An employment agreement is a legal agreement between employers and their employees and workers. The agreement dictates the terms and conditions of the employer’s relationship with their employees. When drafting an employment agreement, you must cover your rights and obligations as an employer and those of the employee. It is important to ensure an employment agreement protects the interests of your business by including five key terms.

1. Pay Terms

It may seem obvious but it is important to set out the pay in an employment agreement. There are national minimum wages that you must adhere to in an employment agreement. However if your business falls under an industry that has a Fair Work award, the terms regarding pay in an employment agreement must be by the terms of the award.

2. General Standards: Hours, Leave, Termination

The Fair Work Commission has issued the National Employment Standards (NES), which underpin general conditions and standards. When drafting an employment agreement, you must include the hours you require employees to work, the leave that they are entitled to and the reasons and conditions surrounding termination and redundancy.

It is important that you include these standards, as per the NES. Accordingly, your employees are aware of their rights and the standards they must meet to benefit your business.

3. Restraint of Trade/Non-Compete Clause

When recruiting employees, it is essential to ensure that they do not perform work or share trade secrets, intellectual property and information of your business with your competitors. It is also in your best interests to ensure that employees do not leave to start a rival business and potentially poach your customers or clients.

A restraint of trade clause or non-competition clause prevents your employees from becoming a competitor or joining a competitor during their employment and even after the duration of their employment with you.

4. Confidentiality Clause

It is important to protect the information, ideas and property of your business. When working for you, your employees may come across a number of assets possessed by your business. In order to protect such assets and ensure that your employees keep them private and confidential, it is advisable to include a confidentiality clause in an employment agreement.

Key Takeaways

Every employment agreement is different. Therefore, it is important that your employment agreements reflect the:

  • interests of your business;
  • type of business you have; and
  • employees you recruit.

To ensure your interests are best communicated and protected through an employment agreement, it is advisable to include terms regarding pay, general standards, restraint of trade, confidentiality and resolving disputes. If you need further information and help to draft employment agreements to cater to the interests of your business, contact one of our business lawyers.

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Emma Heuston
Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer
Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at

View Privacy Policy