The Importance of Employment Contracts

Sydney is Australia’s largest city in terms of population, with 4.926 million residents. Sydney is also Australia’s economic hub and is the home to numerous businesses that employ ninety-four percent of the city’s working-age population. The Sydney government closely monitors employee-employer relationships and has mandated that these relationships are defined in employment contracts. 

Your business needs to hire an employment lawyer in Sydney to create employment contracts for your business. An employment contract is an important tool to let your employees know the legal relationship they will have with your company. This contract will guarantee that your company’s interest is protected and that the employee’s role in the company is defined. Employee contracts will also detail your employees’ responsibilities as well as the benefits that they will get while they are still under your employ. Moreover, employment contracts are important for the following reasons. 

Defining Working Periods

Training new employees will usually involve a lot of investment in both time and money. When you are spending money on new employees’ training, it is only logical that you want your investment to reach its fruition. An employment contract will bind a new employee to work for a set amount of time for this employee to practice and apply the set of skills learned during the training. Likewise, employment contracts will protect your business from losses, such as new employees leaving your company after just working for a short period. An employment lawyer in Sydney will ensure that your contract will have a condition that an employee must continue working for you for a period where you can already get an ROI from training them. 

Protecting Confidentiality

If your business relies on keeping proprietary secrets, then an employment contract will ensure that your employees keep sensitive and confidential company monitoring software information a secret. One way of ensuring that employees will not leak sensitive information to the public is by including a clause in your contract that you will take legal actions against any employee that breaches your business’s secrecy or non-disclosure law. 

Define Working Standards

An employment contract will also dictate how your employees should behave and perform during their employment in your company. This contract is useful when you need to suspend or take action against any of your consistently underperforming employees. Likewise, you can define your employees’ work schedules in your contract, such as giving them flexible time schedules that they can choose while still maintaining a fixed number of productivity hours. 

Define Salary Scale

Employment contracts will also include the pay scale of your employees. This ensures that your employees will know what to expect in future salaries with a good performance during their employment in your company. When you have a clearly defined pay scale along with a performance rating for your employees, you will be protected against employees complaining of not getting a raise. You can show an employee the stipulations in the contract about giving out pay increases that will depend on their performance evaluations. 

Set Days Off

Every full-time employee in Sydney is entitled to ten days of paid sick and carer’s leave per year. An employee may accumulate the number of unused sick days per year. Businesses may not change the minimum number of entitled sick days. However, you may decide to give your employees more paid sick days as part of your benefits to attract more qualified personnel. 

An employment contract drawn up by an employment lawyer in Sydney is an important tool in establishing a relationship between your business and your employee. 



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