Why your business needs employment contracts
If your business does not use written employment contracts it could be at risk of issues regarding underpaying employees.
MEA highly recommends all businesses use written employment contracts.
A contract is a useful tool to ensure the employer and employee understand the conditions of employment.
There are multiple types of employment contracts, each of which have different uses.
Full-time workers are permanent employees that generally work 38 ordinary hours per week. Full-time employees are entitled to annual leave, sick leave, and long-service leave, and required to be given notice of termination.
Part-time employees work regular hours, but fewer than the full-time 38 hours every week. Like full-time workers they are employed on a permanent basis and are entitled to the same conditions as full-time staff.
Casual employees do not work regularly set hours but instead work as needed by an employer. They are paid for the worked hours and have the right to refuse shifts. Unlike full-time or part-time employees, employers do not have an obligation to casual workers for ongoing employment. They also do not accrue leave benefits.
A fixed-term employee has a contract to specifically work for a certain period, or for specific project. The contract must outline the state the length of employment. Fixed-term workers have the same leave entitlements as full-time employees.
An employment contract sits next to the award structure. It cannot replace and cannot be less generous than the award conditions.
It is also important to understand what an employment contract cannot exclude – for example: certain leave provisions, unfair dismissal provisions, or a union’s right of entry.
How the MEA Employer Advice Team can help:
- What type of employment contract suits your situation?
- What needs to be in an employment contract?
- What can and can’t be included in employment contracts?
- What salary provisions should be included in an employment contract? What does paying over the award rate mean?
MEA can provide templates for a range of different employment including casual, full time, apprentices, clerical staff, qualified electricians, and other electrical workers.
The MEA Employer Advice Team can provide Master Electricians with a range of advice regarding employment contracts, help review employment contracts and assist with any questions. You can speak to the team by calling 1300 889 198. Unlimited calls, no cost. It’s just one of the many benefits of being a Master Electrician
Become a Master Electrician today for unlimited access to the MEA Employer Advice Team. Phone 1300 889 198.