An employment contract sets the terms of a job. It can be written or verbal, but it cannot remove or reduce the minimum entitlements in the National Employment Standards, an award or an enterprise agreement. Put it in writing, name the employment type and give the required information statement.
By CrossNation Editorial Team. Sources checked 6 October 2026.
An employment contract is an agreement between an employer and employee that sets out terms and conditions of employment. It can be in writing or verbal.
Source: Fair Work Ombudsman: About employment contracts (retrieved 6 October 2026)
An employment contract can't remove or provide for less than an employee's minimum entitlements under the NES, an award or an enterprise agreement.
Source: Fair Work Ombudsman: About employment contracts (retrieved 6 October 2026)
A fixed term contract terminates at the end of a set period, and employees on a new fixed term contract must be given the Fixed Term Contract Information Statement.
Source: Fair Work Ombudsman: About employment contracts (retrieved 6 October 2026)
A person is a casual employee if the employment has no firm advance commitment to ongoing work and they are entitled to a casual loading or specific casual pay rate.
Source: Fair Work Ombudsman: Casual employees (retrieved 6 October 2026)
Every new employee must get the Fair Work Information Statement, and every new casual employee the Casual Employment Information Statement at the same time.
Source: Fair Work Ombudsman: Fair Work Information Statement (retrieved 6 October 2026)
The Fair Work Ombudsman describes an employment contract as an agreement between an employer and an employee that sets out terms and conditions of employment. It may also be called an agreement, terms and conditions of employment, or a workplace contract. Most employees are covered by the national workplace relations system, so their minimum entitlements come from the National Employment Standards, any award or enterprise agreement that applies, and the Fair Work Act. The contract sits on top of those minimums.
A verbal contract can be legally binding, but it is hard to prove and easy to misremember. A written contract records the role, pay, hours, location, probation, notice, and the award or agreement that applies. It also gives you a place to state whether the person is full-time, part-time or casual. A casual employee is one with no firm advance commitment to ongoing work, so a contract that promises regular ongoing hours can undermine the casual label.
A contract cannot provide for less than the employee's minimum entitlements under the NES, the award or the agreement. Terms that try to do so have no effect for the part that falls below the minimum. The Fair Work Ombudsman also says there are laws that stop employers from including pay secrecy terms in employment contracts, because employees have the right to share, or not share, information about their pay. Keep the contract within these limits and check the Fair Work page for the latest detail.
A fixed-term contract ends at the end of a set period, such as a date, a period of time or a season, and employees on a new fixed-term contract must be given the Fixed Term Contract Information Statement. New casual employees must be given the Casual Employment Information Statement. Every new employee must receive the Fair Work Information Statement before, or as soon as possible after, they start. Give the right statements with the contract and record the date.
Use the Fair Work Ombudsman's Make an employment contract tool as a starting point, add the terms specific to your business, and have a lawyer review it if the role is senior, involves restraints or confidential information, or has unusual pay. Do not copy another business's contract without checking the award, since the award decides many of the terms. Our checklist below lists the clauses most employers need.
| Clause | What to cover |
|---|---|
| Parties and start date | Legal name of employer and employee, start date, place of work |
| Position and duties | Title, main duties and reporting line, linked to the position description |
| Employment type | Full-time, part-time, casual or fixed term, with the end date for fixed term |
| Hours and roster | Ordinary hours, how the roster is set, overtime arrangements as the award requires |
| Pay and super | Rate or salary, pay frequency, super at the rate required by law, award classification |
| Probation | Length, review date and that NES entitlements continue during probation |
| Leave | Leave entitlements under the NES, the award or agreement, and how to request leave |
| Notice and termination | Notice each side gives, at least the minimum the law or award requires |
| Policies and confidentiality | Workplace policies that apply, confidentiality and use of company property |
The fee is 12% of the candidate's annual salary, charged only when a placement succeeds.
No. The Fair Work Ombudsman says a contract can be written or verbal. A written contract is strongly advisable because it records what was agreed.
No. The contract can't provide for less than the award or the NES. Where it does, the award or NES minimum still applies.
No firm advance commitment to ongoing work, assessed on the real substance of the relationship, and an entitlement to a casual loading or specific casual rate. A regular pattern of work alone does not make someone permanent.
You need to state the end date or period and give the Fixed Term Contract Information Statement. Other rules apply to repeated or long fixed-term contracts, so check the Fair Work page.
Many employers do. Probation is usually 3 to 6 months. Employees on probation keep their NES entitlements and are still entitled to notice if employment ends. Our probation guide explains more.
The Fair Work Ombudsman has a Make an employment contract tool and other templates. Review any template against your award or agreement before you use it.
