HR Essentials: Employment Contracts Presented by Kristin Ramsey Associate Director

2 Session Overview

Session overview Industrial framework Preliminary considerations Content Drafting for flexibility Offers of employment Contract administration Emerging Areas Top tips 3

4 Industrial Framework

Hierarchy LegislationEBA/AwardEmployment ContractPolicies/Procedures 5

Format LOE Standard terms & conditions Policies & procedures 6

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

8 Preliminary Considerations

Preliminary considerations Contract Type Legal landscape Nature of organisation Audience Anything special or unique? 9

Type of contract Relationship: employee, contractor, other? Status: full time, part time, casual Duration: ongoing, fixed term, fixed task 10

Legal landscape Which Awards? Underpinned by an EBA? Applicable legislation? Other industry requirements/guidelines? 11

Nature of organisation Industry Type of work Key issues Desired arrangements 12

Special or unique? 13

Audience Age Education level Language skills 14

15 Content

16 Basics Specific purpose

17 Don’t want to see it !

Basics Position/classification Employment status Tenure Commencement date Location Probation Hours General duties & responsibilities 18

Basics Remuneration Expenses Leave entitlements Public holidays Compliance with policies Confidentiality Intellectual property 19

Basics Suspension Abandonment Termination Post termination 20

Special purpose Recognition of previous service Relocation Bonuses/incentives Other benefits Restraint Preconditions Dispute resolution Other? 21

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

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

You really shouldn’t … Detailed processes and procedures Highly variable/changeable matters Incorporation of other instruments 24

Now is NOT the time to 25

26 Drafting for flexibility

Flexibility Express ability to vary with notice/consultation Leave details for policy documents Ensure additional benefits discretionary 27

28 Making offers of employment

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

30 Contract Administration

Use of templates Greater efficiency and consistency Suitably tailored Understanding of content Risk management process Regular review 31

New contracts for existing staff When –significant change How –consideration –conditional Potential adverse action territory! 32

33 Emerging issues

Absorbing superannuation increases Policy and other document incorporation Bonuses Relevance of probation Salary packaging/offsetting Contract renewal Implied term of trust and confidence 34

35 Top Tips

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

Questions? 37 Questions? Kristin Ramsey Associate Director