What to look out for in an employment contract

What to look out for in an employment contract

Reading any contract before you sign it is essential, but there are some things you should keep a special eye out for when signing an employment contract.

Award Coverage

You should always check that the salary you have agreed upon with your employer is on par with the award rates and no less. Double check what rates are associated with your position and clarify any concerns with your employer.

Restraint of trade

An employer may add a ‘restraint of trade’ clause to your contract. This may impact whether you can work in the same industry later on, so make sure that the employer hasn’t done this without first discussing the details with them first.

Changing terms of contract

Your employer may have added a clause which gives them the sole right to make any changes to the contract (such as duties, pay, seniority or location of work). Although employers should not be changing any terms and conditions in the contract without first notifying you, having this clause in the contract will make it more difficult for you to argue any changes. Check to make sure the employer doesn’t have sole ability.

Carefully read all aspects of the contract to make sure that they reflect national standards and any specific agreements you had made with your employer.


If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.

Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.

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