Employment Contracts for Employers
For employers, the employment contract is your first line of protection. A compliant, well-drafted contract reduces the risk of underpayment claims, protects your business, and sets clear expectations from day one.
The stakes are significant. The Fair Work Ombudsman has become increasingly active in pursuing underpayment and non-compliance, and the maximum civil penalties for serious contraventions are substantial, particularly for companies. Many underpayment problems trace back to a poorly drafted contract, an incorrect Award classification, or a set-off clause that doesn’t work. We cover these in detail in our guide to the 7 employment contract mistakes that expose employers to Fair Work penalties.
We help employers by drafting compliant employment contracts and workplace policies, confirming the correct Award coverage and classification, ensuring salary arrangements properly account for Award entitlements, and protecting the business with enforceable confidentiality and restraint of trade provisions. If a dispute does arise, we can act for you, including in unfair dismissal and other workplace claims.
Employment Contracts for Employees
If you’ve been offered a job or asked to sign a new contract, it’s worth understanding exactly what you’re agreeing to before you commit. Some contracts contain terms that are unfair, unclear, or in some cases unenforceable.
We help employees by reviewing and explaining the contract in plain language, checking that the terms meet or exceed your NES and Award entitlements, advising on restraint of trade clauses (which are often narrower and less enforceable than they appear), and negotiating better terms where appropriate. If you’re facing a dispute over your contract or your employment has been terminated, we can advise you on your rights and options under our broader employment law service.
Why Choose Hills Solicitors
- Local knowledge since 1894: We’ve advised Hunter Valley employers and employees for over 130 years and understand the local business community.
- We act for both sides: Because we act for both employers and employees, we understand what fair, workable, and compliant contracts look like from both perspectives.
- Current with a changing law: Employment law has changed significantly in recent years, particularly around casual employment, fixed-term contracts, and restraints. We keep our advice current.
- Practical, plain-language advice: We explain your rights and obligations clearly so you can make informed decisions, across employment and business law.
Frequently asked questions about employment contracts
Is a written employment contract legally required in Australia?
A written contract is not strictly required for an employment relationship to exist, as verbal agreements can be binding. However, a written contract is strongly recommended for both employers and employees, because it provides certainty about the terms and protects both parties if a dispute arises. Regardless of whether there’s a written contract, the National Employment Standards and any applicable Modern Award still apply.
Can an employment contract pay less than the Award?
No. An employment contract cannot provide less than the minimum pay and conditions set by an applicable Modern Award or the National Employment Standards. Any term attempting to do so is unenforceable, and paying below Award rates can expose an employer to back-payment claims and significant penalties. A contract can pay more than the minimum, but never less.
Are restraint of trade clauses enforceable in NSW?
They can be, but only to the extent they are reasonable. A restraint that goes further than necessary to protect the employer’s legitimate business interests (in terms of duration, geographic area, or scope) may be read down or struck out by a court. In NSW, the Restraints of Trade Act 1976 gives courts particular scope to enforce restraints only to a reasonable extent. Whether a restraint is enforceable depends heavily on how it’s drafted and the specific circumstances.
Can my employer change my employment contract without my agreement?
Generally, an employer cannot unilaterally change the fundamental terms of your contract without your agreement. Significant changes usually require consultation and consent. However, contracts often include some flexibility for reasonable changes to duties or location. If your employer is trying to change your contract in a way you’re not comfortable with, it’s worth getting advice before agreeing.
What is the difference between a Modern Award and an employment contract?
A Modern Award is an industry or occupation-wide instrument that sets legally binding minimum pay and conditions. An employment contract is the individual agreement between an employer and employee. The contract sits on top of the Award and can provide better conditions, but it cannot undercut the Award. Both operate together, along with the National Employment Standards.
Do casual employees need a contract?
Yes. While casuals are engaged on a more flexible basis, a written casual contract is important to clearly identify the casual nature of the employment, the casual loading, and the arrangements around casual conversion. Recent changes to the Fair Work Act have reformed how casual employment is defined and how conversion works, so casual contracts need to reflect the current law.
Does Hills Solicitors act for both employers and employees?
Yes. We act for both employers and employees across Maitland and the Hunter Valley, including East Maitland, Rutherford, Thornton, Kurri Kurri, Cessnock, and the broader Newcastle region. Acting for both sides means we understand what fair and compliant employment contracts look like from every perspective.
Get Your Employment Contract Right
Whether you’re an employer protecting your business or an employee making sure you understand what you’re signing, a properly drafted employment contract is worth getting right. The cost of advice is small compared to the cost of an underpayment claim, an unenforceable restraint, or a dispute over unclear terms.
Hills Solicitors has been advising Hunter Valley employers and employees since 1894. We’ll make sure your contract is compliant, clear, and protects your interests.
Book a consultation with our employment law team today, or call us on (02) 4933 5111. Check our FAQ page if you have any questions.
