Position title

e.g. Accounts manager, Sales assistant

Enter position title

Click anywhere outside the input field to update the clause preview box below.

Position title clause

Included

You are being employed in the position of [position title].

Clauses marked as "Included" will be added to your employment contract.

Tip

If you've already recruited someone, use the position title (or job title) you provided during your recruitment process.

The position title should reflect the work your employee will do. You may also find examples of job titles under the applicable award in the classifications section.

Duties

You should provide your new employee with a description or outline of their duties and responsibilities so they understand what they're being employed to do.

You may attach your employee's duties and responsibilities in a separate position description, or outline them here within the contract.

Select an option

Duties clause

Included

You will perform the duties described in the attached position description as required.

We may also assign you other duties, where reasonable for your position, training and experience.

Duties / Position description

If you provided a position (or job) description during your recruitment process, you can use this. If you don't have a position description yet, you can download the job description template from the Fair Work Ombudsman website and fill it in later.

Enter duties and responsibilities

Duties clause

Included

You will perform the following duties as required:

[duties and responsibilities]

We may also assign you other duties, where reasonable for your position, training and experience.

Award for your employee

If you're not sure which one applies, use the Fair Work Ombudsman's Find my award tool.

Select award name

Employment terms and conditions clause

Included

Your employment terms and conditions are those set out in this contract, the [award name] and applicable legislation. This includes the National Employment Standards in the Fair Work Act 2009.

You can check the minimum award entitlements for your classification level with the Fair Work Ombudsman's Pay and Conditions Tool.

What's an award?

The award sets the minimum terms and conditions for your employee. Keep in mind that you can always provide more generous conditions.

Your employee's pay and other entitlements will depend on their classification level in the award and their employment type. Awards are regularly updated, so make sure you keep up to date with your employee's entitlements.

Subscribe to email updates from the Fair Work Ombudsman to stay up to date with any changes to your award.

Business structure

We need to know your business structure to determine the signature fields to include in your contract. This information is not shared with any other agency, for more information see our Privacy page.

Select business structure

Unsure of your business structure?

If you're unsure of what your business structure is, search for your business on ABN Lookup. Your business structure is displayed against the 'Entity type' field.

If none of the business structure options apply to your business, select 'other'.

Workplace

Where is the employee’s main place of work?

You may fill in the employee's workplace address here and it will appear in the contract. Or, insert the workplace address later by editing the contract.

Select an option

Workplace clause

Included

You will be required to work at

[workplace address]

You may also be required to work at other locations where reasonable.

Where is the employee’s main place of work?

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

Workplace address

Enter an address

Enter a city/suburb

Select state or territory

Enter a postcode

Enter a whole number.

You reached the limit of 10 fields. You can add more information to your contract after you download it.

Workplace clause

Included

You will be required to work at

[Workplace address]

You may also be required to work at other locations where reasonable.

Employment type

Select the type of employee you're hiring

It's important you get this right. The pay rates, leave and other entitlements for each type can differ, so it will change what you need to include in your contract.

Select type of employee

Employment type clause

Included

You are being employed on a [employment type] basis.

Employment type clause

Included

You are being employed on a [employment type] basis, as required.

As a casual employee, we do not guarantee the days or hours you’ll work or how long you’ll be employed for. We do not commit to providing you with work that will continue indefinitely with an agreed pattern of work.

We may choose to offer you work and you may accept or refuse our offer. You will be paid a casual loading.

In some circumstances you may have the right to become a permanent employee (known as 'casual conversion').

Rules for casuals

When engaging someone as a casual, you need to:

Make sure you understand the obligations for casual employment outlined on the Fair Work Ombudsman website.

Types of employees

  • Full-time employees usually work 38 hours per week on average. They may work slightly less or more some weeks. They can be permanent (ongoing) or employed for a fixed term (for example, a 6 month contract).
  • Part-time employees usually work less than 38 hours per week on average. They usually work regular hours each week and can be permanent or employed for a fixed term.
  • Casual employees accepted an offer of employment on the basis that there was no firm advance commitment that the work will continue indefinitely with an agreed pattern of work. They are usually described as a casual employee in their employment contract, work as required to your business needs and can refuse any hours of work you offer them. They are paid a casual loading because they don't get some paid entitlements like personal and annual leave.

Learn more about the different types of employees on the Fair Work Ombudsman website. You should also check the award – some define employment types differently.

Employment dates

Do you want to provide a start date only, or are you employing for a fixed period of time?

Select permanent or fixed term role

Rules for fixed term contracts

When engaging someone on a fixed term contract, you need to follow important rules. This includes giving them the latest version of the Fixed Term Contract Information Statement.

Make sure you understand the obligations for fixed term contract employees outlined on the Fair Work Ombudsman website.

Enter the date in the format dd/mm/yyyy

Select start date

Please enter a valid date. Date format must be dd/mm/yyyy.

Employment dates clause

Included

Your start date will be [start date].

Enter the date in the format dd/mm/yyyy

Select end date

Please enter a valid date. Date format must be dd/mm/yyyy.

The end date must be later than the start date.

Employment dates clause

Included

You are being employed on a fixed term basis until [end date], unless terminated earlier in accordance with the terms of this contract.

Probation period

You can put your employee on probation to assess whether they're suitable for the position.

The length of the probation period is up to you, but it must be reasonable. It's often between 3 to 6 months.

month(s)

Enter number of months probation (the number must be greater than or equal to 1)

Enter a whole number.

Probation period clause

Optional to include

You will need to complete a [number]-month probation period. During this time, we will assess your performance.

If we end your employment during the probation period, we will provide written notice according to the notice clause in this contract.

Provide the same entitlements

While on probation, your employee still gets the same entitlements as someone who isn't on probation, including leave.

If your employee doesn't pass their probation, you'll still need to give them:

  • notice when their employment ends
  • payment for any unused annual leave.

Find out more about employee probation periods on the Fair Work Ombudsman website.

Unfair dismissal and probation

If you end their employment, the employee can challenge the dismissal with the Fair Work Commission if they think it was 'unfair' (harsh, unjust or unreasonable).

Employers usually set a probation period of no more than the minimum employment period for unfair dismissal claims. These are:

  • 12 months if you have a small business with fewer than 15 employees
  • 6 months if you have a business with 15 or more employees.

