employment contracts & the importance of getting them right
TRANSCRIPT
![Page 1: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/1.jpg)
Chair:
Nick Duggal, Partner
Presenter:
Liz Aitken, Associate
EMPLOYMENT CONTRACTS & THE IMPORTANCE OF GETTING
THEM RIGHT
![Page 2: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/2.jpg)
The Importance Of
Contracts
Key Contract
Considerations
Implementation
1
2
3
![Page 3: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/3.jpg)
Clarify terms
End employment
Prevent disputes
Defend a claim
Protect commercial interests
Investment
![Page 4: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/4.jpg)
Rakic v John Lyng Insurance Building Solutions (Vic) Pty Ltd
Position accepted on the basis of “misleading representations” not
incorporated as term of contract
Representations didn’t eventuate
Court awarded compensation of over $300,000
Agreed terms – all of them!
![Page 5: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/5.jpg)
“No reliance” clause
Robertson v Knott Investments
Alleged representation that employment would continue for 3 years
Employment ended by reason of redundancy
Claim under trade practices law of reliance on misrepresentation
Court rejected the claim contract specified notice of termination
entitlement and “no reliance” clause
![Page 6: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/6.jpg)
Fixed
Term Casual
Part
Time
Characterise the Relationship
Full
Time
Contractor
![Page 7: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/7.jpg)
“Sham Contracting”
• Multi-factor test
• Prosecution by FWO
• Civil penalties
• Personal liability for
“involvement in a contravention”
![Page 8: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/8.jpg)
Contract
Enterprise
Agreement
Modern Award
Fair Work Act 2009
Legal Framework
![Page 9: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/9.jpg)
![Page 10: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/10.jpg)
Conditions of Engagement
• Pre-employment requirement
• Ongoing requirement of employment
• Grounds for dismissal?
O’Connell v Catholic Education Office [2016] FWCFB
![Page 11: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/11.jpg)
“All-In” Remuneration
• Flat rate or annualised salary
• “Better Off Overall” test
Strip Club audit
![Page 12: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/12.jpg)
“Off-Set” Clause
• In satisfaction of applicable entitlements
New Image Photographics Pty Ltd v Fair Work
Ombudsman [2013] FCA
“[there was] no designation by the employer of
any overpayment being referable to the
underpayments which had been made, and
certainly no agreement to that effect”
![Page 13: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/13.jpg)
Termination of Employment
Specify the notice period
× Alternative: “Reasonable Notice”
Quinn v Jack Chia Australia Limited
“Continuity” clause
![Page 14: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/14.jpg)
• Post-employment restraint
• Legitimate business interests
• “Reasonableness”:
• restricted activities
• distance and duration
Epichealth Pty Ltd v Peng-Kung Yang [2015] SCV
Restraint of Trade
![Page 15: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/15.jpg)
Workplace Policies
• Communicate standards
• Require employee compliance
• Avoid contractual obligations
• Retain flexibility & discretion
• Defend claims
Nikolich v Goldman Sachs [2007] FCAFC
James v Royal Bank of Scotland [2015] FCAFC
![Page 16: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/16.jpg)
Implementation
• Agreement to vary terms
• Consider incentive
• Recycle responsibly
![Page 17: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/17.jpg)
Wrap Up
• Key considerations
• Empower your business flexibility & discretion
• Complex environment keep them simple
![Page 18: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/18.jpg)
A streamlined process for:
Managing your Employment Contracts
• obtaining background
• limiting templates
• insertion of individual details
• maximising protections
• updates
• fixed, competitive pricing
![Page 19: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/19.jpg)
![Page 20: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/20.jpg)
Seminar Series 2016
1. Employment
Contracts
2. Ongoing
Management
3. Termination
of Employment
![Page 21: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/21.jpg)
Contact Us
Nicholas Duggal
Partner
TressCox Lawyers
T: 03 9602 9744
Elizabeth Aitken
Associate
TressCox Lawyers
T: 03 9602 9708
![Page 22: Employment Contracts & The Importance of Getting them Right](https://reader030.vdocument.in/reader030/viewer/2022013005/58ee5bea1a28ab7d4d8b4673/html5/thumbnails/22.jpg)
Disclaimer TressCox PowerPoint material does not constitute legal advice
The material on this PowerPoint has been produced by TressCox Lawyers and has been prepared as general information about TressCox and its services. It is not intended to provide legal
advice and, as such, the content does not constitute legal advice. Use of this PowerPoint does not create any solicitor-client relationship between the user and TressCox.
Copyright
The contents of this PowerPoint (Materials) may not be copied, reproduced, republished, uploaded, posted, transmitted or distributed in whole or part for any purpose other than
individual viewing of the PowerPoint without the express prior permission of TressCox. Unless otherwise indicated, copyright of the Materials is owned by TressCox. Modification of the
Materials or use of the Materials for any purpose will constitute a violation of the copyrights and other rights of TressCox.
Linked Sites
TressCox is not responsible for the content of any sites linked within this PowerPoint. The linked sites are attached for the convenience of the user only and may be accessed by the user
at the user’s own risk.
Privacy
TressCox is committed to protecting your privacy. In the course of our business we collect, use and disclose personal information provided to us by our clients and other users of
this PowerPoint. We do this in accordance with National Privacy Principles established by the Privacy Act 1988 (Cth). Please refer to our privacy statement for more details.
Jurisdiction
This PowerPoint is the property of TressCox. Legal content is based on laws applicable in the states and territories in Australia in which we practise. TressCox does not represent that it is
authorised to provide legal advice in all the jurisdictions from which this PowerPoint can be viewed.
Limitation of liability
To the extent permitted by the law, TressCox will not be liable for any damage, including loss of business or profits, in relation to usage of this PowerPoint. Where any law implies a
liability which cannot be excluded, any such liability is limited and provided for by the Competition and Consumer Act 2010.
www.tresscox.com.au
http://blog.tresscox.com.au/ linkedin.com/company/tresscox-lawyers twitter.com/TressCox