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3 Reasons a Business Needs Employment Agreements

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There are three reasons why having employment agreements is necessary for your business. Those reasons are to demonstrate compliance with the law, have a written document both parties can rely on and enforce, and convey the maturity and professionalism of your business.

There are many other reasons why employment agreements are important for any business, but here we’ll take a look at the top three.

employment agreements
Author: Farrah Motley, Director of Prosper Law and an employment lawyer.

Employment agreements can demonstrate compliance with the law

Your business can demonstrate to its employees and regulators that it is complying with the law by having employment agreements in place.

But even more important than that is to make sure your business does in fact comply with the law. After all, an employment contract isn’t worth the paper it’s written on if it isn’t being complied with.

But remember, the opposite is also true. Your business may get into legal trouble if it has employment agreements in place that are non-compliant. That’s why it is always recommended that you have an employment lawyer review any employment agreement template.

An easy way to make sure an employment contract complies with the law is to refer to the law within the contract. This might be as simple as referring to an Award or the Fair Work Act 2009 (Cth). A good understanding of how the law and the terms of your business’s employment agreements work together is key.

Written employment agreements are more easily enforced

As a business, you want to avoid ‘he said’ / ‘she said’ scenarios. Therefore, having clear, written employment agreements in place will help you to more easily enforce them.

An employment contract is only worthwhile if it is enforceable in accordance with its terms. After all, as a business owner, you will want certainty that each of your employees is bound by the terms of the agreement.

In Australia, it is not a legal requirement for employment agreements to be in writing. However, it is difficult to enforce a verbal contract and this should be avoided.

Moreover, a contract can be demonstrated through a course of conduct. If you’re paying an employee a particular wage or giving them particular entitlements, then those things might be said to form part of the contract. Your business may be risking unintended consequences by not having employment contracts in writing.

Your business conveys professionalism with written employment agreements

Any new employee will expect to be provided with a written contract. If an employer does not provide a written contract, this can make the recruitment process more challenging. For example, a prospective employee may get concerned that the business is not doing the right thing if they don’t have a written contract.

Think of the top ten businesses in your industry. It is highly likely that every one of them will provide their employees with written contracts. And you should too.

They’re not hard to find either. In fact, Prosper Law sells a template employment agreement via our online shop. You can also contact us for a more bespoke agreement that is purpose-built to meet your business’s needs.

How Can Prosper Law Help?

Prosper Law is Australia’s online law firm. We provide legal services to businesses and individuals across Australia. Our areas of practice include contracts, eCommerce, publishing, legal counsel, and employment law.

If you would like advice regarding employment agreements, get in touch today.

Contact the team at Prosper Law today to discuss how we can provide you with your legal needs for a fixed fee.

Farrah Motley | Director

PROSPER LAW – Australia’s Online Law Firm

M: 1300 003 077

W: www.prosperlaw.com.au

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About the Author

Farrah Motley
Director of Prosper Law. Farrah founded Prosper online law firm in 2021. She wanted to create a better way of doing legal work and a better experience for customers of legal services.

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