Employment contracts are really important to set out the terms and conditions of employees. Join us as we dive into why employment contracts are vital, some common mistakes made by business owners, and the process of creating or revising employment contracts.

Why Are Employment Contracts Important?

Employment contracts play a significant role in human resources and business management. They provide a structured foundation for employer-employee relationships. While there is no legal requirement for employment contracts, having them in place is considered best practice. These employment contracts outline expectations, entitlements, and responsibilities, reducing the likelihood of disputes and misunderstandings. Providing the contract to your employees before they start allows for any questions or concerns to be addressed and resolved proactively before they commence work with you.

Common Mistakes and Oversights 

There are a few common mistakes that business owners make when it comes to employment contracts: 

1. Doing It Themselves: While online templates are available, they may not cover all the necessary details. Hiring a professional ensures that the contract is tailored to the specific needs of the business.

2. Using Outdated Contracts: Relying on outdated contracts can lead to discrepancies and issues. Contracts should be kept up to date and aligned with current legal requirements. 

3. Not Seeking Advice: Employment contracts are legally binding documents, and it’s crucial to consult an HR expert to ensure compliance with all relevant laws and regulations. 

The Process of Creating or Revising Employment Contracts 

If you’re looking to create or revise employment contracts, here’s how our process works:

1. Consultation: We start with a conversation to understand your specific needs and requirements. 

2. Decide on what you need: Based on your needs, we can talk through your requirements and which contract suits best. 

3. Information Gathering: You’ll receive a form to complete with essential details, such as business information, employee details, salary, start date and other relevant information.

4. Contract Preparation: Once we receive the necessary information, the employment contract will be fully prepared. 

5. Delivery: Once we have completed your employment contract order, we email you with a link to a Dropbox folder that has your contracts and associated documents. Employment contracts can be provided to your employees in person or via email, ensuring they are in PDF format for security. An electronic onboarding system option is also available at an additional cost.  

Employment contracts are the foundation of a successful HR strategy. They provide clarity, security, and a framework for managing the employer-employee relationship. If you’re a business owner and you have have employees without employment contracts, it’s never too late to implement them. To ensure you have the right contracts in place, consider seeking professional advice and using templates that align with current legal standards. 

For further expert advice on human resources or if you have any questions about anything HR related, get in touch.

Karen Hillen is your HR Partner, she helps businesses by providing HR support and advice services.

For the right HR support and advice, book a My HR Partner HR Advice call with Karen Hillen.

https://booking.myhrpartner.com.au/15minute-hr-advice-call
https://booking.myhrpartner.com.au/30minute-hr-advice-call

My HR Partner memberships provide 24/7 access to employment contracts, HR policies and documents, and HR advice calls. These services are tailored to the member’s needs and can be accessed on demand through phone or email for performance management issues, pay rates and Award advice.

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