Permanent Employment Contract Template for Australia

A permanent employment contract is a legally binding agreement that establishes the terms and conditions for an ongoing employment relationship between an employer and employee in Australia. Unlike fixed-term contracts, permanent employment provides ongoing job security and entitlement to the full range of employment benefits under Australian law, including notice periods, redundancy pay, and unfair dismissal protections after the minimum employment period.

When do you need this document?

You need a permanent employment contract when hiring employees for ongoing positions without a predetermined end date. This includes both full-time and part-time permanent roles across all industries and sectors. The contract is essential when offering positions that provide job security beyond probationary periods, when employees will be entitled to benefits such as annual leave and personal leave, and when you need to establish clear terms for performance management and potential termination. It's particularly important for senior roles, specialised positions, or when hiring employees who will have access to confidential information or trade secrets.

Key legal considerations

Your permanent employment contract must comply with the National Employment Standards, which set minimum entitlements for all employees including maximum weekly hours, annual leave, personal/carer's leave, and notice periods. The contract should clearly specify the employee's classification, award coverage if applicable, and any enterprise agreement that applies. Include detailed position descriptions, reporting structures, and key performance indicators to avoid disputes. Address confidentiality obligations, intellectual property ownership, and post-employment restraints carefully, ensuring any restraint clauses are reasonable in scope, duration, and geographic area. The probationary period should be clearly defined with specific review criteria and termination procedures during this period.

Legal requirements in Australia

Under the Fair Work Act 2009, you must provide a Fair Work Information Statement to new employees before or as soon as possible after they start work. The contract must not undercut minimum award wages or National Employment Standards entitlements. Superannuation contributions of at least 11% must be included for eligible employees under the Superannuation Guarantee (Administration) Act 1992. You must comply with privacy obligations when collecting and storing employee information under the Privacy Act 1988. Work health and safety obligations under the Work Health and Safety Act 2011 should be referenced, establishing the employer's duty of care and employee obligations. Modern awards may specify additional requirements such as minimum shift lengths, overtime rates, and penalty rates that must be incorporated. Anti-discrimination laws require equal treatment regardless of protected attributes, and reasonable adjustments may be required for employees with disabilities.