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HR Essentials: Employment Contracts Presented by Kristin Ramsey Associate Director
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2 Session Overview
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Session overview Industrial framework Preliminary considerations Content Drafting for flexibility Offers of employment Contract administration Emerging Areas Top tips 3
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4 Industrial Framework
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Hierarchy LegislationEBA/AwardEmployment ContractPolicies/Procedures 5
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Format LOE Standard terms & conditions Policies & procedures 6
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Risks from poor drafting Confusion over terms Disputes over interpretation Inadvertent creation of entitlements Reasonable notice claims Policies and other documents incorporated Absence of protective provisions Limited ability to amend/change Termination disputes 7
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8 Preliminary Considerations
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Preliminary considerations Contract Type Legal landscape Nature of organisation Audience Anything special or unique? 9
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Type of contract Relationship: employee, contractor, other? Status: full time, part time, casual Duration: ongoing, fixed term, fixed task 10
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Legal landscape Which Awards? Underpinned by an EBA? Applicable legislation? Other industry requirements/guidelines? 11
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Nature of organisation Industry Type of work Key issues Desired arrangements 12
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Special or unique? 13
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Audience Age Education level Language skills 14
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15 Content
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16 Basics Specific purpose
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17 Don’t want to see it !
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Basics Position/classification Employment status Tenure Commencement date Location Probation Hours General duties & responsibilities 18
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Basics Remuneration Expenses Leave entitlements Public holidays Compliance with policies Confidentiality Intellectual property 19
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Basics Suspension Abandonment Termination Post termination 20
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Special purpose Recognition of previous service Relocation Bonuses/incentives Other benefits Restraint Preconditions Dispute resolution Other? 21
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Machinery clauses Offsetting Applicable award Interaction with other instruments Right to work in Australia Warranties Definitions Variation Continuation of terms Law of the contract 22
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Implied terms Work/wages bargain Obey lawful and reasonable directions Good faith and fidelity Indemnify against expenses Safe working environment Reasonable notice Mutual trust and confidence 23
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You really shouldn’t … Detailed processes and procedures Highly variable/changeable matters Incorporation of other instruments 24
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Now is NOT the time to 25
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26 Drafting for flexibility
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Flexibility Express ability to vary with notice/consultation Leave details for policy documents Ensure additional benefits discretionary 27
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28 Making offers of employment
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Offers of employment √ Be 100% certain √ Have the contract ready √ Include any preconditions in contract √ Be careful when explaining terms √ Encourage to seek independent advice √ Insist on signed contract before commencement 29
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30 Contract Administration
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Use of templates Greater efficiency and consistency Suitably tailored Understanding of content Risk management process Regular review 31
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New contracts for existing staff When –significant change How –consideration –conditional Potential adverse action territory! 32
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33 Emerging issues
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Absorbing superannuation increases Policy and other document incorporation Bonuses Relevance of probation Salary packaging/offsetting Contract renewal Implied term of trust and confidence 34
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35 Top Tips
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Invest in a good set of templates Don’t amend without considering consequences Review templates every 1 – 2 years Get signed contract before commencement Encourage independent advice Written variation every time there is a change Don’t pressure to vary/sign new contracts Refer to and comply with the contract! 36
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Questions? 37 Questions? Kristin Ramsey Associate Director kristin.ramsey@hyneslegal.com.au
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