7AprChange is the only constant
Posted on 7/04/2015 by Nine2Three
Everyone remembers that great analogy, that the only constant in life is change.
That is also true of your contracts of employment. The set up, clauses and content of employment contracts change regularly in line with legislation, precedents set in court cases and new employee claims.
Human Resources is a highly dynamic field. It is never stagnant as people are dynamic and therefore the practises of managing people changes constantly.
A contract is a contract. That means it is a legal agreement between parties and therefore either party can be held in breach of contract.
Businesses need to understand and respect this concept and ensure that their contracts do not make claims that they will be unable to uphold.
All common law employment contracts need to be compliant with the industrial relations laws of the day. So currently that means that all contracts need to be Fair Work Compliant. You can offer greater terms in your contract than are offered in the relevant Award or National Employment Standards, however just make sure that you are able to uphold these when the time comes.
Businesses may come to grief when they do not understand the meaning of clauses in their contracts and these clauses promise termination payouts, increased redundancy payments or increased notice periods .
I always say that there may be many things you can R&D from the internet (rip off & duplicate) but your contract is not one of them! You need to ensure two things when you are acquiring your contracts of employment:
1. You use a contract that is legally written from either a solicitor or a reputable HR practitioner who uses a solicitor.
2. You ensure that the person creating your contract understands your personal/business situation so the contract will not include clauses that do not pertain to your business.
Faults with contracts are often only found when you look back and are working out what you offered an employee at their termination. It is at this stage, that you may find that you have left yourself wide open to possible litigation if you breach the contract.
Wording is crucial in contracts – don’t use your own!
Beware of using industry body contracts and templates that you purchase yourself. They do not cover off on point 2 above, where the contract should have direct relevance to your business.
I can’t tell you the amount of clauses and information that used to be included in contracts that is now not included! But I can bet my bottom dollar, that many of these clauses are in your current contract and they just may make the avenue down which an employee can travel, when looking at litigation issues much wider!
These days, with contracts of employment – less is more! Use a professional!
Our HR Managment Solutions Division works with legally written contracts every day.
Feel free to give us a call regarding the contracts you use in your business! Call us today on 1300 923 000
Important Note: These articles have been prepared for general circulation and are circulated for general informational purposes only; these articles should not be regarded as business or investment advice. The articles represent the views of the writers and are subject to change without notice. Additionally, while every care has been taken in the preparation of the articles no representation or warranty as to accuracy or completeness of any statement is given. An individual or organisation should, before any business or investment decision is made, consider the appropriateness of the information in this document, and seek professional advice, having regard to objectives, situation and needs. This document is solely for the use of the party to whom it is provided.
Posted in Building Business | I Need HR Help
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