Employment contracts explained


An employment contract is an agreement between you and your employee. It can be written or verbal, but a clearly written contract can help:

  • you both to understand your employee’s rights to certain pay and conditions
  • manage your employee’s expectations of their new role
  • protect your business, for example, through confidentiality and intellectual property terms.

Your employment contract must provide your employee with, at least, their minimum legal entitlements. You can find these in the National Employment Standards (NES) and the relevant industry award or agreement (if one applies). But you can always choose to provide more generous terms and conditions.

Create an employment contract

Use our Employment Contract Tool to build your own employment contract. This tool is for employees covered by an award under Australia’s Fair Work system.

Before you start, make sure:

  • you know the type of employee you’re hiring (e.g. part-time, full-time or casual)
  • your employee is under an industry award
  • you’re paying an hourly or weekly wage.
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