Types of

Employment
Contracts

IN YOUR BOOKS DRAW THE FOLLOWING

Awards

Employment
Contracts

Individual
Agreements

Enterprise
Agreements
Common Law
Employment
Agreements
SingleEnterprise

MultiEnterprise

INSTRUCTIONS
For each type of Contract you are to
Define it
Explain the legal requirement
Advantages
Disadvantages
Complete the questions at the end of the slide

Employment Contract
The most basic relationship
in employment and the
workplace is between
employer and employee.
An employment contract
is a legally binding, formal
agreement between
employer and employee.

 A written contract
encourages the parties to
clarify the key duties and
responsibilities of a job.
An employment contract
usually contains an
agreement on hours of work,
pay and conditions, and
other entitlements such as

1- Award
Awards are legally
enforceable
determinations made my
federal or state industrial
tribunals that set out the
terms of employment (i.e
pay and conditions) usually

 Employees are
classified under an
award if they are paid
at the rate of pay
specified in the award
and are not paid more
than the award rate

 Awards are the

minimum legal
requirement for
setting pay and
conditions for an
occupation or
industry.

Advantages

Disadvantages

Set minimum
pay and
conditions
Cover all
employees
performing
similar job
Protect
employees
from

Inflexiblemay not suit

all
employees
Prevent
recognition
of individual
initiative.

2- Enterprise
Agreements
These are collective agreements

made at a workplace (enterprise) level

between an employer and a group of
employees about terms and conditions
of employment.
Under the Fair Work Act 2009 there
are a few types of enterprise
agreements.

Single-enterprise agreements
Multi-enterprise agreements

Single-enterprise
agreements

Made between a
single employer
and a group of
employees.

Multi-enterprise
agreements

Made between two or

more employers and
groups of their
employees. This may
occur if they share
common funding,
operate collaboratively
and have a common

Advantages

Disadvantages

Possibility of
Consultation
undermining
with and
award
involvement of
standards, with
employees
some employees
Possibility of
working longer
improved pay
hours
and conditions Possibility of job
losses
Access to
Greater inequity
training
in
wage
rates
Greater

3- Individual Agreements

An individual agreement
is between an individual
employee and their
employer on the terms
of employment such as
pay and conditions for
employee.

 An individual contract
may specify all terms of
employment or
alternatively may
reference an award for
some conditions and/or
the setting of pay, such
as an over award

Advantages

Disadvantages

May end up
May reach a
with a below
pay agreement
award wage
that is above

Can
be
award wage.
stripped of
Reach an
some
agreement
entitlements
that entitles
granted to
you to better
those who are
conditions.
in award

4- Common Law Employment

Contracts

A common law contract

is when employers and
employees have the
right to sue for
compensation if either
party doe snot fulfil their
part of the contract.

 These cover
employees who are
not under an award
or enterprise
agreement.

 These are common

among managerial
employees and are
signed individuallycontents are secret.

Advantages

Disadvantages

Right to sue for

No union
compensation if
representation
employment
Possible
conditions are
exploitation or
not met.
employees due
Flexibility to suit
to unfair
the varied needs
bargaining
of individuals
positions
Individual
Expense of any
initiative
court case if
rewarded.
either parties

Add the following to your

glossary

Apprenticeship
Cadetship
Employment contract
Enterprise agreement
Award
Industrial tribunal

Questions
1- List the benefits that the
employer and employee
receive under an employment
contract.
2- What is an award? List four
issues outlined in an award.
3- Under what circumstances
might an employer offer
above-award conditions?

4- Explain what is meant by A

verbal employment contract
is not worth the paper it is
written on.
5- Explain the difference
between an enterprise
agreement and a common
law contract.
6- What type of employee is
usually covered by a common