Following the Annual Wage Review and announcements of the National Minimum Wage increase to minimum award wages, it’s a good time to ensure you are paying your employees correctly and that your to review your employment contracts to ensure that they up to date.
An employment contract is an important agreement between an employer and employee that sets out terms and conditions of employment. Employment contracts can’t provide for less than the legal minimum entitlements set out in the National Employment Standards (NES), awards, enterprise agreements or other registered agreements that may apply.
All employees are covered by the NES, regardless of whether they’ve signed a contract. A contract can’t leave employees worse off than their minimum legal entitlement.
If you have fixed term contacts in place, it’s important to note a fixed term contract terminates at the end of a set period (for example, the contract ends on a set date, or after a set period of time or a season). There are rules that came into effect late last year that apply to making a fixed term contract and employees on a new fixed term contract must be given the Fixed Term Contract Information Statement.
Also changes to the Fair Work Act included pay secrecy terms being prohibited in employment contracts. Employers who enter into employment contracts that have pay secrecy terms in them could face penalties.
So now is a good time to get some advice and support with undertaking a review of your employment contracts. The South Australian Business Chamber (SABC) recommends you review the arrangement to ensure that:
Need advice?
If you need help with undertaking a review of your employment contacts call us today on (08) 8300 0000 (select option one) or if you want to ask your question on line you can do so here and we will get back to you ASAP.
