9 Frequent Clauses of Employment Agreement

9 Frequent Clauses of Employment Agreement

If you are starting a new job, you should have received or will receive an employment contract or employment agreement from your company. Your employment agreement is an essential document because it describes both you and your company’s rights and responsibilities. If you have accepted an employment agreement from your new company or business, it is worth taking a few moments to examine the agreement before receiving and starting the job. This article will examine the key clauses that you should always verify before beginning a new job.

Clauses of Employment Agreement

    1. Overtime and Hours of Work

Your agreement should approach if your company expects you to work additional hours and whether you will be given overtime for these hours.

    1. Leave

You should verify your agreement for the leave entitlements that the employer produces. Some regular leave requirements which your employer may be required to give you under the National Employment Standard involve annual leave, and private/carers leave. Employers may decide to implement extra paid leave as a benefit to employees.

    1. Expenses and Salary

Your company may be required to pay for some expenses on top of your payment or salary. For instance, if the work you are managing needs travel or a vehicle, equipment, you should assure that the agreement addresses these expenses. You should make sure there is a suitable plan which describes the amount of the allowance your company will pay you.

    1. Work, Safety, Health, and Duties

You should also guarantee your agreement has a proper workplace health and security provision. It should describe the workplace responsibilities that both you and your company will have to comply with under the law.

    1. Termination and Redundancy
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The agreement should place out how you or your company can cancel the agreement. End of the agreement should be performed in agreement with the National Employment Standards (or the relevant honour or enterprise contract). This condition will normally set out your obligations upon the end of the employment contract.

    1. Restraint of Trade

Your agreement may also constitute a reduction or restraint of trade clause. A restraint of trade condition will set out the particular period after termination of your contract where you will not be permitted to compete with your company. It may also involve a non-solicitation clause which will stop you from:

  • Poaching or soliciting customers
  • Taking other operators or employees with you when you leave a role; or
  • Interfering with the contact the company has with its suppliers.
    1. Confidentiality

Employment agreements will typically set out complete confidentiality clauses. However, employees will possess a common law responsibility to maintain confidentiality, even if not explicitly covered in the contract.

    1. Intellectual Property

Most employment agreements allow any intellectual property you create through your employment to your company. If the contract does not address this, your company will still likely hold any intellectual property you create.

    1. Continuous Obligations on Termination

You should take note of the conditions that will still be in force after you cancel the employment agreement contractor. These involve the:

  • Confidentiality clause
  • Restraint of trade clause
  • Intellectual property clause.

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