Business Research Task : Employment Issues

1642 Words Mar 15th, 2016 7 Pages
Commerce Research Task: Employment Issues

Different types of employment contracts

Awards are legal documents detailing the minimum terms and conditions of an employee’s job which involves wage rates, sick leave, holidays, overtime and other various minimum conditions. Employees are covered only by the award specific to their occupation or industry. If employees deem an award in their industry unfair, Fair Work Australia (FWA) are responsible for reviewing the award and if it is unfair, adjusting it.

Enterprise Agreements are when employers negotiate with a group of employees or union about the pay and conditions of the job. All enterprise agreements are checked by FWA to ensure that they meet the minimum conditions specified in awards.
Enterprise agreements:
• can replace an award or be used as an addition to awards
• must be written
• must have the approval of all involved parties
• should have an expiry date
• refrain from including unlawful conditions.

Common law contracts are confidential, legally binding contracts where the employer and an individual employee negotiate about the pay and the conditions of the job. In these contracts, employees are not under any awards or enterprise agreements. However, similar to enterprise agreements, common law contracts are not enforceable unless they meet the minimum conditions set by the awards and laws (Chapman and Freak, 2012).

Advantages and Disadvantages of different types of employment contracts…
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