In short
A full-time or part-time employment contract sets out pay, hours, leave and termination terms consistent with the National Employment Standards and any applicable modern award. It should incorporate award coverage correctly, use a properly drafted set-off clause if the salary is meant to cover award entitlements, and carry restraint and confidentiality terms that are actually enforceable for the role.
Getting award coverage right from the start
Most disputes we see in this space don't come from a badly written clause — they come from the employer not knowing which modern award applies, or assuming a role is award-free when it isn't. Before drafting, we identify the correct award (or confirm the role is genuinely award-free because it sits above the high-income threshold with a guarantee of annual earnings), and we build the contract around that classification rather than around a generic template. Getting this wrong exposes the business to underpayment claims years after the contract is signed, because award coverage is a question of fact, not a label you can contract out of.
Set-off clauses that survive scrutiny
Where a salary is intended to absorb award entitlements such as overtime, penalty rates or allowances, the contract needs an annualised salary or set-off clause that does more than say 'salary is inclusive of all entitlements.' The Fair Work Ombudsman and courts have repeatedly found generic set-off wording ineffective because it doesn't identify which entitlements are being offset or allow the employer to demonstrate, pay period by pay period, that the employee wasn't left worse off. We draft set-off clauses with a reconciliation mechanism so the offset is real and defensible, not just words on a page.
The National Employment Standards as the floor
The NES under the Fair Work Act 2009 (Cth) sets minimum standards on things like annual leave, personal/carer's leave, notice of termination and redundancy pay that no contract can undercut. We draft above this floor only where the business intends to, and we're explicit about probation periods, hours of work (including any reasonable additional hours clause) and how part-time hours are guaranteed, since part-time employees are entitled to certainty about their ordinary hours under most awards.
Restraints and confidentiality that fit the role
A restraint of trade clause is only enforceable to the extent it protects a legitimate business interest and is reasonable in scope, area and duration — courts will strike out or read down an overreaching restraint rather than rewrite it in your favour (NSW being an exception where the Restraints of Trade Act 1976 (NSW) allows partial enforcement). We calibrate restraint length and geographic scope to the seniority and client-facing nature of the role, and pair it with confidentiality and IP assignment clauses that actually cover what the employee will be exposed to, rather than lifting boilerplate that won't survive a challenge.
Termination and post-employment mechanics
We build in notice periods that meet or exceed the NES minimums, garden leave provisions where relevant, and clear treatment of accrued leave, bonuses and equity on exit. For part-time roles we also address variation of guaranteed hours, since unilateral changes without agreement can amount to a breach or even constructive dismissal.
What the fixed fee covers
- Award classification check against the applicable modern award or high-income threshold
- Drafted contract covering pay, hours, leave, probation and termination
- Set-off or annualised salary clause where relevant, with reconciliation mechanism
- Restraint of trade, confidentiality and IP assignment clauses tailored to the role
- One round of revisions and a plain-English summary for the employer
Mistakes we see
- Using a generic 'salary is inclusive of all entitlements' clause with no reconciliation mechanism
- Assuming a role is award-free without checking the high-income threshold and guarantee of annual earnings
- Copying a restraint clause from another business's contract without matching it to the role's actual client exposure
- Leaving part-time guaranteed hours undefined, creating disputes when rosters change
- Failing to update contracts when an employee is promoted into a different award classification
Who this is for
- Businesses hiring their first full-time or part-time employee
- Employers who have been using an out-of-date or downloaded template
- Businesses onboarding senior or client-facing hires needing restraints
- Employers responding to a Fair Work audit or dispute
Frequently asked questions
- Do I need a different contract for full-time versus part-time staff?
- The core structure is similar, but part-time contracts must specify guaranteed ordinary hours and how variations to those hours are agreed, which full-time contracts don't need to address in the same way. We draft each to match the entitlements the relevant award or the NES actually requires for that employment type.
- Can I just say the salary covers all award entitlements?
- Not safely. Courts and the Fair Work Ombudsman require a set-off clause to identify the specific entitlements being absorbed and to allow verification that the employee wasn't underpaid over a reconciliation period. A bare inclusive-salary statement is a common and costly drafting mistake.
- Is a restraint of trade clause automatically enforceable?
- No. It's enforceable only to the extent a court considers it reasonably necessary to protect a legitimate interest, such as client connections or confidential information. Overly broad restraints in time, area or scope are often struck down, so calibration to the specific role matters.
- What happens if I hire someone under the wrong award?
- The employee is still entitled to whatever the correct award actually provides, regardless of what the contract says, and underpayments can be pursued retrospectively with penalties. We check award coverage as a first step precisely to avoid this exposure.
- Can probation periods be longer than six months?
- You can agree a longer period, but the minimum employment period for unfair dismissal protection under the Fair Work Act is generally six months (twelve for small business employers), so a longer probation clause doesn't extend the time before those protections apply.
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