A basic employment agreement template can save an employer time, but only if it reflects the actual role and the minimum entitlements that apply. Before a new employee starts, the employer should confirm the employment type, duties, pay, hours, award coverage, leave and notice arrangements, then record those terms in plain English.

This guide explains what to include in a basic employment agreement in Australia, what a template cannot do, and the checks an employer should complete before issuing it. The framework is the Fair Work Act 2009, the National Employment Standards and any applicable Modern Award or enterprise agreement.

Why use a basic employment agreement template?

A written agreement gives the employer and employee a shared record of the arrangement. It can reduce disputes about what was promised, support consistent onboarding and make it easier to update HR records. It also prompts the employer to address practical details that are often missed in an informal offer, such as the pay cycle, ordinary hours, place of work and notice.

A template is a starting point, not a compliance shortcut. The employee’s actual duties and working pattern determine which rules apply. An agreement that says “full-time” when the person regularly works a different arrangement, or that describes a salary without checking award entitlements, creates avoidable risk.

What should a basic employment agreement include?

1. Parties, role and commencement

Name the legal employing entity and the employee, state the position title and describe the core duties. Include the commencement date, reporting line and the primary place of work. A useful duties clause allows reasonable changes that are consistent with the role, while avoiding an unlimited right to change the job.

2. Employment type and hours

State whether the employee is full-time, part-time or casual. For full-time and part-time employees, specify ordinary hours and how rosters or reasonable additional hours will be managed. For part-time work, record the agreed pattern and explain how changes are approved. For casual work, the agreement should accurately describe the casual arrangement and the applicable loading or entitlements.

3. Pay and applicable award

Set out the rate or salary, pay frequency and payment method. Identify the applicable Modern Award and classification where relevant. Before setting an annual salary, compare it with the award’s minimum hourly rates, overtime, penalties, allowances and leave-related obligations. A salary clause should explain what entitlements it is intended to satisfy and include a reconciliation safeguard where appropriate.

Employers should also check whether an enterprise agreement applies. The Fair Work Ombudsman pay and wages guidance is a useful starting point, but role-specific advice may be needed where the arrangement is complex.

4. Leave and minimum entitlements

Refer to annual leave, personal or carer’s leave, compassionate leave, family and domestic violence leave, community service leave, public holidays and any other relevant entitlement. The agreement should say these entitlements are provided in accordance with the law and applicable industrial instrument. Do not replace statutory entitlements with a vague statement that the employee receives “all benefits required by law” if clearer drafting is possible.

5. Probation, performance and policies

If there is a probationary period, state its length and the review process. Make clear that probation does not remove minimum entitlements or permit unlawful termination. Refer the employee to workplace policies, while avoiding wording that accidentally turns every policy into a contractual promise. Policies should be accessible, current and applied consistently.

6. Confidentiality, intellectual property and conflicts

Use a proportionate confidentiality clause covering business information, customer information and personal information. If the employee creates documents, systems, designs or other work product, address ownership of intellectual property to the extent permitted by law. Include a conflict-of-interest process rather than relying on an overly broad restraint clause that may not be enforceable.

7. Notice and termination

State the notice arrangements, subject to the minimum notice requirements that apply. Explain that serious misconduct may justify summary dismissal where the legal test is met, but do not treat a template clause as proof that a particular event is serious misconduct. Include return-of-property and post-employment confidentiality obligations where relevant.

How should employers check a template before using it?

Start by comparing the job description with the proposed classification. Check the current award, pay rate, ordinary hours, breaks, overtime, penalties and allowances. Then test the contract against the National Employment Standards and any enterprise agreement. The Fair Work Commission awards information can help employers locate the relevant instrument.

Next, check the commercial details: legal entity name, address, commencement date, salary, pay cycle, superannuation arrangements, work location and manager. Remove placeholders, inconsistent pronouns and clauses copied from another role. Make sure the agreement matches what was said in the offer and what the business can actually administer.

Finally, provide the agreement and the Fair Work Information Statement at the appropriate time, allow questions, obtain a signed copy and store it securely. Keep a record of later variations, updated policies and any award or pay reviews.

Common mistakes with basic employment agreements

• Using a generic template without checking award coverage or classification.
• Describing a salary as “all inclusive” without testing award overtime, penalty and allowance obligations.
• Calling a worker casual while rostering them as permanent and ignoring the legal characteristics of casual employment.
• Including a broad restraint or unilateral variation clause that is unlikely to protect the business.
• Failing to update the agreement when the role, hours, location or pay changes.

These errors are often discovered after a resignation, complaint or underpayment audit. A clear agreement cannot remove every risk, but it gives the employer a better foundation for fair, consistent management.

Where to get an employment agreement template

Employers can start with the employment agreement templates available through Fair Work Centre, then tailor the document to the role and applicable industrial instrument. For broader onboarding documents, see the general employment documents hub and the free employment documents resources.

Where the agreement includes a salary offset, restraint, incentive scheme, complex award coverage or unusual working arrangement, obtain employer-side guidance before the document is signed. The cost of checking the agreement early is usually lower than correcting a contract dispute later.

General guidance only: This article is general information for Australian employers and is not a substitute for advice about a particular employee or workplace.