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Contracts and conditions

There are several types of employment. As an employer you need to work out what best suits your business.

The options include:

  • part-time or full-time under a permanent arrangement
  • temporary work, usually through an employment agency
  • casual, when ongoing employment is in doubt
  • fixed term contract for a defined period.

On this page:

Letter of employment
What is an employment contract?
What about the salary?

Letter of employment

Whatever type of employment is chosen, a letter outlining the conditions is a good idea. It should contain:
  • job title and brief description of the role
  • details of the agreed salary and reference to the appropriate award, if applicable
  • hours of work
  • superannuation, annual leave, long service and sick leave entitlements
  • overtime requirements
  • notice period for termination
  • confidentiality clause
  • probation period.

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What is an employment contract?

This is an agreement that describes the terms and conditions and period of employment. The benefits include:
  • job security and greater certainty for both parties
  • defined outcomes over a specific timeframe
  • an understanding of working hours, codes of behaviour, confidentiality etc
  • clarity over entitlements
  • restrictions over the use of confidential information.
There are also some negatives:
  • cost and time in drafting the document
  • the working arrangement may be less flexible
  • employees may look elsewhere towards the end of the contract
  • the terms and conditions may deter potential employees.

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What about the salary?

Employers need to be competitive to attract good staff without paying too much.

If the position is not covered by an award, do some research. Ask an advisor or industry association, or check recruitment advertisements. Salaries may include:
  • a base income paid according to the hours worked
  • commission based only on achievement of sales targets
  • a combination of both.

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More information

On this site
Contract law

Other websites

State awards - SafeWork SA
Youth at work - SafeWork SA
National awards - Fair Work Australia

Downloads
Employment contracts and remuneration - an overview (PDF 248KB) - BizFacts
National employment standards (PDF 134KB) - Fair Work Australia

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