First things first
Any contract should include the following points:
- identification of the employee by name and address;
- the knowledge that the employee has an ability to work in Australia;
- identification of the position the employee will fill (see Position Description for more details);
- reference to any award that covers the employee: if the person is a management employee, it should be confirmed that he/she is not covered by an award.
What else can you expect in a contract?
No contract can ignore the National Employment Standards.
These are largely concerned with hours of work, leave entitlements and work on public holidays.
Maximum hours of work are 38 hours a week, and the employee can ask for flexible working arrangements
Under the National Employment Standards, leave entitlements fall under the following headings:
- Parental leave and related entitlements
- Annual leave
- Personal/carer’s leave
- Community leave
- Long Service leave.
Minimum Conditions of Employment
In addition there are 10 minimum conditions of employment, tailored to the needs of the particular industry or occupation.
Some of these deal with wages: minimum wages, overtime and penalty rates, and the fact that wage and salary arrangements are subject to an annual review.
Wages
The task of setting national minimum wages is a function of the Minimum Wage Panel of Fair Work Australia.
Award modernization is expected to come into force in January 2010. The minimum wage will then be replaced by minimum rates as specified under individual awards.
Overtime
All employees who work extra hours have to be paid overtime if they work outside the usual hours of work, more than 38 hours per week or more than 152 hours in any 28-day period.
Penalty rates
Penalty rates can apply to:
- Employees working unsocial, irregular, or unpredictable hours;
- Employees working on weekends or public holidays;
- Shift workers.
Other clauses in the 10 Minimum Employment Conditions
- Types of employment, (full-time, part-time, casual);
- Arrangements for when work is performed,
- Allowances,
- Superannuation and
- Procedures for consultation about changes to workplace conditions, representation and dispute settlement.
Extra possible inclusions
- Probation period (standard is three months);
- Notice periods during probation periods and regular employment;
- Dress and communication standards.
