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Top FIVE Mistakes to avoid when making employment contracts

Published: December 7, 2023

Are you making these common mistakes with employment contracts? Business Development Partner Will Mendoza talks about the common mistakes business owners end up making which can potentially cost them in the long run.

Read Transcript

Top five mistakes to avoid,

when making employment contracts.

As an employer,

you may enter into an employee agreement

outlining the terms

of an employment relationship.

These are called employment contracts.

They provide important protections

to employers,

business owners and employees.

It's easy to make a mistake,

so what are the top

five things to look out for?

One: Ignoring worker protection rights.

Employees are protected

by national employment standards,

with or without a contract.

You cannot provide

less than the minimum pay rates

or entitlement under the law,

even if it's signed off by the employee.

Two: Using the same contract for part-time,

fixed-term contract employees,

temps and permanent workers.

Worker protection laws provide

different levels

of benefits and guarantees

for workers in different categories.

Any employment contract you create

should recognize their status

and comply with the laws

applicable to them.

Using the right contract

for your employee is very important.

Three: Mistaking contracts

for employment policies.

An employment

contract sets out the obligation

or rights of the employer

and the employee.

Contracts are enforceable

until both parties agree

to make a change to the agreement.

Policies are rules or requirements

that you want your employees

to adhere to.

You want to keep these

in a separate document

so that you can make changes

from time to time without needing

written approval from your employee.

Four: Not updating your contracts

and agreements regularly.

The laws change constantly,

and new regulations are routinely passed

in the field of employment law.

If your contract is more than a year

old or recent

regulations have been passed

that impact your employees,

you may need to review and update them.

and Five:

Not adhering to contract provisions.

Once a contract has been created,

you must follow

all obligations within it.

If you don't adhere to the agreement,

you can find yourself in

breach of the contract.

If you have any questions,

you can call our advice line today

and check out Bright Lightning,

our AI-powered platform

that offers instant reliable answers

to your questions on HR

and employment relations matters.

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