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Employment Agreement Template

An employment agreement is the full written contract of employment between an employer and an employee. Use our free Australian template to set out duties, remuneration, hours, leave, confidentiality, and termination in a contract that complies with the Fair Work Act 2009 (Cth), the National Employment Standards, and applicable modern awards.

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EMPLOYMENT AGREEMENT
Full-time Employment · State Of New South Wales, Australia
EMPLOYER
Harbour Digital Pty Ltd
Level 12, 1 Martin Place, Sydney NSW 2000 · ABN 12 345 678 901
By: Sarah J. Mitchell, Chief Executive Officer
EMPLOYEE
Emma L. Watson
88 Bourke Street, Surry Hills NSW 2010
By: emma.watson@email.com.au
Senior Software Engineer — Engineering
Start: 1 May 2026 · Annual Salary: 120,000.00 AUD
This Employment Agreement (this "Agreement") is entered into as of 1 May 2026 by and between Harbour Digital Pty Ltd (the "Employer") and Emma L. Watson (the "Employee"). The Employer agrees to employ the Employee, and the Employee accepts employment, on the terms and conditions set out below. This Agreement operates in conjunction with, and is subject to, the minimum standards prescribed by the Fair Work Act 2009 (Cth) ("FWA") and the applicable National Employment Standards ("NES") set out in FWA ss. 61–131.
1.
POSITION AND DUTIES
The Employer employs the Employee in the position of Senior Software Engineer within the Engineering department, reporting to Head of Engineering. The Employee shall faithfully and diligently perform all duties and responsibilities associated with the position and such other duties as may be reasonably assigned by the Employer from time to time. The primary place of work shall be: Level 12, 1 Martin Place, Sydney NSW 2000 (Hybrid). The Employer may, from time to time on reasonable notice and for genuine operational reasons, require the Employee to work at different locations or remotely, subject to consultation and applicable award or enterprise agreement requirements.
2.
COMMENCEMENT AND EMPLOYMENT TYPE
The Employee's employment shall commence on 1 May 2026 as a Full-Time Employee. The employment is ongoing unless terminated in accordance with this Agreement and applicable law. Any prior service with a related entity or predecessor employer shall be recognised for the purposes of the NES only if agreed in writing by the Employer.
3.
REMUNERATION AND SUPERANNUATION
The Employee shall receive a gross annual salary of 120,000.00 AUD, payable on a fortnightly basis, subject to all applicable statutory deductions including income tax withholding (PAYG) in accordance with the Taxation Administration Act 1953 (Cth) Sch. 1 Part 2-5. Superannuation: The Employer shall contribute an amount equal to 11.5% of the Employee's ordinary time earnings (the Superannuation Guarantee rate for 2024–25 under the Superannuation Guarantee (Administration) Act 1992 (Cth) ("SGA Act") s. 19) to the Employee's nominated complying superannuation fund. The Employee nominates Australian Retirement Trust as their preferred superannuation fund, subject to the fund's eligibility requirements and the Employer's obligation to offer a choice of fund under the SGA Act. The superannuation guarantee rate is subject to legislated increases in future financial years.
4.
HOURS OF WORK
The Employee's ordinary hours of work shall be 38 hours per week, generally scheduled Flexible / Hybrid Schedule, subject to the applicable modern award, enterprise agreement, or the FWA s. 62 (maximum weekly hours: 38 ordinary hours for full-time employees plus reasonable additional hours). Overtime, if applicable, shall be compensated in accordance with the relevant modern award or enterprise agreement, or the NES where no such instrument applies. The Employer may require the Employee to work reasonable additional hours consistent with the Employee's duties.
5.
LEAVE ENTITLEMENTS (NES)
The Employee is entitled to the following minimum leave entitlements under the NES (Fair Work Act 2009 (Cth) ss. 87–107):

(a) Annual Leave (FWA s. 87): 4 weeks (20 days) of paid annual leave per year of service (NES minimum for full-time employees; shift workers may be entitled to 5 weeks). Annual leave accrues progressively throughout the year and carries over if unused.

(b) Personal/Carer's Leave (FWA s. 96): 10 days of paid personal/carer's leave per year of service (NES minimum), accruing progressively. This leave may be used for personal illness or injury or to care for a member of the Employee's immediate family or household.

