Many individuals consider an employment contract a mere formality. They review the salary, glance at the start date, and sign on the dotted line. However, a contract is more than just a document to confirm your job offer – it’s a legal agreement that establishes the conditions of your professional life for the duration of your employment, and often for a period of time after that.
Looking at it as a risk document, rather than just something to sign, will alter your perspective on what you read and what you negotiate.
Start With The Legal Floor, Not The Offer
Before you bargain over anything, you have to understand what the law gives you already. The National Employment Standards (NES) define 11 basic rights that are protected regardless of what is stated in a contract. If the conditions of an employer fall below those minimum standards – regarding annual leave, personal leave, maximum weekly hours, or notice periods – those conditions are legally void.
Modern Awards operate under the same principle. An Award related to your industry or position may establish the minimum wage rates and conditions that replace the terms of a contract that are less favorable. Employers don’t always disclose when an Award is applicable, so it’s a good idea to verify before you start negotiating. If you use the legal baseline, you will immediately find out whether any “default” condition is below your current entitlement.
The Clauses That Follow You Out The Door
Restraint of trade provisions and IP assignment clauses deserve close attention, because they outlast your employment.
A non-compete clause can restrict you from working for competitors, approaching clients, or even hiring former colleagues after you leave. The enforceability of these clauses varies – courts will consider the geographic scope, the duration, and whether there’s a legitimate business interest being protected. But “varies” isn’t the same as “won’t apply to you.” A broad non-compete in a niche industry can genuinely limit your options.
Narrow the scope wherever you can. Push for a shorter duration, tighter geographic limits, and a definition of “competitor” that’s actually specific. The same applies to IP assignment clauses. Standard wording often assigns everything you create during your employment to the employer. That’s reasonable for work you do in your role, but it shouldn’t reach your side projects, pre-existing IP, or work done entirely outside business hours on your own equipment. Get the clause scoped to work created directly in the performance of your role, using company resources.
For executive-level roles, multi-jurisdictional non-competes, or anything with equity or deferred compensation attached, getting advice from an employment lawyer canberra before you sign is worth the cost. They can identify the clauses that carry real risk before they become a problem.
The Salary Figure Isn’t Always What You Think
This is the point at which a lot of employees stumble. A base salary and a total remuneration package are not the same thing, and contracts often obfuscate the issue.
If you’ve been given your remuneration as a single dollar figure that is “inclusive of superannuation,” then you are earning less cash than you had assumed. Employers must pay the Superannuation Guarantee on ordinary earnings, which in some cases allows that contribution to be sucked out of the total figure you have been quoted, rather than being paid on top of it.
Discretionary bonuses are also a minefield. The bonus clause may state that the payment “is at the absolute discretion of the employer,” which is virtually legally unchallengeable. Pressure for KPIs that will objectively determine your entitlement to a bonus and written details about how those sums are to be calculated before you sign your contract. A vague bonus clause is worse than useless.
Notice Periods And What Happens In Between
Notice periods are often one-sided in practice, even when they look balanced on paper. Employees are typically required to give four or six weeks’ notice. Employers, in reality, can walk someone out the door immediately with payment in lieu. That’s not always unfair, but it’s worth understanding exactly what you’re agreeing to.
Ask for genuine reciprocity. If you’re required to give eight weeks’ notice, the employer should be required to give you the same. You should also check whether the contract includes a gardening leave provision – this keeps you on full pay during your notice period while preventing you from starting a new role. Whether that’s a benefit or a restriction depends on your situation, but either way, you need to know it’s there.
The probationary period is another area where notice rights shrink significantly. Most contracts allow dismissal with very short notice during the probation window, which is standard – but make sure the probationary period length is reasonable and clearly defined.
Negotiate Before You Start, Not After
Almost 43% of hiring managers anticipate negotiation with job candidates regarding contract terms (Robert Half), but most of the negotiation ends with the salary. However, the non-monetary matters are the real source of your long-term risk.
After you’ve accepted the offer and started, your leverage to change terms plummets. The time to negotiate is before you sign. Read everything, ask questions, and don’t assume that anything in a contract is non-negotiable just because it’s been printed out and handed to you.
Leave a Reply