Hours of work

The maximum ordinary hours can vary between awards. Check the maximum ordinary hours allowed per week by selecting the award on the Hours of work page. If your award isn't listed, choose 'Other' then find it in the linked list of awards.

Full-time employees usually work an average of 38 ordinary hours per week, part-time employees work less.

hour(s) per week

Enter number of hours per week (the number must be greater than or equal to 1)

Can't have more than 2 decimal places.

Hours of work clause

Included

You are expected to work [number] ordinary hour(s) per week. We may also request or require you to work additional hours if the additional hours are reasonable.

Check the award for hours

The award sets out the:

  • maximum ordinary hours your employee can work in a period (e.g. in a day, week or month)
  • minimum hours per shift
  • times ordinary hours can be worked (e.g. from 7am to 7pm) – the spread of hours.

There are also state and territory work health and safety (WHS) rules around work hours to protect employee safety (e.g. to manage fatigue). You can check these with your local WHS regulator.

If your employee works outside ordinary hours, you may have to pay them extra, e.g. overtime or penalty rates.

Some awards allow for ordinary hours to be averaged over a roster cycle and don’t need to be the same number of hours each week, for example a 2 week or 4 week roster cycle.

A casual employee does not have a firm commitment in advance from their employer to ongoing work with an agreed pattern of work.

Hours of work clause

Included

As a casual employee, your hours may vary depending on business needs.

Will the employee be a shiftworker?

Whether your employee is considered a shiftworker will depend on the award they are under. Check the award definition of a shiftworker for their award – they're not all the same. If the award isn't listed, choose 'Other' then find it in the linked list of awards.

Select shiftworker status

Shift work

Check the award rules for shiftworkers – different awards allow different shift types. Select the shifts from the award that apply. If your award isn't listed, choose 'Other' then find it in the linked list of awards.

Select type of shifts

Shift type clause

Included

At the start of your employment, you will be rostered to work [shift type] shifts in accordance with the award. The shifts you work may be changed later in accordance with award rules about changing hours of work, rosters and consultation.

Rules for shiftworkers

Awards usually set out the:

  • definition of what a shiftworker is – this can vary between awards and for different purposes, and may affect other entitlements such as annual leave, shift loadings, overtime and penalties
  • type of shifts employees can work, and in what combinations
  • ordinary hours of work for shiftworkers.

For example, under the Clerks – Private Sector Award 2020, shiftworkers are required to work their ordinary hours on any of the following shifts:

  • afternoon shifts – shifts finishing after 7pm and at or before midnight
  • night shifts – shifts finishing after midnight and at or before 7am
  • permanent night shift – a night shift that doesn't rotate with another shift or day work and which continues for a period of 4 consecutive weeks or longer.

There are also different rules for shiftworkers under the Clerks Award about, for example, breaks, overtime and penalties.

Check the rules for shiftworkers under your employee's award.

Enter other type of shift

Shift type clause

Included

At the start of your employment, you will be rostered to work the following shifts in accordance with the award:

[shift type].

The shifts you work may be changed later in accordance with award rules about changing hours of work, rosters and consultation.

Select the days that you may ask the employee to work:

Select possible shift work days

Work days clause

Included

We may ask you to work shifts on the following days: [days].

Flexible hours

Include this clause to provide for employee requests to work flexible hours.

Flexible hours clause

Optional to include

You may have a right to make a written request for flexible working arrangements under the National Employment Standards, including for when to start and end work each day or your location of work. We may refuse your request in writing, but only if we have reasonable business grounds.

Why provide flexible hours?

Flexible hours can help support a positive employment relationship. For example, you might allow your employee to start and finish work earlier on some days to pick their child up from school.

Some employees are legally entitled to request flexible working arrangements (including flexible hours and patterns of work). You can only refuse these requests if you have a good business reason.

The right to request flexible working arrangements is a minimum entitlement in the National Employment Standards. You can’t set conditions that are less than or exclude the National Employment Standards.

Find out more about flexible working arrangements on the Fair Work Ombudsman website.

Averaging hours over more than a week

This allows averaging of the employee's ordinary hours over more than one week. This means they can work more one week and less in another. Check the award for specific rules around averaging hours before you select this clause. If your award isn't listed, choose 'Other' then find it in the linked list of awards.

Averaging hours clause

Optional to include

Your hours per week may be averaged over more than one week in accordance with the award.

Example

Cindy works in a café so is under the Restaurant Industry Award. She averages her 38 hours a week by working 76 hours over 2 weeks. She works 42 hours the first week, and 34 hours the second week. 42 + 34 = 76 hours. So over 2 weeks she works an average of 38 hours per week.

This arrangement is also consistent with other rules in the Restaurant Industry Award about ordinary hours of work.

On call or stand-by

Include this if you'll sometimes want your employee to be on call (stand-by).

On call or stand-by clause

Optional to include

We may require you to be on call (on stand-by) for work outside your normal hours.

Your on call or stand-by conditions will be in accordance with the award, including:

  • rostering to be on call
  • pay rates or allowances when on call
  • pay rates if you are called out to work while on call.

On call rules

On call means your employee is ready and available to work if you need them outside their normal work hours. For example, plumbers, medical and technical staff are sometimes needed at short notice to work.

If you want your employee to be on call (on stand-by), be aware that there may be rules in the award for:

  • if and when you're allowed to roster your employee to be on call
  • pay rates or allowances when on call
  • pay rates if called out to work while on call.

So, make sure to check the award, regardless of your type of employee.

Rosters

Before you answer the following questions, check the award rules for rosters on the Fair Work Ombudsman's Rosters page. If your award isn't listed, choose 'Other' then find it from the linked list of awards.

e.g. 14 days (rosters are typically provided 7 or 14 days before they start).

day(s)

Enter number of days roster notice (the number must be greater than or equal to 1)

Enter a whole number.

Changes to rosters typically require 7 days' notice for full and part-time employees.

day(s)

Enter notice for employer changes to roster (the number must be greater than or equal to 1)

Enter a whole number.

e.g. 7 days.

day(s)

Enter notice for employee roster changes (the number must be greater than or equal to 1)

Enter a whole number.

