And if you have contractors, you should have an Independent Contractor Agreement.

Why is having written Employment or Independent Contractor Agreements in place so important for your business?

• They confirm the basis of employment – such as whether that person is casual, permanent, or an independent contractor.

Having this in writing from the outset is important in confirming that person’s status within your business and their eligibility for certain entitlements.

• These agreements provide a clear outline of the position, and duties to be performed, and set out clear expectations on employee conduct.

This becomes very important if you ever have any performance management issues with that particular employee, or if they’re a contractor, you feel they’re not meeting the role or duties you agreed to at the outset.

• Having a written employment agreement will confirm important matters relevant to that particular employee, such as their probation period, remuneration, award classification, and the days and hours of work expected.

Again, having these matters in writing becomes extremely relevant if the employee isn’t meeting your expectations.

• Written agreements will set out an agreed process on termination of employment, or how any disciplinary action may be commenced.
• Some agreements will also stipulate the employee or contractor’s obligations as to confidentiality, and your intellectual property rights as the employer and business owner.

If prepared correctly, these obligations can be imposed post-engagement and provide you with recourse to protect your business from your intellectual property, trade secrets, know-how, and client network or other staff members being taken by former employees or contractors.

• When a person has signed a written agreement such as restraints they should be less likely to set up a competing business using all of your hard work and contracts.