outlines the key terms and conditions of employment between an employer and employee in Australia. It serves as a foundation for the formal employment contract while complying with Australian employment law, including the Fair Work Act 2009 and relevant state legislation. The document captures essential elements such as role description, compensation, working conditions, and basic terms of employment, while providing flexibility for future detailed contractual arrangements.

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What is a Employment Memorandum Of Understanding?

The Employment Memorandum of Understanding (MOU) is typically used in Australian workplaces during the initial stages of employment negotiation or for temporary employment arrangements. It serves as an interim document that establishes the fundamental understanding between parties before finalizing a formal employment contract. This document is particularly useful when parties need to quickly document basic employment terms while allowing time for more detailed contractual negotiations. The MOU must align with Australian employment legislation, including the Fair Work Act 2009, relevant state laws, and National Employment Standards. While not as comprehensive as a full employment contract, it covers essential aspects such as role responsibilities, compensation, working hours, and basic terms of engagement, providing both parties with clarity and preliminary protection.

What sections should be included in a Employment Memorandum Of Understanding?

1. Parties: Identification of the employer and employee, including full legal names and contact details

2. Background: Context of the employment relationship and purpose of the MOU

3. Definitions: Key terms used throughout the document

4. Term of Employment: Duration of employment, including start date and whether fixed-term or ongoing

5. Position and Duties: Job title, role description, and key responsibilities

6. Location and Hours: Primary work location and standard working hours

7. Remuneration: Base salary, superannuation, and any additional benefits

8. Leave Entitlements: Overview of various leave types and entitlements

9. Probation Period: Length and terms of the probationary period

10. Confidentiality: Obligations regarding confidential information

11. Termination: Conditions and process for ending the employment relationship

12. Governing Law: Specification that the MOU is governed by Australian law

What sections are optional to include in a Employment Memorandum Of Understanding?

1. Remote Work Arrangements: Terms for working from home or other locations, used when flexible working arrangements are offered

2. Commission Structure: Details of performance-based compensation, included for sales or commission-based roles

3. Non-Compete Clause: Restrictions on post-employment competition, used for senior roles or when dealing with sensitive information

4. Intellectual Property: Rights and obligations regarding IP created during employment, important for creative or technical roles

5. International Travel: Terms for international work requirements, included when role involves overseas travel

6. Training and Development: Provisions for professional development and required certifications

7. Vehicle Allowance: Terms of company vehicle use or vehicle allowance, if applicable

8. Flexible Working Arrangements: Terms for flexible hours or working conditions, if offered

What schedules should be included in a Employment Memorandum Of Understanding?

1. Schedule A - Position Description: Detailed description of the role, responsibilities, and reporting relationships

2. Schedule B - Remuneration Details: Comprehensive breakdown of salary package, including superannuation and benefits

3. Schedule C - Company Policies: List of applicable company policies the employee must comply with

4. Schedule D - Performance Metrics: Key performance indicators and evaluation criteria

5. Appendix 1 - Employee Benefits: Detailed description of additional benefits and how to access them

6. Appendix 2 - Workplace Technology Policy: Guidelines for use of company technology and systems

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use

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