Employment Contract FAQ - Australia

Employment Contract FAQ - AustraliaEmployment Contract FAQ - AustraliaWhy wont an oral Employment Contract be sufficient for me?The problem with oral agreements is that they are difficult to prove. If a dispute arose, a court would have to hear evidence and decide whose version of the truth to accept. If tzu siche is a written agreement, courts will generally be obligated to uphold its terms even if they dont agree with them.What is addressed in an Employment Contract?Employment Contracts typically address the following the job position being offered and accepted the term of employment details of holiday, sickness, and grievance policies the compensation that will be provided to the employee and the responsibilities of the employee and employer.In addition, Employment Contracts may also provide specifics on whether the employee will have a probation period how confidential information is to be treated upon the employees termination and whether there are limitations on the employees a bility to compete with the employers geschftlicher umgang upon the employees termination.What are the duties of the employee?The duties of the employee refer to the tasks that will be performed or the functions and responsibilities of the job position. Ensure that your description of the employees duties is clear. You should review your description and make sure that it is grammatically correct within the context of the document.What is the difference between an Employment Contract and a Service Agreement?Service Agreements are used to hire service providers or independent contractors, bedrngnis employees. A Service Agreement is limited to a specific project or time period. Employment Contracts are used to hire employees.What is the difference between an employee and independent contractor?Generally, employees are viewed as workers who are employed whereas independent contractors are viewed as workers who are selfs of relevant factors are who is providing the tools for the job the level of skill required for the job who controls the work and the work product whether the hired party must provide oral/written progress reports whether the job is performed on the geschftliches miteinander premises the duration of the relationship between the parties the ability to delegate or sub-contract the job of the hired party whether the hired party has discretion over how long and when they work whether any insurance or benefits are provided to the hired party whether the hired partys expenses are reimbursed whether the hired party can realise a profit or loss whether the work is part of the regular business of the hiring party whether the parties have a written agreement defining the status of the hired party the method of payment and the way the hired party is treated by taxing authorities. What is a probationary period?A probationary period is a limited period of time after the employee commences work during which either party has the right to terminate the agreement. In some jurisdictions, termination can occur without notice or compensation (other than wages owed for hours of work already completed). Many employers require their employees to successfully complete a probationary period before offering them a longer term position. How much annual leave is the employee entitled to receive?Most full-time workers receive four weeks annual leave for every 12 months worked. Part-time employees are entitled to four weeks annual leave but paid on a pro rata basis. Casual workers generally do not receive annual leave. To compensate, they are paid a loading on top of their normal rate of pay.What does notice mean?Notice refers to a period of time prior to termination of the employment contract. The purpose of notice is to allow the employee to find other employment or the employer to find a replacement employee. In most jurisdictions, the law requires employers to give employees a notice period (or pay in lieu of notice) before termination. Typically, the length of the minimum notice period required by law depends on the length of the employment relationship. In some circumstances the employer may terminate the employee without notice if there is sufficient cause. In most jurisdictions if ones employment is terminated with cause, there is no requirement on the part of the employer to provide notice or pay in lieu of notice. However, the employer must ensure that the reason for termination is properly communicated at the time of termination. Some examples of cause are dishonesty, disloyalty, insubordination, lateness/absenteeism, disruption of business of affairs, alcohol or drug use, incompetence, neglect of duty, criminal or immoral conduct and sexual harassment. Note that the employer may have to prove to a court (or other tribunal) that there was sufficient cause for termination.How can an employer protect work product and other confidential information?An employer can protect his/her confidential information by inserting a claus e that says all confidential information including work product belongs to the employer. This clause is automatic in LawDepots U.S. and Canadian forms. To insert this clause in the United Kingdom or Australia, simply check the box Confidential information under the heading Optional Clauses for More Complex Contracts. The document will then state that all confidential information including work product belongs to the employer. LawDepots Employment Contract broadly defines confidential information to protect everything from trade secrets to customer lists.What is the difference between a non-competition clause and a non-solicitation clause?A non-competition clause prevents the employee from unfairly competing with the employer after the employment is terminated. This means that when the employees employment comes to an end, he or she cannot take a job at a business which is in direct competition with the employer. A non-solicitation clause prevents the employee from inducing other emp loyees or contractors from leaving the employer or from interfering with the employers relationship with other employees in general. This means that the employee cannot invite the employers other employees to move with him or her to another workplace.Courts MAY NOT enforce a non-competition or non-solicitation clause if the clause could be injurious to the public (e.g. if it could depress the local economy) the clause is broader than necessary to protect the employer the clause would cause undue hardship on the employee (e.g. it would make it difficult for the employee to find new employment) or the clause has unreasonable time and geographic restrictions.What geographic restrictions can the employer make in the non-competition clause?You can only prevent an employee from engaging in a business that competes with your business within a geographic area large enough to protect your business. The restriction must be reasonable so that the employee is not restricted from engaging in his or her usual trade in an area that could not affect your business (e.g. 25 km from the employers place of business).