The relationship between Employer and Employee is governed by an Employment Contract. Even if a written contract is not prepared, or the written contract is inadequate, minimum terms and conditions of employment are implied by law to govern the relationship, such as the Workplace Relations Act 1996 (Cth) and other State laws. The employment relationship may also be covered by applicable industrial awards which will also set minimum terms and conditions.
Employment laws have recently undergone significant changes and will continue to evolve and be modified by government. It is therefore important to know where you stand right from the start. A properly drawn Employment Contract should make it clear to both parties what their respective rights and obligations are. This should also minimize the potential for disputes between the parties when the Employment Contract is to be brought to an end.
Employers particularly need to ensure they are complying with all applicable employment laws as the Workplace Ombudsman is quite active in prosecuting claims and seeking fines against Employers for breaches of the law.