Employment Contract Tool
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)
- the Fixed Term Contract Statement (you must give this to employees on a fixed term contract).
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):
- a tax file number(TFN) declaration form
- superannuation choice form
- digital or hard copy of the relevant award
- your business policies and procedures.
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:
- fringe benefits e.g. a car, phone or car parking
- salary sacrificing
- training and development.
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.
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.