(c) Compassionate Leave (FWA s. 104): 2 days' paid compassionate leave per occasion of a member of the immediate family or household contracting a serious illness or injury, or on the death of such a person.

(d) Community Service Leave (FWA s. 108): Unpaid leave for jury service (subject to make-up pay for the first 10 days under FWA s. 111) and voluntary emergency management activity.

(e) Parental Leave (FWA ss. 70–85): Up to 12 months' unpaid parental leave (with a right to request a further 12 months) in accordance with the NES. Government-funded Paid Parental Leave may also apply under the Paid Parental Leave Act 2010 (Cth).

Nothing in this Agreement shall limit the Employee's minimum NES entitlements. Any enterprise agreement or modern award applying to the employment may provide additional or different entitlements.
6.
PROBATIONARY PERIOD
The Employee shall be subject to a probationary period of 3 months commencing on the start date. During the probationary period, the Employer may assess the Employee's performance, competence, and suitability for the position. The Employer may terminate the employment during the probationary period by providing such notice as is required under the NES (FWA s. 117) — generally one week for employees who have completed at least one month of continuous service — or payment in lieu thereof. Employees dismissed during or at the end of a probationary period within the minimum employment period (6 months for employers with 15 or more employees; 12 months for smaller employers under FWA s. 383) are not entitled to make an unfair dismissal claim. Performance reviews shall be conducted as follows: At 6 weeks and at end of probation (3 months).
7.
ADDITIONAL BENEFITS
The Employee shall be eligible to participate in the Employer's enhanced group benefits plan (including health insurance, income protection, and/or other benefits as determined by the Employer from time to time), commencing after a waiting period of 90 days from commencement, subject to the plan's terms, conditions, and eligibility requirements. The Employer reserves the right to amend or discontinue any benefit plan, subject to applicable consultation obligations and any enterprise agreement requirements. Any benefits provided do not form a term of this Agreement and may be varied without additional compensation to the Employee.
8.
BONUS AND INCENTIVE ARRANGEMENTS
The Employee may be eligible for additional compensation as follows:

Performance bonus of up to 10% of annual salary, payable annually following a performance review in February each year, at the sole discretion of the Employer based on individual and company performance targets.

Any bonus or incentive payment is entirely discretionary, does not form part of the Employee's ordinary time earnings for superannuation purposes unless required by law, and does not create a right to future payments. The Employer's decision regarding bonus amounts and eligibility is final, subject to any applicable modern award or enterprise agreement.
9.
TERMINATION
(a) Notice by Employer — Without Cause (FWA s. 117): The Employer shall provide not less than 4 weeks' written notice (or payment in lieu) upon termination without cause, provided this is never less than the NES minimum under FWA s. 117 for the Employee's length of service. Employees aged 45 or over with at least two years of service are entitled to one additional week's notice under FWA s. 117(3).

(b) Termination for Serious Misconduct: The Employer may summarily dismiss the Employee (without notice or pay in lieu) for serious misconduct within the meaning of the Fair Work Regulations 2009 reg. 1.07, including wilful disobedience, fraud, serious breach of health and safety obligations, or conduct that causes serious and imminent risk to the Employer or a third party.

(c) Resignation by Employee: The Employee shall provide 4 weeks' written notice of resignation. The Employer may accept a shorter notice period or direct the Employee to not work during all or part of the notice period, subject to payment obligations.

(d) Return of Property: Upon termination for any reason, the Employee shall immediately return all Employer property, devices, access credentials, confidential documents, and materials. The final pay shall include all accrued but untaken annual leave entitlements as required by FWA s. 90.

(e) Unfair Dismissal: The Employee's right to make an unfair dismissal claim under FWA Part 3-2 commences after the minimum employment period (6 months for employers with 15+ employees; 12 months for smaller employers).
10.
CONFIDENTIALITY, INTELLECTUAL PROPERTY AND RESTRAINT
Confidentiality: During employment and at all times thereafter, the Employee shall hold in strict confidence and not disclose or use for any purpose other than the performance of duties any Confidential Information of the Employer, including trade secrets, business strategies, client data, financial information, technical data, and any information not generally available to the public. The Employee acknowledges that the Employer handles personal information of customers and staff subject to the Privacy Act 1988 (Cth) and the Australian Privacy Principles, and shall comply with those requirements.

