Employment Term Sheet Template for Australia

An Employment Term Sheet is a preliminary document that outlines the key terms of employment before you execute a comprehensive employment contract. This document helps you establish clear expectations with prospective employees while ensuring compliance with Australian employment legislation, particularly the Fair Work Act 2009.

When do you need this document?

You need an Employment Term Sheet during the final stages of recruitment when you've agreed in principle to hire someone but haven't yet prepared the full employment contract. This document is essential when you're making a formal job offer to a candidate and want to document the basic terms before they start work. It's particularly useful for senior positions or complex roles where negotiation of terms may take time, allowing both parties to confirm their understanding before investing in detailed contract preparation. The term sheet also serves as protection when there's a gap between the job offer acceptance and contract execution.

Key legal considerations

Your Employment Term Sheet must comply with the National Employment Standards under the Fair Work Act 2009, which set minimum entitlements for all employees. You must ensure the proposed terms meet minimum wage requirements under relevant modern awards or enterprise agreements. Include clear details about the probationary period, which cannot exceed six months for most employees under Australian law. Address superannuation obligations, as you're required to contribute at least 11% of ordinary time earnings to your employee's superannuation fund. Consider work health and safety obligations and ensure any confidentiality or restraint clauses are reasonable and enforceable under Australian law.

Legal requirements in Australia

Under Australian employment law, your term sheet should reference compliance with the Fair Work Act 2009 and applicable modern awards or enterprise agreements. You must include mandatory superannuation contributions and ensure proposed working hours don't breach maximum weekly limits unless proper overtime arrangements are specified. Anti-discrimination legislation requires that employment terms don't unfairly disadvantage employees based on protected attributes. Privacy Act 1988 obligations apply if you're collecting personal information during the hiring process. While not legally required to provide a term sheet, documenting agreed terms helps demonstrate good faith and can prevent disputes about what was actually offered and accepted during recruitment.