Make sure you check the award. Some have rules around when to provide rosters and how many days' notice you need to change them.

Rosters clause

Optional to include

We will provide you with your days and hours of work in a roster at least [number] day(s) before the start of the roster.

If we need to change your roster, we will give you [number] days' notice or ask for your agreement to the change.

If you wish to ask for a change to your roster, we require [number] days' notice. You will need our agreement to the change.

Roster rules

A roster is a timetable that shows the days and times your employees are required to work.

Some awards have rules for rosters, including:

  • when and how you need to provide them
  • notice you need to give your employee to change their roster
  • how to change a roster
  • consultation with your employee about changes to their regular roster.

Your employee should also give you notice when asking for a change to their roster, and they'll need your agreement to the change.

Breaks

This provides a general clause in your employment contract about your employee's entitlement to breaks. Entitlements to breaks vary between awards, so check the award for details.

Breaks clause

Included

Depending on the number of hours you work, you may be entitled to meal breaks. The award sets out:

  • the length of the breaks
  • when they need to be taken
  • the rules about payment.

You may also be entitled to rest breaks.

Breaks vary between awards

Awards have different rules for rest breaks and meal breaks, including:

  • the length of the breaks
  • when they need to be taken
  • the rules about payment
  • what happens if you don't provide a break.

Find out more about breaks in your industry on the Fair Work Ombudsman website. If your award isn't listed, choose 'Other' then find it in the linked list of awards.

This provides a general clause in your employment contract about your employee's entitlement to breaks. Entitlements to breaks vary between awards, so check the award for details.

Breaks clause

Included

Depending on the number of hours you work in a shift, you may be entitled to meal breaks. The award sets out:

  • the length of the breaks
  • when they need to be taken
  • the rules about payment.

You may also be entitled to rest breaks.

Breaks vary between awards

Awards have different rules around rest breaks and meal breaks, including:

  • the length of the breaks
  • when they need to be taken
  • the rules about payment
  • what happens if you don't provide a break.

The award may also specify a minimum amount of time off between the end of one shift and the start of another.

Find out more about breaks in your industry on the Fair Work Ombudsman website. If your award isn't listed, choose 'Other' then find it in the linked list of awards.

This provides a general clause in your employment contract about your employee's entitlement to breaks. Entitlements to breaks vary between awards, so check the award for details.

Breaks clause

Included

Depending on the number of hours you work in a shift, you may be entitled to meal breaks. The award sets out:

  • the length of the breaks
  • when they need to be taken
  • the rules about payment.

You may also be entitled to rest breaks.

You are entitled to a minimum amount of time off between shifts as set out under the award. If you do not get this amount of time off, you may be entitled to penalty or overtime rates.

Breaks vary between awards

Awards have different rules around rest breaks and meal breaks, including:

  • the length of the breaks
  • when they need to be taken
  • the rules about payment
  • what happens if you don't provide a break.

The award may also specify a minimum amount of time off between the end of one shift and the start of another.

Find out more about breaks in your industry on the Fair Work Ombudsman website. If your award isn't listed, choose 'Other' then find it in the linked list of awards.

Pay rate

What is the employee’s rate of pay?

Select an hourly or a weekly rate of pay. Use the Fair Work Ombudsman's Pay and Conditions Tool to find minimum pay rates for your employee's classification level.

Select hourly or weekly wage

Use the Fair Work Ombudsman's Pay and Conditions Tool to find the minimum hourly rate for your employee's classification level. The Pay and Conditions Tool includes casual loading in the hourly pay rate.

$AUD per hour

Enter casual hourly wage rate (the number must be greater than or equal to 1)

Can't have more than 2 decimal places.

Award minimum rate

Enter an amount that, at least, covers the minimum award rate that applies to your employee's classification. Award minimum rates for juniors, apprentices, trainees or employees on a supported wage may be lower.

Pay clause

Included

You will be paid $[number] per hour. This pay rate includes casual loading at the percentage set out in your award. This loading is paid instead of entitlements that apply to permanent employees like paid personal leave and annual leave.

This pay rate does not include superannuation, we'll pay this separately.

Wages

Your employee's minimum wages are set out under the award – you must pay at least this amount. You'll also have to pay any applicable penalties, overtime, loadings and allowances.

The minimum wage depends on the employee's classification level in the award. You can find classification descriptions in the Pay and Conditions Tool or award.

It's important to pay the right amount. If you don't, you could face large penalties and have to back pay your employee.

Why salaries are not in the tool

A salary must at least cover your employee's minimum entitlements under the award and the National Employment Standards. To help ensure you meet the law, salary arrangements need to meet strict rules and record keeping requirements. This includes reflecting the specific requirements of the relevant award. You need sound financial and legal advice to be able to use a salary arrangement.

$AUD per hour

Enter hourly wage rate (the number must be greater than or equal to 1)

Can't have more than 2 decimal places.

Award minimum rate

Enter an amount that, at least, covers the minimum award rate that applies to your employee's classification. Award minimum rates for juniors, apprentices, trainees or employees on a supported wage may be lower.

Pay clause

Included

You will be paid $[amount] per hour. This pay rate does not include superannuation, we'll pay this separately.

Wages

Your employee's minimum wages are set out under the award – you must pay at least this amount. You'll also have to pay any applicable penalties, overtime, loadings and allowances.

The minimum wage depends on the employee's classification level in the award. You can find classification descriptions in the Pay and Conditions Tool or award.

It's important to pay the right amount. If you don't, you could face large penalties and have to back pay your employee.

Why salaries are not in the tool

A salary must at least cover your employee's minimum entitlements under the award and the National Employment Standards. To help ensure you meet the law, salary arrangements need to meet strict rules and record keeping requirements. This includes reflecting the specific requirements of the relevant award. You need sound financial and legal advice to be able to use a salary arrangement.

$AUD per week

Enter weekly wage rate (the number must be greater than or equal to 1)

Can't have more than 2 decimal places.

Award minimum rate

Enter an amount that, at least, covers the minimum award rate that applies to your employee's classification. Award minimum rates for juniors, apprentices, trainees or employees on a supported wage may be lower.

Pay clause

Included

You will be paid $[number] per week. This pay rate does not include superannuation, we'll pay this separately.

