Written Contracts – Are they necessary?

Many employers don’t think they need a written contract, especially when the employee is covered by an award.

The terms and conditions of employment come from three main sources, legislation, awards, and common law.

Having a written contract can put all the relevant information in one place and make it easier for the employer and the employee to only have one place to look to see what they are obliged to do rather than trying to locate a copy of the relevant award, the National Employment Standards (found in the Fair Work Act, 2009) and common law obligations (found in court decisions).

The contract can clarify the hours of work required, the classification under which the employee is engaged, the pay rate that will be paid, and confirm the leave entitlements. In agriculture, with seasonal demands creating high workloads, it is possible in a written contract to set out when annual leave can be taken, when hours of work may fluctuate, and to whom the employee reports.

The employment relationship is not enhanced if the employer and employee are constantly arguing over what they believe their entitlements and responsibilities are.

Primary Employers Tasmania can help you put in place written contracts that protect both parties.