When it comes to employment in Australia, there are a variety of different types of contracts that can be used. One of the most common is the common law employment contract.
A common law employment contract is an individual agreement between an employer and employee that is not covered by any specific industry award or agreement. Instead, the terms and conditions of the contract are negotiated and agreed upon by both parties.
These types of contracts are becoming increasingly popular in Australia, as they offer both employers and employees greater flexibility when it comes to employment arrangements. They allow employers to tailor contracts to the specific needs of their business, and employees to negotiate terms that better suit their individual circumstances.
Despite their flexibility, common law employment contracts must still comply with the minimum standards set out in the Fair Work Act 2009. These standards cover things like minimum wages, working hours, and leave entitlements.
One of the key benefits of a common law employment contract is that it can offer greater job security, as the terms of the contract are legally binding. It can also provide more clarity around issues like termination and redundancy.
However, it’s important to note that common law employment contracts can be complex, and it’s essential to seek legal advice before entering into one. Both parties should fully understand the terms of the contract before signing, as once signed, it is difficult to change the terms.
In summary, common law employment contracts are a popular way for employers and employees to negotiate individual employment arrangements that are tailored to their specific needs. While they offer greater flexibility, they must still comply with the minimum standards set out in the Fair Work Act 2009, and it’s essential to seek legal advice before entering into any contract.