General Employment Contract Template for Australia
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What is a General Employment Contract?
A General Employment Contract is essential for formalizing employment relationships in Australia and ensuring compliance with relevant employment legislation. This document should be used when hiring new employees or updating terms for existing staff members, providing a clear framework for the employment relationship. It incorporates mandatory requirements under the Fair Work Act 2009 and National Employment Standards, while allowing customization for specific roles and industries. The contract typically covers essential elements such as employment terms, compensation, benefits, duties, leave entitlements, and termination provisions, serving as a fundamental reference point for both employer and employee throughout the employment relationship.
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About the General Employment Contract
A General Employment Contract is the cornerstone document that legally defines the working relationship between you and your employees in Australia. This comprehensive agreement ensures compliance with federal employment legislation while protecting both employer and employee interests through clearly defined terms and conditions.
When do you need this document?
You need a General Employment Contract whenever you hire new staff, whether full-time, part-time, or casual employees. It's also essential when converting contractors to employees, promoting staff to new positions with different terms, or updating existing agreements to reflect changes in legislation or workplace policies. Many employers use this contract when establishing probationary periods, implementing performance management frameworks, or clarifying reporting structures within growing businesses.
Key legal considerations
Your employment contract must incorporate the National Employment Standards (NES) as minimum entitlements, including annual leave, sick leave, parental leave, and public holidays. Pay special attention to superannuation guarantee obligations, requiring contributions of at least 11% for eligible employees. Include robust confidentiality clauses to protect intellectual property and trade secrets, while ensuring restraint of trade provisions are reasonable in scope and duration. Address work health and safety responsibilities clearly, as employers face significant penalties for breaches. Privacy clauses must comply with the Privacy Act 1988, particularly regarding employee data collection and storage.
Legal requirements in Australia
Under the Fair Work Act 2009, your contract cannot undermine award conditions or enterprise agreements that apply to your workplace. You must specify the modern award covering your employee's role and ensure wages meet minimum standards set by the Fair Work Commission. Include mandatory dispute resolution procedures and unfair dismissal protections where applicable. Termination clauses must comply with notice periods under the NES, typically ranging from one to five weeks depending on length of service. For businesses with 15 or more employees, additional unfair dismissal protections apply. State-specific requirements may also apply, particularly regarding workers' compensation insurance and long service leave entitlements. Your contract should reference applicable anti-discrimination legislation and include equal employment opportunity commitments to prevent workplace discrimination claims.
GOVERNING LAW
Applicable law
This General Employment Contract is drafted to comply with Australia law. Key legislation includes:
Work Health and Safety Act 2011 (Cth): Sets out the main duties of care for workplace health and safety that employers must comply with to ensure the safety of their workers
Privacy Act 1988 (Cth): Regulates how employers must handle employee personal information and maintains privacy principles that must be followed
Superannuation Guarantee (Administration) Act 1992 (Cth): Establishes employer obligations for superannuation contributions for employees
Anti-Discrimination Acts (Federal and State): Various acts including Age Discrimination Act 2004, Sex Discrimination Act 1984, Racial Discrimination Act 1975, and Disability Discrimination Act 1992 that protect workers from workplace discrimination
Long Service Leave Act (State-specific): State-based legislation that provides for long service leave entitlements after extended periods of service
Workers Compensation Act (State-specific): State-based legislation that provides compensation and rehabilitation for workers who suffer workplace injuries
Income Tax Assessment Act 1997 (Cth): Governs taxation obligations for both employer and employee, including PAYG withholding requirements
Payroll Tax Act (State-specific): State-based legislation that imposes tax on employers based on total taxable wages paid to employees
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