What Should Construction Workers Look for in Employment Contracts?

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Table of Contents

• Work Health and Safety
• Independent Contractor or Employee
• Freedom of Association
• Minimum Standards
• Payment and Superannuation
• Key Takeaways 

It is sometimes difficult for prospective employees to know what they should look for in their employment agreement. While employment contracts usually have standard clauses, their content will largely depend on the industry. The article discusses the issues construction workers should look for in their employment contracts. 

Work Health and Safety

In recent times, at least 23 construction workers sustained fatal injuries while working, and another 1,700 suffered permanent disability in the state of NSW alone. Understandably, work health and safety is a significant issue for those who work in the construction industry.

Employees have the right to work in a safe environment. Your safety should be a priority for your employer. An employment contract (or an associated document) should outline how your prospective employer commits to the safety of their employees. Your contract may discuss issues such as:

• managing risks on a construction site;
• whether the employer has a policy of restricting access to the site;
• procedures for excavation work;
• whether a medical examination is required for you to perform work; 
• obligations when complying with health and safety procedures; 
• procedures for construction work;
• incident reporting procedures;  
• training for employees on safety issues; and 
• your contract may also discuss whether your employer has a formal safe work method statement.

If you require information about the particular laws governing construction in your state or territory, be aware that state and territory governments have agencies tasked with providing such information to individuals. For example, in NSW, this is the WorkCover Authority of NSW.

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Independent Contractor or Employee

You should ensure that the classification on your contract accords with your expectations in taking on the position. Your rights and entitlements at work are materially affected by this designation. For example, an independent contractor, unlike an employee, typically has their own public liability insurance as well as insurance for illness and accidents.

The terms of engagement should be comprehensively set out in a written agreement between the parties. If key aspects of the relationship are not regulated by the agreement, a court may examine the conduct of the parties when determining your classification. You should review your agreement to ensure that your legal rights, duties and obligations are represented within it. 

Freedom of Association

Your contract must guarantee you freedom of association. As an employee, you have the right to decide whether or not to join a union without fear of adverse action resulting from your choice. Adverse action can include when an employer terminates your employment or chooses to stop the hiring process. 

Minimum Standards

Your contract must guarantee you, at a minimum, the standards guaranteed in the employment laws applicable to you.

For example, all employees in the national workplace system are entitled to receive the National Employment Standards (NES). The NES are ten minimum entitlements all employees must receive. An employer cannot contract out of them or offer less. They cover matters such as:

• maximum weekly working hours;
• rights on termination and leave; and
• leave entitlements such as parental and annual leave. 

Be aware that if you are a casual employee, you can only receive four of these ten entitlements.

However, not all employees work in the national workplace system. In that case, you need to be sure that your contract provides you with the rights guaranteed by any relevant state or territory laws. 

The minimum standards of the construction industry are also likely to be dictated by an industrial instrument such as a modern award. This will specify: 

• minimum engagements; 
• minimum wage; and 
• penalty rates. 

Payment and Superannuation

You need to ensure that your employer agrees to pay you the correct wage on a regular basis and to provide you with payslips. Your employer should also make all relevant contributions to superannuation and withhold tax as required.

Key Takeaways 

As a construction worker, it is important to understand the steps your employer takes to ensure your health and safety. This should be stated in your employment agreement. Make sure you familiarise yourself with the provisions outlined in your employment contract. Additionally, you should understand whether you are covered by a modern award or any other industrial instrument. This will set out important information, including your pay and entitlements. If you have any questions regarding your employment contract, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.