5 Key Clauses to Include in Employment Contracts for Your Company

A well-drafted employment contract sets clear expectations and protects both employer and employee. Here are five clauses you shouldn’t omit in Australia. 

1. Position, Duties & Probation

Define the role title, reporting lines and main responsibilities. Include a probation period (usually 3–6 months) with clear performance review criteria and notice requirements.

2. Remuneration & Benefits

State the base salary (or award rate), pay frequency, superannuation contribution, leave entitlements and any fringe benefits. Specify any bonus or incentive structures.

3. Confidentiality & Intellectual Property

Require employees to keep company information confidential during and after employment. Assign ownership of any intellectual property created in the course of their duties to the employer.

4. Notice Period & Termination

Specify the notice period for resignation and termination (minimum under the Fair Work Act) and define grounds for summary dismissal (e.g., serious misconduct).

5. Restrictive Covenants

Include post-employment restraints—non-compete, non-solicitation of clients or staff—for a reasonable scope, duration and geographic area to protect your business interests.

Need Help Drafting Your Contracts?

Contact LawWise Australia for custom employment agreements and compliance advice tailored to your industry.

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