If you are looking to create a locksmith business or expand your existing one, it would be a good idea to start thinking about what to include in your employment contracts. An employment contract is a legally binding agreement establishing your and your employee’s rights and obligations in the workplace. Employment contracts form the basis of any business and employment relationship, as they define how your business runs while protecting it from financial and legal liability. They create clarity for your employees, so they know exactly what you, as their employer, expect and require of them in your business. This allows you to focus on expanding your business without the worry of micromanagement and will allow your employees to develop their skills in a controlled environment. This article explains what to include in your employment contracts.
What Should I Include in My Employment Contracts?
Since your employment contracts define the role of your employees from the second they begin work to the second they finish, you should include anything that you think would be important. This means it will be necessary for you to have a clear vision for each role within your company.
In saying that, you certainly do not have to worry about creating a new contract for each employee. This is because there are likely to be some overlaps in the key contractual terms, some of which we outline below.
Honesty
The reality as an owner of a locksmith business is that you are sometimes forced to pay for the dishonesty of an employee. Therefore, your employment contract should state, in no unclear terms, that, by signing the contract, your employee aims to be an honest and upstanding person who will represent your company to the best of their ability. Not only will this help you perform your due diligence in hiring employees, but it will also show prospective employees what standards your business expects.
Expectations in the Workplace
Employment contracts should also explain, in detail, how you expect staff members to act towards each other. This will protect you from liability as the result of any unsavoury behaviour on the part of an employee. However, it will also act as a beacon to your employees, showing them the standard of behaviour you expect. This will hopefully stop harassment in its tracks, as they will know this is something you will not stand for.
Pay Terms
This may seem obvious, but your employment contracts should specify your employee’s pay entitlements. Ultimately, your employee’s rate of pay will vary depending on what is set out in:
- a modern award;
- enterprise agreement (if there is one in place); and
- the national minimum wage.
If you are unsure what to pay your employees, you should clarify this with an employment lawyer to avoid underpaying your employees.
General Standards: Hours, Leave, Termination
An employment contract should also cover other general standards beyond your employee’s pay entitlements. These standards include your employees’:
- expected weekly hours of work;
- leave entitlements ranging from annual leave to sick leave; and
- rules regarding termination and redundancy, such as minimum notice periods.
This is only a rough guide to the areas you should consider when creating employment contracts for your business. The main thing to remember is that your employment contracts should cover every aspect of every job. There is no such thing as an employment contract that is too detailed. However, drafting it in broader, more all-encompassing terms is more effective.
Can I Create My Own Employment Contracts?
It is possible to create employment contracts for your business. However, without previous legal experience, it can be challenging. You will have to know relevant sections of employment law and be aware of proposed changes to these laws, as they could affect your contracts.
As such, it is advisable that you involve a lawyer at some point in drafting your employment contracts. This does not necessarily mean that you will need to hire a lawyer to write each one of your contracts. Perhaps you could write them first and ask a lawyer to see if there are any glaring gaps.
Continue reading this article below the formKey Takeaways.
If you want to create a locksmith business or expand your existing one, you must consider your employment contracts. These contracts form the basis of your business and represent how you want it to run. In addition, they ensure your business is a happy and honest environment for you and your employees while protecting you from financial liability. However, it can be daunting when you create your own employment contracts, so it may be helpful to obtain the assistance of a qualified legal professional.
If you need help drafting your employment contracts, 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
An employment contract is a legally binding agreement. It sets out your rights and your employee’s rights and obligations in their job.
Your employment contracts include detail about the employment, such as payment terms and expectations in the workplace.
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