What is an employment contract?

An Employment contract is an employment document that is signed by both employer and employee before the employee commences work. It is common in Australia for new employees to be given an employment contract to read and sign. Some employment conditions are under the influence of collective agreements, such as trade union agreements, while others are under the influence of federal laws, such as minimum hourly rates of pay. However, every employment contract is unique as it includes the conditions which the employer has to take into account as well as all the requirements, rights, and obligations that are unique to that employer/employee relationship.

What is normally included in an employment contract? 

Employment contracts set out the terms and conditions of employment that both employer and employee are expected to follow. These include such things as:

• hours of work per week;
• whether overtime is paid separately;
• wages or salary;
• rights to sick and holiday pay;
• how often wage or salary payments are paid;
• duties of the employer, i.e. duty statement;
• expectations of employment, e.g. dress standards, agreement to follow safety rules, and use of safety equipment;
• obligations of the employer and employee if there is an employment dispute.

The 3 main types of employment contracts in Australia 

The three main types of the employment contract are:

1. Permanent employment contracts: these do not stipulate the date of termination of employment. Permanent employees may be employed full-time or part-time.
2. Temporary or fixed-term employment contracts: these are for a specific time period. 
3. Casual employment contracts: the hours of employment may be subject to change and the period of employment is not defined.

When an employment contract should be translated

There are several reasons why an employment contract should be translated. Some Australian businesses rely on foreign workers who come to Australia on fixed-term, temporary contracts. This is necessary because these businesses don’t seem to be able to find enough Australian workers to fill the vacancies on offer. Traditionally, foreign backpackers on working holiday visas as well as Pacific Islanders fill the gap in many horticultural and agricultural sectors. This gap became significantly wider when the pandemic first stopped the movement of foreign workers into Australia and many backpackers went home. 

These foreign workers may not be totally fluent in English, the official language used in Australia, so a translated version of the employment contract makes a lot of sense. Translated employment contracts make it easier for employee to understand their rights and obligations, how much they should be paid, the hours to be worked, and termination agreements. For the employer, the fact that the employee understands exactly what they are signing avoids misunderstanding and potential friction if a dispute arises.

Companies that have overseas branches, employ overseas workers, or have subcontracted part of their business to an overseas company that employs workers who speak a different language may also profit from a translation of the employment contract.

Conclusion

If your Australian-based company employs workers whose fluency in English is not that good, you should consider having your employment contracts translated. Contract translation should only be done by competent, professional contract translators.

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