Wages

Your employee's minimum wages are set out under the award – you must pay at least this amount. You'll also have to pay any applicable penalties, overtime, loadings and allowances.

The minimum wage depends on the employee's classification level in the award. You can find classification descriptions in the Pay and Conditions Tool or award.

It's important to pay the right amount. If you don't, you could face large penalties and have to back pay your employee.

Why salaries are not in the tool

A salary must at least cover your employee's minimum entitlements under the award and the National Employment Standards. To help ensure you meet the law, salary arrangements need to meet strict rules and record keeping requirements. This includes reflecting the specific requirements of the relevant award. You need sound financial and legal advice to be able to use a salary arrangement.

Payment method

How often will you pay your employee?

Check how often you have to pay by selecting the employee's award on the Fair Work Ombudsman's Frequency of pay page. If your award isn't listed, choose 'Other' then find it in the linked list of awards.

Select payment frequency

How and when to pay

Most awards outline how often you must pay employees – generally it will be weekly or fortnightly, and it must be at least monthly. You must pay money. Do not 'pay in kind', for example, with goods or food.

You must give your employee a pay slip within 1 working day of paying them with certain required information on it. An incorrect or incomplete pay slip could be in breach of the law.

Learn more about paying wages and what you must include on a pay slip on the Fair Work Ombudsman website.

How will you pay your employee?

It's up to you which method you use, but record keeping might be easier if you pay electronically into a bank account.

Select payment method

Payment method clause

Included

We will pay you [weekly/fortnightly/monthly] [pay method].

Superannuation

To avoid the superannuation guarantee charge (SGC), you must pay super guarantee (SG) contributions for eligible employees:

  • at the correct amount in full
  • on time (by the quarterly due dates)
  • into a fund that meets the choice of fund rules.

Superannuation clause

Included

If you are eligible for the super guarantee (SG), we will pay the contributions on your behalf in accordance with legislation and your award. We will pay contributions into a super fund of your choice.

If you do not tell us your choice of fund, we may need to contact the ATO to find out if you have a 'stapled' super fund to make your SG contributions into.

If you do not tell us your choice of fund and the ATO confirms you don't have a stapled super fund, we will pay your SG contributions to our default fund or another fund that meets the choice of fund rules.

Is your employee eligible?

Generally, all employees are eligible for super guarantee (SG) regardless of how much they earn. It doesn’t matter if they are:

  • full time, part time or casual
  • receiving a super pension or annuity while working
  • a temporary resident, such as a backpacker
  • a company director
  • a family member working in your business.

Work out if you have to pay super on the ATO website.

How much to pay

The minimum SG rate is legislated to increase by 0.5% each financial year until it reaches 12% on 1 July 2025. Check the ATO website for the current super rate and for help calculating how much to pay.

You must also check your award for any extra super requirements. Some awards specify things like default super funds, higher contribution rates and how often you must pay super.

If you make additional contributions, be aware that your employee may have to pay extra tax if they get more than a certain amount of super in a year.

Make sure you pay in full, on time and to the right fund to avoid the super guarantee charge.

Which super fund to use

Most employees can choose the super fund they want you to pay into. If new employees do not nominate a super fund, you may need to contact the ATO to find out if they have an existing account ('stapled' super fund) to pay into.

Additional super contributions

Select this clause if the award requires additional super on top of the super guarantee (SG). If your award isn't listed, choose 'Other' then find it in the linked list of awards. If the award does not require additional super, you can choose whether to pay extra as an incentive to your employee.

%

Enter additional super percentage (the number must be greater than or equal to 0)

Can't have more than 2 decimal places.

Additional superannuation clause

Optional to include

In addition to the SG, we will contribute [number] percent of your base salary into super.

Penalty rates and overtime

Your employee may be entitled to overtime or penalty rates, depending on the hours they work. You must pay overtime or penalty rates if your employee is entitled to them, even if you do not include this clause.

Penalty rates and overtime clause

Optional to include

You may be entitled to overtime rates under your award if you work:

  • more than your ordinary hours of work
  • outside the spread of ordinary hours.

You may be entitled to penalty rates or shift loadings according to your award if you work:

  • on a weekend
  • on a public holiday
  • late night or early morning shifts.

Rules vary between awards

The rules around penalty rates and overtime differ between awards. Check the award for details (including pay rates).

Find out more about penalty rates and overtime on the Fair Work Ombudsman website.

Allowances

Include this to add a general allowances clause to your employment agreement. You must pay allowances if your employee is entitled to them, even if you do not include this clause.

Allowances clause

Optional to include

You may be entitled to allowances in accordance with your award, for example, if you:

  • do certain tasks or have a particular skill
  • have to use your own tools at work
  • work in particular conditions, environments or in remote locations.

Examples of allowances

Allowances are extra payments you may have to provide to your employee if they:

  • do certain tasks or have a particular skill (e.g. first aid)
  • use their own tools at work (e.g. hairdressers, chefs and some tradespeople)
  • work in certain conditions or environments (e.g. hot or cold conditions, at height (such as window cleaners on multi-storey buildings) or in remote locations).

Common allowances include:

  • first-aid
  • travel and fares
  • uniforms and special clothing
  • tools and equipment
  • car and phone
  • stand-by or on call.

To check for other allowances that might apply to your employee, use the Fair Work Ombudsman's Pay and Conditions Tool.

Commission

Include this if you plan to pay your employee commission on top of their wages or salary.

e.g. 'We will pay you a commission of 10% of sales if you reach a monthly sales target of $10,000.'

Enter commission arrangement

Commission clause

Optional to include

In addition to your base pay, we will pay you commission under the following arrangement:

[commission arrangement]

If we agree to change this commission arrangement during your employment with us, we will update this employment contract. Any changes to your commission arrangement will be made according to the requirements of the modern award which applies to you.

What commission is

Commission is an amount paid to your employee, usually based on how much they sell. It's often calculated as either:

  • a percentage of the employee's sales, or
  • an amount for reaching a sales target.

Commission rules

You can pay an employee commission as an incentive at any time, but the award may have rules about how you do this. For example, commission arrangements:

  • usually have to be in writing
  • may have record keeping and reporting rules (such as under the Vehicle Repair, Services and Retail Award).

