Table of Contents
- What Type of Employee Should I Hire?
- What Are Your Pay Rates as a Sign Writer?
- What Are Your Rules Regarding Probations and Notice of Termination?
- What Are Your Rules Regarding Confidentiality and Intellectual Property?
- Will You Include Restraint Clauses?
- Should You Seek Legal Advice?
- Key Takeaways
- Frequently Asked Questions
If you want to create your own sign writing business or expand your existing sign writing business, you should place a great deal of emphasis on the contents of your employment contracts. This article will outline some critical information you should include in your employment contracts as a sign writer.
What Type of Employee Should I Hire?
The first step is to consider what you will require of your employees, specifically the work hours you may need them to complete. This will largely determine on what basis you will hire them. For example, as a permanent or casual employee.
Casual Employment
Casual employment is a flexible arrangement where you do not guarantee ongoing work with the business. Instead, you notify casual employees about a shift and they can subsequently accept or refuse the shift.
You do not owe casual employees entitlements such as paid personal or annual leave. Instead, the law entitles casual employees to a 25% loading on top of their hourly base rate.
Permanent Employment
Permanent employment involves set work hours each week and an ongoing relationship. A permanent employee can either be a full-time or a part-time employee. A full-time employee usually works 38 hours per week. Whereas part-time employees work less than 38 hours weekly.
It is important to remember that you owe permanent employees specific entitlements such as:
- paid annual leave;
- personal leave; and
- a more extended notice of termination.
If your business requires employees to be available for set shifts, and these shifts can be guaranteed for employees each week, you may employ a permanent employee.
What Are Your Pay Rates as a Sign Writer?
Another important consideration is whether any awards or enterprise agreements will cover your employees. Once you determine what industrial instrument covers your employee, you must pay them according to any legal requirements.
For example, every employee is entitled to the national minimum wage. However, if an award or enterprise agreement covers them, they may have additional entitlements, such as pay rates that are higher than the national minimum wage. Hence, you must ensure that these are met.
Continue reading this article below the formWhat Are Your Rules Regarding Probations and Notice of Termination?
You may also consider including a probation period in the employment contract for permanent employees. A probation period is a set period in which you may terminate the employee’s employment with a reduced amount of notice. It is important to note that employees are entitled to a minimum notice period of one week, even if you dismiss them during their probation period (unless there is serious misconduct).
You should also consider how much notice you want the employee to provide should they want to end the employment relationship outside of the probation period. It is essential to include a notice period to:
- avoid any possible dispute; and
- allow enough time for a suitable handover.
Employees are entitled to minimum notice periods under the law, which increase incrementally based on their period of continuous service. You can either include the minimum notice periods or a set notice period. Nevertheless, if you insert a notice period, you must ensure it does not undermine the notice the employee would be entitled to under the law.
What Are Your Rules Regarding Confidentiality and Intellectual Property?
As a sign writer, you must protect information such as your client lists or designs. Therefore, you must ensure that your employment contract includes robust protections surrounding your business’s confidential information and intellectual property. This generally involves drafted clauses which make it clear that an employee must comply with all of their confidentiality obligations. For example, not disclosing client lists or information, as well as assigning any ownership of relevant intellectual property to your business.
Will You Include Restraint Clauses?
Restraint clauses can help protect the success of your business by ensuring that your business is protected during and after an employee leaves your business. The two different types of restraint clauses are:
- non-compete clauses, which prevent your employees from working with competitive businesses during and following their employment with you; and
- non-solicitation, which prevents your employees from soliciting your clients, employees or suppliers following their employment.
While restraint clauses can effectively deter your employees from engaging in such behaviours, their enforceability will depend on numerous factors. A restraint clause will only be found enforceable where it is reasonably necessary to protect legitimate business interests.
Should You Seek Legal Advice?
Employment law is always subject to change. Therefore, at some point during the process of drafting your employment contracts, you should seek legal advice.
In addition, you should note that there are many ways to seek legal advice. Firstly, you could draft your employment contracts and have a legal professional review them at the final stages. Alternatively, you can have a legal professional draft them, and you review them at the final stage. Otherwise, you could use a combination of the above two options in the best way for you.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
Key Takeaways
If you want to create your own sign writing business or expand your existing sign writing business, you should place a great deal of emphasis on the contents of your employment contracts. Employment contracts set expectations for your employees and include legal protections for your business. However, drafting employment contracts can be difficult, and you should seek legal advice.
If you need help drafting or reviewing your employment contracts as a sign writer, our experienced employment lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A restraint clause will attempt to restrict your employees from working with a competitive business or soliciting your clients, suppliers or employees during and after their employment with you ends. It is important to note that you can only enforce a restraint clause if it is reasonable in the circumstances.
All employees are entitled to the national minimum wage. However, if an award or enterprise agreement covers your employees, they may have additional entitlements, such as minimum pay rates higher than the national minimum wage. Therefore, it is essential to know whether an award or enterprise agreement covers your employee, so you can pay your employees correctly.
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