Suppose you are considering starting a gardening business or want to expand your existing business. If you need to hire employees as part of this process, it is essential to consider what to include in your employment contracts. A well-drafted and constructed employment contract is a pillar of any successful business venture. Hence, this article explains what you should include in your employment contracts as a gardener.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
What Type of Employee Will You Hire as a Gardener?
Before drafting an employment contract, you should decide which type of employee you will hire. It is vital that your employment contract accurately reflects the type of employment you have chosen, as different types of employees will have different entitlements. The two main types of employees are explained below.
Permanent Employees
A permanent employee works a set number of hours each week. They generally remain employed with you on an ongoing basis unless either party terminates the employment.
A permanent employee can be a:
- full-time employee who usually works 38 hours per week; or
- part-time employee who works less than 38 hours per week.
You should consider whether your business is in a position to guarantee work hours to permanent employees and provide them with their minimum entitlements.
Casual Employee
On the other hand, you do not guarantee ongoing work to a casual employee. Instead, casual employees work on an ad hoc basis. Additionally, a casual employee does not have minimum entitlements such as paid annual or personal leave. Nevertheless, you must pay a casual employee 25% loading on top of their hourly rate.
What Are the Benefits of a Well-Drafted Employment Contract for Gardeners?
An employment contract is the primary document that governs the relationship between an employer and an employee. Employment contracts are vital to any business as they protect the business from liability by clearly setting out the role and responsibilities of each party.
For example, an employment contract will cover several important issues, including the:
- rights and obligations the employer and employees have under the contract;
- legal enforceability of various clauses in the contract; and
- likelihood of any disputes arising between the employer and employee concerning the contract.
A well-drafted employment contract ensures that each employee:
- understands what you require of them while on the job; and
- works efficiently and safely.
After all, safety is critical for a business that revolves around physical labour and power equipment, such as gardening and landscaping!
Continue reading this article below the formWhat Should You Include in Employment Contracts For Gardeners?
Firstly, you must ensure that your employment contracts correctly identify the type of employee your business is engaging. This is because the employment type will determine what entitlements you owe your employee. Nevertheless, there are additional clauses you should consider including.
Below is a list of what should be included in an employment contract if you are starting a gardening business. However, it is a good starting point to get you thinking about the finer points you should consider.
Rate of Pay
To avoid any disputes in the future, you should ensure that your employment contracts include how much you will pay your employee. Notably, all employees are entitled to the national minimum wage. However, a modern award or enterprise agreement might increase their minimum entitlements. If a modern award or enterprise agreement covers your employee, these documents will set out their minimum entitlements, such as their minimum pay rates.
Probation and Notice of Termination
A probation period is a fixed period in which you may terminate the employee’s employment with reduced notice. It allows you to assess an employee’s performance and consider whether you would like to continue to employ them.
You should also consider how much notice you will require the employee and your business to provide if either party wants to end the employment relationship. It is essential to include a termination provision to avoid any possible dispute and allow enough time for a suitable handover.
Under the law, employees are entitled to minimum notice periods, which increase incrementally based on their period of continuous service. You can either include the minimum notice periods or set a notice period. Nevertheless, if you insert a notice period, you must ensure it does not undercut the notice the employee would be entitled to under the law.
Confidentiality
You must ensure that your employment contract also includes robust protections surrounding your business’s confidential information and intellectual property. For example, as a gardener, your client lists are confidential and highly valuable to your business. Hence, a confidentiality clause generally states that employees cannot disclose client lists or other confidential information.
Restraint Clauses
Restraint clauses can be beneficial in protecting the success of your business by ensuring that your business is protected during and after an employee leaves your business. There are two different types of restraint clauses, including:
- non-compete clauses that prevent your employees from working with competitive businesses during and following their employment with you; and
- non-solicitation clauses, that prevent your employees from soliciting clients, employees or suppliers following their employment.
Key Takeaways
A well-drafted employment contract will provide legal protections to your business and give your employees clarity about their employment obligations and expectations. However, drafting clear and concise employment contracts can be tough without legal expertise.
If you need help drafting employment contracts as a gardener, 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.
Frequently Asked Questions
You should consider whether your business is in a position to provide ongoing work to a permanent employee, as well as their minimum entitlements such as annual and personal leave. If your business cannot guarantee work hours for employees, you may consider hiring a casual employee. Casual employment is much more flexible, and you are not obligated to provide the employee with ongoing work under such an arrangement.
Before you draft your employment contracts, consider whether you have the expertise and knowledge to draft a legally compliant employment contract that provides your business with all the protections it needs. Although it may seem simple to assemble an employment contract, a well-drafted one involves clauses tailored to your business and should be drafted by an experienced lawyer.
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