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Common Law Employment Contracts Australia

When it comes to employment contracts in Australia, the most common type is a common law employment contract. This type of contract is created on the basis of custom, tradition, and judicial decisions instead of being expressly created by legislation.

A common law employment contract is formed when an employer and employee agree to the terms of employment, either verbally or in writing. It is not a requirement for a written employment contract to be signed, but it is highly recommended that all terms and conditions of employment are documented in writing. This ensures that both parties are clear on their rights and responsibilities.

The terms of a common law employment contract can be negotiated between the employer and employee. However, there are certain statutory obligations that must be met by employers, such as paying the minimum wage, providing a safe work environment, and adhering to anti-discrimination laws.

A common law employment contract may include terms such as the employee’s job description, salary or wages, leave entitlements, notice period, and termination conditions. It may also include provisions for confidentiality, intellectual property ownership, and post-employment restraints such as non-compete clauses.

One of the benefits of a common law employment contract is the flexibility it provides to both parties. Employers can tailor the contract to suit the specific needs of their business and employees, while employees have the opportunity to negotiate terms that are important to them.

However, it is important to note that there are certain risks associated with a common law employment contract. If the terms and conditions of the contract are not clearly defined, it can lead to disputes and potential legal action. This is why it is important for both employers and employees to seek legal advice before entering into a common law employment contract.

In conclusion, a common law employment contract is the most common type of employment contract in Australia. It provides flexibility for both employers and employees, but it is important to ensure that all terms and conditions are clearly defined to avoid potential legal disputes. Legal advice should be sought before entering into any employment contract to ensure that all parties are protected.