Eap Assist | Employment Agreement: Five essential terms to include:
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Employment Agreement: Five essential terms to include:

An employment agreement is a legal agreement between employers and their employees which dictates the terms and conditions of the employer’s relationship with their employees.

  1. Set out the pay in an employment agreement. There are national minimum wages that must be adhere to in an employment agreement. If your business, however, falls under an industry that has a Fair Work award, the terms regarding pay in an employment agreement must be by the terms of the award.
  2. When drafting an employment agreement, you must include the hours you require employees to work, the leave that they are entitled to and the reasons and conditions surrounding termination and redundancy. General conditions and standards are underpinned by the National Employment Standards (NES) issued by the Fair Work Commission and it is important that these standards are included in an employment agreement.
  3. A restraint of trade clause or non-competition clause prevents your employees from becoming a competitor or joining a competitor during their employment and even after the duration of their employment with you.
  4. In order to protect such assets, such as information, ideas and property, it is advisable to include a confidentiality clause in an employment agreement.
  5. It is often wise to include a dispute resolution clause in an employee agreement to ensure that disputes are dealt with both efficiently and effectively.

For further advice or assistance contact EapAssist.com.au

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