This subtopic provides three key employment/work precedents: permanent employee, casual employee and contractor. It also includes guidance on adapting/using these precedents in-house.

Even though employment agreements can be oral, it is highly advisable to enter into a written employment agreement. The contract will be subject to legislation and the terms of any applicable modern award, enterprise agreement or other industrial instrument.

Where there is an oral employment contract as well as a written employment contract, there is case law to suggest that the written employment contract varies and supplements rather than rescinded the oral employment contract.

See General drafting notes.

In all states except for Western Australia, the principal legislation relating to employment contracts is the Fair Work Act 2009 (Cth) which, among other things, establishes a basic safety net, that is, minimum standards (the NES), for employees. It is useful to note that the NES underpins modern awards (available at the Fair Work Commission website). When drafting or reviewing an employment contract, you will need to refer to the relevant modern award to determine minimum wage entitlements, relevant hours of work and other entitlements.

This guidance note provides information in relation to the use of the supplied Permanent employee agreement.

See Permanent employee agreement.

This guidance note provides information in relation to the use of the supplied Casual employment agreement, which is used for employees who are not permanent employees.

See Casual employee agreement.

This guidance note provides information in relation to the use of the supplied Contractor agreement, which is used in the case of a person or entity contracting to perform services for a principal without the legal status of being an employee.

See Contractor agreement.