Intellectual Property: All inventions, improvements, work product, and intellectual property created by the Employee in the course of employment shall vest in and belong exclusively to the Employer pursuant to the Copyright Act 1968 (Cth) s. 35(6) (works made in course of employment) and applicable patent law. The Employee shall promptly disclose all such intellectual property to the Employer and execute any documents necessary to vest or perfect the Employer's ownership. To the maximum extent permitted by law, the Employee consents to any acts or omissions by the Employer that would otherwise infringe the Employee's moral rights under the Copyright Act 1968 (Cth).

Post-Employment Restraint of Trade: For a period of 6 months following the termination of employment (for whatever reason), the Employee shall not, without the Employer's prior written consent, directly or indirectly engage in, or be interested in, any business that is in direct competition with the Employer's business within the State of New South Wales, whether as principal, employee, director, partner, contractor, agent, or otherwise. The parties acknowledge that this restraint is reasonable and necessary to protect the Employer's legitimate business interests in its client relationships, confidential information, and goodwill. In the event a court considers the restraint too broad, this clause shall be read down to the maximum extent enforceable, consistent with the Restraints of Trade Act 1976 (NSW) and equivalent state legislation. Each combination of temporal and geographic limitation constitutes a separate and independent restraint.
11.
WORKPLACE CONDUCT, HEALTH AND SAFETY
The Employee shall comply with all Employer policies and procedures, including workplace conduct, anti-discrimination, anti-harassment, and workplace health and safety policies. The Employer is committed to providing a workplace free from discrimination and harassment in accordance with the applicable state and territory Anti-Discrimination Acts, the Australian Human Rights Commission Act 1986 (Cth), the Sex Discrimination Act 1984 (Cth), the Racial Discrimination Act 1975 (Cth), and the Disability Discrimination Act 1992 (Cth). The Employee must comply with all applicable work health and safety legislation, including the Work Health and Safety Act 2011 (Cth) and equivalent state/territory legislation. Breaches of workplace conduct obligations may result in disciplinary action up to and including summary dismissal for serious misconduct.
12.
GOVERNING LAW
This Agreement is governed by and construed in accordance with the laws of the State of New South Wales and, where applicable, the laws of the Commonwealth of Australia — including the Fair Work Act 2009 (Cth), the National Employment Standards (FWA ss. 61–131), and the Superannuation Guarantee (Administration) Act 1992 (Cth). Nothing in this Agreement shall be interpreted as limiting or excluding any minimum employment entitlement under applicable legislation. In the event of any conflict between this Agreement and a minimum NES or award entitlement, the minimum standard shall prevail.
13.
GENERAL PROVISIONS
Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the Employee's employment and supersedes all prior representations, negotiations, and agreements. Amendment: No amendment shall be valid unless in writing and signed by both parties. Severability: If any provision is found invalid or unenforceable, the remaining provisions shall remain in full force and effect. Electronic Execution: This Agreement may be executed electronically; electronic signatures are valid under the Electronic Transactions Act 1999 (Cth) and applicable state legislation. Counterparts: This Agreement may be executed in counterparts, each constituting an original. Modern Award / Enterprise Agreement: The employment may be covered by a modern award or enterprise agreement under the Fair Work Act 2009 (Cth). Where such instrument applies, it operates in conjunction with this Agreement and the NES; a term of this Agreement that is less favourable than the applicable award or enterprise agreement term has no effect to that extent.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.
EMPLOYER
Sarah J. Mitchell
Chief Executive Officer
Harbour Digital Pty Ltd
Date: ____________________
EMPLOYEE
Emma L. Watson
Date: ____________________

What Is an Employment Agreement?

An employment agreement is a written contract between an employer and an employee that sets out the terms and conditions of employment. Unlike a brief offer letter, a full employment agreement covers duties, remuneration, hours, leave, intellectual property, confidentiality, restraint of trade, and termination in detail. It governs the parties' relationship throughout the employment and after it ends.