Check for commission rules in your employee's award on the Fair Work Ombudsman website. If the award isn't listed, choose 'Other' then find it in the linked list of awards.

Your employee's commission arrangement will be set out in this employment contract. If you change the arrangement while they're working for you, you must update the employment contract. If you do not, you could face large fines or penalties.

A limited number of awards (e.g. the Real Estate Industry Award) allow commission-only arrangements where commission makes up the employee's whole wage. We don't provide for these arrangements in this contract.

Annual bonus

Include this if you want to use an annual bonus as an incentive to your employee.

Annual bonus clause

Optional to include

We may pay you an annual bonus at our discretion, taking into consideration your performance and other relevant business factors.

There is no guarantee that you will get a bonus, and you will not be eligible for one after your employment with us ends.

Why offer a bonus?

An annual bonus can be a great way to reward your employee's hard work throughout the year.

Whether you pay a bonus will be your decision, based on your employee's performance, how the business is going and other relevant factors.

Annual pay review

An annual pay review can help ensure you're paying your employee the right rate and keep them motivated.

Annual pay review clause

Optional to include

We will review your pay annually to determine whether you are eligible for an increase, taking into consideration:

  • your performance
  • the business's financial position.

Any increase in your pay, above your award entitlements, is our decision.

Benefits of a pay review

This is a good way to reward your employee's work over the year. It also helps ensure that you're keeping up with any award changes to minimum pay rates.

Make sure you keep paying, at least, your employee's minimum wage and other entitlements under the award at all times. Beyond this, it's your decision whether to increase pay based on your employee's performance and how your business is going financially.

Annual leave

This sets out your employee's entitlement to annual leave in your employment contract.

Annual leave clause

Included

You are entitled to 4 weeks of paid annual leave each year, based on your ordinary hours of work per week.

We will provide any applicable annual leave loading entitlements in accordance with your award.

Annual leave accumulates during the year. Any unused annual leave will roll over from year to year.

How much annual leave?

You must give your employee at least 4 weeks of paid annual leave, based on their ordinary hours of work. Annual leave accumulates gradually during the year (pro-rata for part-time employees).

So if your employee works full-time, they'll accumulate 4 full weeks of leave over a year.

If they work 20 ordinary hours a week as a part-time employee, they'll accumulate 80 hours of annual leave per year (the equivalent of 4 weeks of work).

Find out more about annual leave on the Fair Work Ombudsman website.

How much annual leave will your employee get each year (based on their ordinary hours of work)?

Select 5 weeks if the award has a definition of a shiftworker for the National Employment Standards and your employee meets that definition.

Select number of weeks annual leave

Annual leave clause

Included

You are entitled to [number of weeks] of annual leave each year, based on your ordinary hours of work per week.

We will provide any applicable annual leave loading entitlements in accordance with your award.

Annual leave accumulates during the year. Any unused annual leave will roll over from year to year.

How much annual leave?

Under the National Employment Standards (NES), shiftworkers must get 5 weeks of annual leave per year. Check the section in the award that covers annual leave. If the award has a definition of a shiftworker for the NES, and your employee meets the definition, you must give them 5 weeks.

Part-time employees

If you have a part-time employee, use their ordinary hours to calculate how much annual leave they get. For example, if they work 20 ordinary hours a week, and they are entitled to 5 weeks of annual leave, they get 20 x 5 = 100 hours per year.

Find out more about annual leave on the Fair Work Ombudsman website.

Parental leave

Your employee may be entitled to 12 months of unpaid parental leave after working for you for a year.

Parental leave clause

Included

After you have been working for us for 12 months or more, you are entitled to take unpaid parental leave from your position for 12 months.

You may also:

  • request up to an extra 12 months of unpaid leave
  • be entitled to Parental Leave Pay from the Australian Government, administered by Services Australia.

Who gets parental leave

The parental leave entitlement applies to full and part-time employees. Casual employees may also get parental leave if they:

  • have worked for you on a regular and systematic basis for 12 months or more
  • had a reasonable expectation of continuing this regular work had it not been for the birth or adoption of a child.

Find out more about parental leave on the Fair Work Ombudsman website.

Your employee may be entitled to 12 months of unpaid parental leave after working for you for a year.

Parental leave clause

Included

You may be entitled to 12 months of unpaid parental leave if you:

  • have worked for us on a regular and systematic basis for 12 months or more
  • had a reasonable expectation of continuing this regular work had it not been for the birth or adoption of a child.

You may also:

  • request up to an extra 12 months of unpaid leave
  • be entitled to Parental Leave Pay from the Australian Government, administered by Services Australia.

Who gets parental leave

The parental leave entitlement applies to full and part-time employees. Casual employees may also get parental leave if they:

  • have worked for you on a regular and systematic basis for 12 months or more
  • had a reasonable expectation of continuing this regular work had it not been for the birth or adoption of a child.

Find out more about parental leave on the Fair Work Ombudsman website.

Additional parental leave

You can choose whether to provide additional paid leave (on top of the above parental leave) as an incentive.

week(s)

Enter number of weeks paid parental leave (the number must be greater than or equal to 1)

Enter a whole number.

Additional parental leave clause

Optional to include

In addition to the above parental leave, we will provide you with [number] week(s) paid parental leave.

Personal/carer's leave

This sets out your employee's entitlement to personal and carer's leave in your employment contract. Casual employees are entitled to unpaid carer’s leave.

Personal/carer's leave clause

Included

You are entitled to 10 days paid personal/carer's leave (pro-rata for part-time employees) per year based on your ordinary hours of work. This is calculated as 1/26 of your ordinary hours of work in a year.

You can take personal/carer's leave when you can't work because you are sick or injured. You can also use it to care for a member of your immediate family or household who requires care or support because of:

  • personal injury
  • personal illness
  • an unexpected emergency.

Your personal/carer's leave accrues throughout the year and from year to year. You must give us notice as soon as possible to take personal/carer's leave. We may also require evidence (such as a medical certificate).

You are also entitled to 2 days unpaid carer's leave (in accordance with the National Employment Standards). This is available each time an immediate family member or household member needs your care or support. You can only take unpaid carer's leave if you do not have any paid carer's leave left.

