Employment Contracts - 3 Most Common Mistakes

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What are the three most common mistakes we see with employment contracts?

I’m Hamish Procter from Aitken Legal. Employment Contracts are a very important tool that all employers should use to protect their business. Aitken Legal review hundreds of Employment Contracts for employers each year and we want to share with you three common mistakes we often see:

1. The first common mistake is employers using Employment Contracts that they previously signed when they were employees, or which they have otherwise found on the internet. We strongly caution employers against either practice, as there is no guarantee that either type of document is current or legally accurate. We often see Employment Contracts which have been repurposed and which contain references to old legislation, or even overseas legislation at times. This places your business at risk – using repurposed contracts is just not a gamble worth taking.

2. The second common mistake is having a Contract that does not properly explain the remuneration arrangement in place with the employee. Particularly in circumstances where an employer is paying an annualised salary or loaded hourly rate which is intended to absorb particular award entitlements, it is imperative that the salary or loaded rate be properly explained in an Employment Contract. Otherwise you run the risk of employees claiming entitlements in addition to that intended all-inclusive remuneration arrangement.

3. The third common mistake that we see is where employers choose brevity over detail when having Contracts prepared. In a previous video, we discussed the importance of having properly drafted Confidential Information, Intellectual Property and Restraint of Trade clauses in Employment Contracts. If you use a brief non-detailed Contract, then you are depriving yourself of the first opportunity an employer has to protect itself in the employment relationship. Whilst Employment Contracts should not be full of legal jargon, or be hard to understand, they do need to be detailed to properly protect your interests.

Contact Aitken Legal and speak with an experienced employment lawyer about your Employment Contracts, and whether they are properly protecting your business.

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Видео Employment Contracts - 3 Most Common Mistakes канала Aitken Legal - Employment Law Specialists