In Australia, employment contracts operate within a dense regulatory framework. The Fair Work Act 2009 (Cth) creates the National Employment Standards (NES) as a statutory floor of minimum entitlements; modern awards or enterprise agreements may impose higher minimum terms; and state work health and safety, equal opportunity, and anti-discrimination laws overlay further obligations. Contract terms less favourable than the statutory minimum are unenforceable to that extent.

Employment agreements are used for full-time, part-time, casual, and fixed-term engagements. The Fair Work Act limits the use of fixed-term contracts (from 6 December 2023, generally capped at 2 years and 2 renewals), and casual employment must meet the definition in section 15A (introduced by the Closing Loopholes No. 2 Act) and the new "employee choice" pathway to permanent employment effective 26 August 2024.

What's Covered in This Template

Our employment agreement template covers every term a modern Australian workplace needs.

Party Details

Employer legal name, ABN, and employee personal details.

Position and Duties

Position title, reporting line, duties, and flexibility clause.

Employment Type and Term

Full-time, part-time, casual, or fixed-term with clear commencement date.

Remuneration and Superannuation

Salary, allowances, bonuses, and superannuation at the prescribed rate.

Hours of Work

Ordinary hours, reasonable additional hours, and overtime arrangements.

Leave Entitlements

Annual, personal/carer's, compassionate, parental, and long service leave.

Confidentiality

Obligation to protect employer confidential information.

Intellectual Property

Ownership of IP created by the employee in the course of employment.

Restraint of Trade

Cascading non-compete and non-solicitation clauses, where appropriate.

Workplace Policies

Incorporation of workplace policies and code of conduct.

Termination

Notice periods, summary dismissal grounds, and redundancy terms.

Privacy

Handling of employee personal information under the Privacy Act 1988 (Cth).

How to Create an Employment Agreement

Follow these steps to produce a comprehensive employment agreement in minutes.

  1. 1

    Enter Employer and Employee Details

    Provide employer legal name, ABN, and employee personal details.

  2. 2

    Configure Role and Remuneration

    Specify position, duties, employment type, salary, and superannuation.

  3. 3

    Set Hours and Leave

    Configure ordinary hours and leave entitlements consistent with the NES and any award.

  4. 4

    Add Protective Clauses

    Include confidentiality, IP assignment, and appropriate restraints of trade.

  5. 5

    Review and Download

    Check termination, policies, and governing state, then download the PDF.

Legal Considerations

Employment agreements are heavily regulated; careful drafting is essential to avoid unenforceable terms.

This template is for informational purposes only and does not constitute legal advice. Consult a qualified Australian employment lawyer before engaging executive or specialist staff on custom terms.

Reviewed for Australian law

National Employment Standards

Part 2-2 of the Fair Work Act 2009 (Cth) sets out the NES. Key entitlements include maximum 38 ordinary weekly hours, four weeks' paid annual leave, 10 days' personal/carer's leave, paid parental leave entitlements, and notice of termination from 1 to 5 weeks plus an additional week for employees over 45 with more than 2 years' service. Contract terms below the NES are void to that extent.

Modern Awards and Enterprise Agreements

Most employees are covered by a modern award made by the Fair Work Commission (for example, the Clerks—Private Sector Award 2020 or the Professional Employees Award 2020). Awards set minimum wages, penalty rates, overtime, and allowances. Enterprise agreements may supersede the award. Contract terms must satisfy the "better off overall test" where a high-income guarantee under section 330 is not in place.

Unfair Dismissal and General Protections

Employees who complete the minimum employment period (6 months, or 12 months for small business employers of fewer than 15 employees) and earn below the high-income threshold (currently $175,000 as indexed) have unfair dismissal rights under Part 3-2. All employees have general protections rights under Part 3-1 against adverse action taken because of a protected attribute, workplace right, or industrial activity.

Restraint of Trade Enforceability

Post-employment restraints are enforceable only if reasonable and no broader than necessary to protect a legitimate business interest. In NSW, section 4 of the Restraints of Trade Act 1976 allows unreasonable restraints to be read down. Outside NSW, cascading drafting is typically required. The Commonwealth is currently reviewing restraint of trade laws and further reform is possible.

Frequently Asked Questions

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