Employment and contractor clauses

Employment contracts sit on top of a floor set by law, so a clause can add to minimum entitlements but cannot take them away. These pages explain the clauses that appear in employment and contractor agreements and where the law limits what they can say.

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Pay and entitlements

Remuneration sets the salary or rate and how it is paid, bonus sets any discretionary or target based payment, and overtime says whether extra hours are paid separately or absorbed into a salary. Superannuation covers the employer's contribution, and leave covers annual, personal and other leave. In Australia most of these sit under the Fair Work Act, the National Employment Standards and any award or enterprise agreement, so the pages say where a clause only restates the minimum and where it can genuinely give more. Read remuneration and overtime together, since a salary that absorbs overtime still has to pass the award test.

Starting, changing and ending

Probation sets a trial period at the start, notice period sets how much warning either side gives to end the job, and garden leave lets an employer keep paying someone while keeping them away from work during that notice. Redundancy covers what happens when a role is no longer needed, including consultation and redundancy pay. Flexible work covers requests to change hours or location, which some employees have a legal right to make. These clauses interact, so a notice period that is shorter than the legal minimum simply does not work.

Restraints and contractors

Non compete, non solicitation and restraint of trade limit what someone can do after leaving, and courts only enforce them to the extent they protect a real business interest for a reasonable time and area. The independent contractor clause is different in kind: it states that a person is not an employee, but the label does not decide the question, which turns on how the relationship actually works. Read that page before hiring a contractor on a long or exclusive arrangement. Each page carries sample wording and variants, and none of it is legal advice.

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