Personal, carer's and sick leave

Personal/carer's leave (sometimes called sick and carer's leave) is for when your employee cannot work because:

  • they're sick or injured, or
  • a member of their immediate family or household needs their care or support for an injury, sickness or unexpected emergency.

Find out more about personal/carer's leave on the Fair Work Ombudsman website.

This sets out your employee's entitlement to personal and carer's leave in your employment contract. Casual employees are entitled to unpaid carer’s leave.

Carer's leave clause

Included

You are entitled to 2 days of unpaid carer's leave (in accordance with the National Employment Standards). This is available each time a member of your immediate family or household needs your care or support because of:

  • personal injury
  • personal illness
  • an unexpected emergency.

You must give us notice as soon as possible to take carer's leave. We may also require evidence (such as a medical certificate).

Personal, carer's and sick leave

Personal/carer's leave (sometimes called sick and carer's leave) is for when your employee cannot work because:

  • they're sick or injured, or
  • a member of their immediate family or household needs their care or support for an injury, sickness or unexpected emergency.

Find out more about personal/carer's leave on the Fair Work Ombudsman website.

Compassionate leave

This sets out compassionate leave entitlements in your employment contract.

Compassionate leave clause

Included

You are entitled to 2 days paid compassionate leave (in accordance with the National Employment Standards) each time:

  • a member of your immediate family or household dies, or has a life threatening illness or injury
  • a child is stillborn, that would have been a member of your immediate family or household if born alive
  • you or your current spouse or de facto partner has a miscarriage.

Paid or unpaid?

  • Full and part-time employees get paid compassionate leave.
  • Casual employees get unpaid compassionate leave.

Find out more about compassionate and bereavement leave on the Fair Work Ombudsman website.

This sets out compassionate leave entitlements in your employment contract.

Compassionate leave clause

Included

You are entitled to 2 days unpaid compassionate leave (in accordance with the National Employment Standards) each time:

  • a member of your immediate family or household dies, or has a life threatening illness or injury
  • a child is stillborn, that would have been a member of your immediate family or household if born alive
  • you or your current spouse or de facto partner has a miscarriage.

Paid or unpaid?

  • Full and part-time employees get paid compassionate leave.
  • Casual employees get unpaid compassionate leave.

Find out more about compassionate and bereavement leave on the Fair Work Ombudsman website.

Community service leave

This sets out community service leave entitlements in your employment contract.

Community service leave clause

Included

You are entitled to community service leave (in accordance with the National Employment Standards) for certain activities such as:

  • voluntary emergency management activities
  • jury duty and jury selection.

You must give us:

  • notice of your leave as soon as possible
  • details of the period, or expected period, that you will be away from work.

We may ask you to provide evidence that you require community service leave.

Community service leave entitlements

Community service leave is unpaid, except for jury duty.

Where they're required to attend jury duty, you'll need to pay full-time and part-time employees 'make-up pay' for the first 10 days of their jury duty. This is the difference between any payment they get from the court and their base pay rate.

There's no limit on the amount of community service leave your employee can take.

Find out more about community service leave on the Fair Work Ombudsman website.

Family and domestic violence leave

This sets out your employee's entitlement to family and domestic violence leave in your employment contract.

Family and domestic violence leave clause

Included

You are entitled to 10 days of paid family and domestic violence leave (in accordance with the National Employment Standards) each 12 month period.

Who it applies to

All employees (including part-time and casual employees) are entitled to 10 full days of paid family and domestic violence leave each 12 month period. 

Employees can access the full 10 days from their first day.

The leave renews every year on an employee's work anniversary. It won't accumulate from year to year if it's not used.

Find out more about family and domestic violence leave on the Fair Work Ombudsman's website.

Public holidays

This sets out the work and pay rules for public holidays in your employment contract.

Public holiday clause

Included

You have a right to be absent from work on a public holiday.

We may ask you to work on a public holiday. You may refuse our request to work if:

  • your refusal is reasonable, or
  • our request is unreasonable according to the Fair Work Act 2009.

If you work on a public holiday, you are entitled to any additional entitlements under your award, such as public holiday penalty rates.

If you do not work on a public holiday, and it falls on a day you would normally work, you are entitled to be paid your base rate of pay.

Work on a public holiday

  • You can ask an employee to work on a public holiday – if it's reasonable.
  • If they do work, you'll need to pay them at least the award rates for public holidays.

Find out more about public holidays on the Fair Work Ombudsman website.

This sets out the work and pay rules for public holidays in your employment contract.

Public holidays clause

Included

You have a right to be absent from work on a public holiday.

We may ask you to work on a public holiday, but as you are a casual employee you may refuse our offer of work.

If you work on a public holiday, you are entitled to any additional entitlements set out under your award, such as public holiday penalty rates.

Work on a public holiday

  • You can ask an employee to work on a public holiday – if it's reasonable.
  • If they do work, you'll need to pay them at least the award rates for public holidays.

Find out more about public holidays on the Fair Work Ombudsman website.

Long service leave

This provides an overview of long service leave in your employment contract.

Long service leave rules differ between states and territories, as well as between industries, so specific details are not provided here.

Long service leave clause

Included

You may be entitled to long service leave after working with us for a specific period of time in accordance with relevant state or territory legislation.

Long service leave laws

State and territory laws (and in some cases long service leave terms under pre-modern awards which have been preserved under the National Employment Standards) set out how:

  • long your employee has to be working for you to get long service leave (e.g. after 10 years)
  • much long service leave they get.

In some states and territories:

  • long serving casuals get long service leave
  • employees in security, community services, building and construction, coal mining and contract cleaning can get portable long service leave. This means they can take their long service leave entitlements from job to job.

Find out more about long service leave on the Fair Work Ombudsman website.

Employee obligations

Include this to set expectations of your employee to act in the interests of your business and to follow your policies and procedures.

Employee obligations clause

Optional to include

As an employee of our business we expect you to:

  • carry out your duties to the best of your ability
  • act honestly and in the best interests of the business
  • comply with our business policies and procedures, which we will make available to you (but do not form part of this contract)
  • comply with any other lawful and reasonable directions we provide.

