An employment agreement is an agreement between an employer and an employee that sets out the rights and obligations of each party. An employment agreement can be purely verbal, or it can be in writing (or a combination of both). The length of written employment agreements can vary from one single page up to 20-30 pages for more senior employees.

Written employment agreements are important because they spell out to both parties the rules of the employment relationship, and the expectations of the employer and the employee, and this can minimise the risk of a dispute later arising.

The terms of any employment agreement are subject to the National Employment Standards, and an applicable Modern Award.