Industrial RelationsWhy is it essential for your business to have employment agreements in place for all your employees?
The Employment Agreement will clearly define every aspect of the employment situation.
The main purpose of an Employment Agreement is a clear determination of the employment framework.
This determination gives employers a certainty of receiving labor for their business for a set amount of time and clarifies the actions available to them in the case of the sudden loss of that resource.
An Employment Agreement is a binding document, signed between an employer and the employee. In most cases, employment agreements are aimed at protecting the employee, but they are also vital in protecting employers and their businesses.
Entering into an agreement is a good way to formalise the partnership, hence the need for an employment agreement.
The employer receives confirmation that the employee understands what is expected of them in their role as an employee.
They may wish to include a confidentiality clause in the agreement to protect confidential and often sensitive information to ensure protection for the business, and, if a breach occurs, what steps the employer can take.
The employee receives detailed guidelines on the expected remuneration and entitlements for their efforts and how that relates to minimum wage and conditions as enforced by Fair Work.
Possible bonuses are explained and clearly defined along with hours of work and other terms and conditions of employment.
It should detail the steps that an employee should take should a situation arise causing them discomfort or concern and set out any terms and conditions for resolving these problems that are amicable to both sides.
The agreement will clearly define the boundaries that will minimise the chance of a costly dispute and require the intervention of the courts and will bind both employer and employee to the agreed situation and processes.
And finally, the agreement will explain what is and is not acceptable to both sides in this agreement and what steps are involved should a dispute occur to amicably settle any issues or misunderstandings.
It is a really good idea for employers to prepare an employment agreement that works in tandem with a related Position Description which will offer a further definition of the requirements placed on the employee.
With this clarity, both sides will best understand their relationship and the requirements placed on the employee and employer to get the most benefit from the employment for them both.
A carefully drafted and well-executed agreement will create the basis for employer and employee satisfaction.
Assurance HR includes the preparation, drafting, and revision of Employment Agreements as an important part of the range of professional services that they provide to businesses of all kinds, both in Tasmania and across the country.
Not only can they provide your business with systems and documentation that are needed in relation to Human Resources, Industrial Relations, and Workplace Health and Safety, they also offer ongoing support to maintain this initial structuring into the future so that the business owner can get on with running their business.
For further information on Employment Agreements or any other area of your business where we can assist, please click the red button below and book a FREE one-to-one appointment with one of our professional consultants.
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