Examples of policies and procedures

Depending on your business, your policies and procedures might cover:

  • record keeping and privacy
  • use of computers, internet and social media
  • work health and safety, including emergency procedures
  • selling goods and services (e.g. refund policies)
  • customer service.

Read more about policies and procedures

Conflict of interest

Include this to ensure your employee gets your permission before:

  • working for a competing business
  • doing activities that could conflict with your business interests.

It's important to note that this clause will only apply while your employee is employed with you.

Conflict of interest clause

Optional to include

While employed with us, you must get our written agreement before working for other employers or doing activities that may conflict with the interests of our business.

What conflict of interest is

This is when your employee's personal activities could put your business at a disadvantage while they are working for you. For example, there might be a conflict of interest if your employee:

  • starts a business that sells similar products to your business
  • accepts a gift from a supplier and gives them preference over other suppliers to your business
  • accepts a role on the board of directors for a competing business.

If you are including this clause in your contract, it’s important to have a process in place for how your employees can report potential conflicts of interests to you and seek your written agreement for them to engage in these activities.

A conflict of interest clause is not meant to restrict your employee from working elsewhere when it doesn’t conflict with your business interests.

It also doesn’t mean your employee can’t work for a competing business once they are no longer employed by you.

Confidentiality

This sets out the requirement for your employee to keep confidential information private.

Confidentiality clause

Optional to include

You agree not to use or disclose confidential information relating to the business. This includes while you are employed by us and after your employment ends.

Confidential information – including trade secrets, pricing structures, documents you create while employed with us, and information on our clients and suppliers – is our property.

There are exceptions if:

  • we have given you our consent
  • you are using the information appropriately to do your work for us
  • the information is already publicly available
  • the information is required by law.

When to use this

This clause is particularly important if your employee is likely to have access to information such as:

  • client and supplier details
  • trade secrets
  • financial information
  • pricing structures.

Make sure your employee understands what confidential information is, and how to handle it.

Prohibition on pay secrecy terms

Confidential business information is different to pay secrecy.

From 7 June 2023, employers are prohibited from entering into a contract of employment or other written agreement that includes a pay secrecy term and will be liable for civil penalties.

Find out more on pay secrecy in employment contracts, awards and agreements on the Fair Work Ombudsman website.

Intellectual property

Include this to protect your business's intellectual property (IP).

  • Prevent employees from being able to share or use your IP – while working for you and if they leave your business.
  • Make sure that anything an employee creates while working for you is owned by your business.

Intellectual property clause

Optional to include

Anything you invent, develop or create in the course of your work with us remains our intellectual property. You must tell us about these works immediately.

This includes:

  • designs
  • logos
  • business and domain names
  • copyright
  • trade marks
  • patents.

You must not use or reproduce any intellectual property owned by us without our consent. This includes after your employment with us ends.

IP examples

  • Designs for your products
  • Your business logos
  • Business and domain names
  • Copyright for product design drawings or computer programs
  • Trade marks for your logo or brand
  • Patents for inventions or processes

Consultation for workplace changes

You must consult with your employees about major changes to the workplace, their regular roster or ordinary hours of work.

For example, you'd need to consult with them before:

  • introducing manufacturing equipment that would change their duties
  • moving your workplace to a new location
  • changing your staffing structure and who staff report to.

Consultation for workplace changes clause

Optional to include

If we intend to make significant changes in the workplace, we will consult with you and your representatives in accordance with the award. This includes major changes to:

  • our business operations, structure or technology that are likely to significantly affect you
  • your regular roster or ordinary hours of work – if you work regular hours.

Why consult?

Consultation is required by law – you'll find consultation requirements in all modern awards. When you consult, you must consider issues that your employees raise, but you don't have to get their agreement to make the changes. There are also requirements under work health and safety legislation to consult on health and safety matters.

Consultation is also good for your business – it helps you to engage with your employees and minimise disputes.

The Fair Work Ombudsman website has more on the advantages and requirements for consultation in the workplace.

Disputes

Include this to get an overview of the process for resolving disputes in your employment contract. Your award sets out this process.

Disputes clause

Optional to include

If you have any concerns about your employment, talk to us first so we can try to solve the issues together. Your award has a dispute resolution term that sets out this process.

If the dispute remains unresolved, you or we may refer it to the Fair Work Commission. If this happens, you can be represented by another person or organisation.

While the dispute is being resolved, you must continue to work as usual as long as the work complies with any applicable work health and safety legislative requirements.

Managing disputes

A dispute is when you and your employee disagree about employment conditions and the issues remain.

A fair process to manage disputes and bring them to an end is good for your business and for your relationship with your employee. Your award has a dispute resolution term that sets out the process for resolving disputes.

If you can't resolve a dispute yourselves, you or your employee can refer it to the Fair Work Commission. If you both agree, the Commission can then make a ruling about the dispute.

Find more information, including a best practice guide, on the Fair Work Ombudsman's dispute resolution page.

Notice

A notice period is the length of time that you and your employee have to give to end employment. Notice periods do not apply to casual employees.

Notice clause

Included

As a casual employee, if:

  • we end your employment, we do not have to give you notice
  • you resign, you do not have to give us notice.

Resignation notice

If your employee resigns, how much notice will they need to give you?

Insert at least the minimum notice from the award. If your award isn't listed, choose 'Other' then find it in the linked list of awards. If the award doesn't have rules, consider using the same minimum notice period required for dismissals.

Continuous employment Minimum notice period
week(s)
week(s)
week(s)
week(s)

Enter number of weeks notice (the number must be greater than or equal to 1)

Enter a whole number.

Resignation notice clause

Included

You must give us the following minimum notice periods if you resign.

Continuous employment with usMinimum notice period
1 year or less[number] week(s)
More than 1 year to 3 years[number] week(s)
More than 3 year to 5 years[number] week(s)
More than 5 years[number] week(s)

Notice period

When an employee resigns, they have to give notice to you. The minimum notice period is the length of time they must give notice to you before they end employment.

Dismissal notice

If you dismiss an employee, you must provide specific minimum notice periods or the equivalent pay (unless they're in the list of employees that do not get notice). You should also check the minimum notice in the award – some have longer notice periods. If your award isn't listed, choose 'Other' then find it in the linked list of awards.

