Definition

An employment agreement sets out the rights and obligations of an employer and an employee. All terms of an employment agreement are subject to national employment standards or an applicable award.

Essential Characteristics

The following terms and conditions should be included in employment agreements:

• Name and personal details of the employer and employee
• Commencement date and probation period 
• Job title and description which sets out role and duties of the employee
• Employer policies and procedures
• Clauses about the essential requirements of the role
• Type of employment 
• Place of work and hours of operation 
• Remuneration clauses
• Leave entitlements 
• Clauses protecting employer property and information 
• Confidentiality clauses
• Non-disparagement clauses that prevent the employee from engaging in actions that may bring the employer into disrepute
• Amount of notice required to be given by the employer and employee to end the employment relationship in a manner that is compliant with the Fair Work Act
• Termination clauses
• Clauses regarding Assignment, Jurisdiction, Severability and Variation of Terms