Employment Term Sheet for Australia

Employment Term Sheet Template for Australia

An Employment Term Sheet is a preliminary document used in Australian employment relationships to outline the key terms and conditions of employment before finalizing a formal employment contract. The document complies with Australian employment law, including the Fair Work Act 2009 and relevant state legislation, and sets out essential elements such as position details, remuneration, benefits, working conditions, and basic obligations of both parties. It serves as a foundation for the full employment agreement while providing clarity on fundamental employment terms during the hiring process.

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What is a Employment Term Sheet?

The Employment Term Sheet is a crucial preliminary document used in Australian employment contexts to establish clear expectations and basic terms of employment before proceeding with a comprehensive employment contract. It is typically used during the final stages of recruitment when an employer and potential employee have agreed in principle to an employment relationship but need to document the key terms. The document includes essential information such as role details, compensation, working arrangements, and basic obligations while ensuring compliance with Australian employment legislation, particularly the Fair Work Act 2009 and National Employment Standards. This term sheet serves as a foundation for the subsequent employment contract and helps prevent misunderstandings about fundamental employment terms during the hiring process.

What sections should be included in a Employment Term Sheet?

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

2. Background: Brief context about the employment offer and its circumstances

3. Definitions: Key terms used throughout the term sheet

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

5. Commencement and Term: Start date and nature of employment (permanent/fixed-term)

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

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

8. Remuneration: Base salary, superannuation, and payment arrangements

9. Leave Entitlements: Annual leave, personal/carer's leave, and other statutory leave entitlements

10. Termination: Notice periods and termination provisions

11. Confidentiality: Basic confidentiality obligations

12. Governing Law: Specification of Australian law as governing law

What sections are optional to include in a Employment Term Sheet?

1. Commission/Bonus Structure: Details of variable compensation, used when role includes performance-based pay

2. Equity Participation: Share or option schemes, included for senior roles or startups

3. Remote Work Provisions: Specific arrangements for remote or hybrid working, if applicable

4. Post-Employment Restrictions: Non-compete and non-solicitation clauses, typically for senior or sales roles

5. Travel Requirements: Details of required travel and related compensation, if role involves regular travel

6. KPIs and Performance Metrics: Specific performance expectations, used for senior roles or sales positions

7. Industry-Specific Requirements: Special conditions related to specific industries (e.g., financial services, healthcare)

8. Flexible Working Arrangements: Specific flexible work provisions beyond standard arrangements

What schedules should be included in a Employment Term Sheet?

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

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

3. Schedule 3 - Company Policies: List of key company policies that form part of the employment terms

4. Schedule 4 - Bonus/Commission Structure: Detailed explanation of variable compensation calculations and terms

5. Appendix A - Required Qualifications: List of mandatory qualifications, certifications, or licenses for the role

6. Appendix B - Equipment and Resources: Details of company-provided equipment and resources

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

Document Type

Cost

Free to use

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