In Australia, employment contracts are crucial for defining the terms and conditions of employment between an employer and an employee. By law, these contracts can be verbal or written, but written contracts are highly recommended for clarity and legal certainty. Employment contracts must comply with the National Employment Standards (NES) and any relevant awards or enterprise agreements. 

They typically fall into several categories:

• Full-time contracts: For employees who work, on average, 38 hours per week. They are entitled to all NES protections and benefits, including annual leave, sick leave, and family and domestic violence leave. 

• Part-time contracts: For employees who work regular hours each week, but less than 38 hours. They receive annual leave and sick and carer’s leave on a pro-rated basis, as well as 10 days’ paid family and domestic violence leave.

• Casual contracts: For employees who work irregular, non-guaranteed hours. Under awards and agreements, casual employees typically receive a casual loading, or a higher pay rate, in exchange for not receiving paid annual leave. Under the NES, casual employees are still entitled to a chance to become permanent employees, as well as two days’ unpaid carer’s leave, two days’ compassionate leave, paid family and domestic violence leave, and unpaid community service leave.

• Fixed-term contracts: For full-time or part-time employees contracted to work for a specific duration with an agreed-upon end date. Fixed-term employees are entitled to the same wages, penalties, and leave as permanent employees. As of December 1, 2023, these contracts cannot last longer than two years, including extensions and renewals, and can’t be extended or renewed more than once.

Employment contracts should include the following key elements:  

• The employer and employee’s names and addresses

• The job title, duties, and responsibilities

• Where work is performed (and specify if the employer or employee determines this)

• The employee’s usual working hours (per day or per week) and any expectations of overtime

• Salary or wage details, including amount, payment periods, and superannuation contributions

• Vacation and leave entitlements

• The length and conditions of the probation period, if applicable

• Duration of the contract, if fixed-term

• Terms related to ending the employment contract (i.e. termination)

• Reference to applicable award or enterprise agreement employment terms, and

• Any other terms and conditions agreed to between the parties.