Dismissal notice clause

Included

You are entitled to the following minimum notice periods (or payment in lieu of notice) if we end your employment. This does not apply if we end your employment for serious misconduct.

Continuous employment with usMinimum notice period
1 year or less1 week
More than 1 year to 3 years2 weeks
More than 3 years to 5 years3 weeks
More than 5 years4 weeks

You may be entitled to a longer minimum notice period under your award.

You will get an extra week of notice if you're older than 45 years and have worked for us for at least 2 years.

Some employees do not get notice

Exclusions apply. For example, employees do not get notice if their employment is terminated:

  • at the end of a fixed term contract
  • at the end of a seasonal worker arrangement
  • as a casual employee
  • due to serious misconduct.

Check for other exclusions on the Fair Work Ombudsman website.

Payment in lieu of notice

Instead of them working through the notice period you may pay your employee the equivalent amount.

Unfair dismissal

If you dismiss an employee and they think the dismissal is unfair, they may be able to challenge it through the Fair Work Commission. Learn more about ending employment and unfair dismissal on the Fair Work Ombudsman’s Ending employment page.

Redundancy

Redundancy can occur when you either no longer need an employee's job to be done by anyone (e.g. you get technology that replaces the job), or you become insolvent or bankrupt.

Redundancy clause

Included

If your position is terminated due to redundancy, any notice and redundancy pay entitlements will be in accordance with the National Employment Standards and your award.

Redundancy pay

When an employee's job is made redundant, you may have to provide redundancy pay if:

  • they've been working for you for at least a year
  • your business has at least 15 employees when they're made redundant.

You'll also need to know the rules around:

  • consultation – if you make workplace changes that are likely to cause redundancies
  • giving notice
  • notifying Services Australia if you're making 15 or more employees redundant.

Find more information on notice and redundancy pay, including exclusions, on the Fair Work Ombudsman website. You should also check the award.

Misconduct

This sets out that you can dismiss (fire) the employee for serious misconduct without notice.

Misconduct clause

Optional to include

We may terminate your employment without notice, or payment in lieu of notice, if you engage in serious misconduct.

Serious misconduct is when an employee:

  • causes serious and imminent risk to the health and safety of another person or to the reputation, viability or profits of their employer's business, or
  • wilfully or deliberately behaves in a way that's inconsistent with continuing their employment.

Examples of serious misconduct include:

  • theft
  • fraud
  • violence/assault
  • sexual harassment
  • serious breaches of health and safety requirements
  • being drunk or affected by drugs at work
  • refusing to carry out work duties.

Serious misconduct

To dismiss an employee without notice, you must believe that their conduct is serious enough to justify immediate dismissal.

It's a good idea to document the misconduct, in case your employee makes an unfair dismissal claim. Be careful dismissing an employee this way. If the dismissal is found to be unfair, you may have to pay compensation, lost wages and/or give the employee their job back.

Check the Fair Work Ombudsman's website for more information on serious misconduct.

Review your employment contract

Check the clauses you've added to your contract.

Success. Changes you have made have been updated.

Position

Position title

Duties

Award for your employee

Business structure

Workplace

Employment type

Employment dates

Probation period

Hours

Hours of work

Shift work

Flexible hours

Averaging hours over more than a week

On call or stand-by

Rosters

Breaks

Pay

Pay rate

Payment method

Superannuation

Additional super contributions

Penalty rates and overtime

Allowances

Commission

Annual bonus

Annual pay review

Leave

Annual leave

Parental leave

Additional parental leave

Personal/carer's leave

Compassionate leave

Community service leave

Family and domestic violence leave

Public holidays

Long service leave

Obligations

Employee obligations

Conflict of interest

Confidentiality

Intellectual property

Consultation for workplace changes

Disputes

Ending employment

Notice

Resignation notice

Dismissal notice

Redundancy

Misconduct

Review

Review your employment contract

Get your contract

Email or download your employment contract and a letter of offer in a word document.

Steps to make an offer of employment

To complete your contract and letter of offer, you'll need to add some personal details.

  • Complete the details for you and your employee in the letter of offer.
  • Consider adding your business logo to the contract to give it a professional look that is tailored to your business.

Once you're happy you've got the right details in both documents, prepare an employment offer pack with:

  • 2 identical copies (one for your employee's records) of the letter of offer and attached employment contract
  • the position description, if you have chosen to attach it separately
  • the Fair Work Information Statement (you must give this to all employees, including casuals).
  • the Casual Employment Information Statement (you must give this to casuals).

If you don't have a position description yet, consider using the job description template on the Fair Work Ombudsman website.

You could also add the following to your employment pack (if you don't, make sure you provide them when your employee starts):

Use our Hiring employees checklist to understand what else you need to do when you hire someone.

You may want to provide other benefits that aren't covered in our employment contract, such as:

We suggest you get independent legal or financial advice to set up these arrangements.

Provide your potential employee with the employment pack.

Some employers find that doing this in person helps to:

  • establish a good employment relationship
  • give you both a chance to discuss the conditions
  • raise any questions.

Give your potential employee a few days to consider your offer. They may want to negotiate some of the terms. Expect this and compromise where possible. You cannot agree to anything that doesn't meet their award or the National Employment Standards.

For help with terms and conditions of employment, you or your employee can contact the Fair Work Ombudsman.

Make sure they're happy with the employment contract before signing.

If you need to make a few changes, it's probably best to start a new contract.

Once they've agreed to the contract terms, ask them to sign the letter of offer and contract to accept the offer and conditions of employment. You should sign the letter and the contract before you give it to your employee, after you have filled out the details.

You should both keep a copy of the contract and letter of offer for your records.

Now that you've both signed, find out how to onboard your new employee.

If you need a new contract in the future, make sure to come back and use this tool from the beginning. Reusing a contract runs the risk of missing important legal changes and tool updates that help you meet the law.

Keep up to date

Make sure you stay on top of any changes to your employee's minimum conditions under the award. Get updates on employment regulations and business news by subscribing to the business.gov.au newsletter.

Subscribe to the business.gov.au newsletter

You can also subscribe to email updates from the Fair Work Ombudsman to keep up to date with workplace issues in your industry, including changes to pay rates and entitlements under the award.