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Employment Contract

Post-Employment Restrictions

Post-Employment Restrictions

Will the employee be restricted by any of the following clauses after employment ends?

Frequently Asked Questions
Why is it important that the restrictions are reasonable?If your restriction is broader or longer than the court feels is reasonable, a judge may strike the clause from the contract, which leaves you with no restriction at all. Therefore, you should ensure that your restrictions are reasonable.

A restriction of 6 months is usually considered reasonable for a non-compete clause depending on the nature of the job. However, a longer period may be reasonable for a non-solicitation clause.
What is a confidentiality clause?Confidentiality Clause
An employer can protect their confidential information by including a clause in the employment contract that says that all confidential information including work product belongs to the employer. Confidential information is broadly defined to protect everything from trade secrets to customer lists.

Confidentiality Period
Confidentiality obligations can be for a fixed period or can be indefinite until the confidential information enters the public domain and becomes public knowledge. If a fixed term is selected then remember that confidentiality protection ceases after the period has lapsed. Once the confidentiality period is over the employee can then use or disclose the confidential information in any way they choose without the permission of the employer.
What is a non-solicitation clause?Non-Solicitation Clause
A non-solicitation clause prevents the employee from inducing other employees or contractors from leaving the employer or from interfering with the employer's relationship with other employees in general. This means that the employee cannot invite the employer's other employees to move to another workplace.

Courts MAY NOT enforce a non-solicitation clause if:
  • the clause could be harmful to the public (e.g. if it could depress the local economy)

  • the clause is broader than necessary to protect the employer

  • the clause has unreasonable time and geographic restrictions.
What is a non-competition clause?Non-Competition Clause
A non-competition clause prevents the employee from unfairly competing with the employer after the employment is terminated.

Remember: Courts MAY NOT enforce a non-competition clause if:
  • the clause could be harmful to the public (if it restricts commerce and depresses the local economy)

  • the clause is broader than necessary to protect the employer

  • the clause would cause undue hardship on the employee (too difficult for the employee to find a new job) or

  • the clause has unreasonable time or geographic restrictions

As a matter of public policy, courts have said that a former employee cannot be prevented from working in their chosen trade except to the extent that is necessary to protect the previous employer. A non-competition clause may be upheld however where a former employee could have found reasonable employment that was not in direct competition with the former employer.
In general, when deciding whether to include a non-compete clause, it would be unfair to restrict the future employment of an average employee (carpenter or secretary) who does not have access to confidential information.

Your Employment Contract

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THIS EMPLOYMENT CONTRACT (this "Agreement") dated this ________ day of ________________, ________


____________________________________________ of ____________________________________________
(the "Employer")


- AND -

____________________________________________ of ____________________________________________
(the "Employee")



  1. The Employer is of the opinion that the Employee has the necessary qualifications, experience and abilities to assist and benefit the Employer in its business.
  2. The Employer desires to employ the Employee and the Employee has agreed to accept and enter such employment upon the terms and conditions set out in this Agreement.

IN CONSIDERATION OF the matters described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Agreement agree as follows:

  1. Commencement Date and Term
  2. The Employee will commence permanent full-time employment with the Employer on the 1st day of October, 2023 (the "Commencement Date").
  3. Job Title and Description
  4. The initial job title of the Employee will be the following: ____________________ The initial job duties the Employee will be expected to perform will be the following:
  5. The Employee agrees to be employed on the terms and conditions set out in this Agreement. The Employee agrees to be subject to the general supervision of and act pursuant to the orders, advice and direction of the Employer.
  6. The Employee will perform any and all duties as requested by the Employer that are reasonable and that are customarily performed by a person holding a similar position in the industry or business of the Employer.
  7. The Employer may make changes to the job title or duties of the Employee where the changes would be considered reasonable for a similar position in the industry or business of the Employer. The Employee's job title or duties may be changed by agreement and with the approval of both the Employee and the Employer or after a notice period required under law.
  8. The Employee agrees to abide by the Employer's rules, regulations, policies and practices, including those concerning work schedules, vacation and sick leave, as they may from time to time be adopted or modified.
  9. Employee Compensation
  10. Compensation paid to the Employee for the services rendered by the Employee as required by this Agreement (the "Compensation") will include an hourly wage at the rate of $__________.
  11. This Compensation will be payable twice per month while this Agreement is in force. The Employer is entitled to deduct from the Employee's Compensation, or from any other compensation in whatever form, any applicable deductions and remittances as required by law.
  12. The Employee understands and agrees that any additional remuneration paid to the Employee in the form of bonuses or other similar incentive remuneration will rest in the sole discretion of the Employer and that the Employee will not earn or accrue any right to incentive remuneration by reason of the Employee's employment.
  13. The Employer will reimburse the Employee for all reasonable expenses, in accordance with the Employer's lawful policies as in effect from time to time, including but not limited to, any travel and entertainment expenses incurred by the Employee in connection with the business of the Employer. Expenses will be paid within a reasonable time after submission of acceptable supporting documentation.
  14. Superannuation
  15. If the Employee qualifies under the relevant legislation or under an award, the Employer will pay an amount as required by legislation or any relevant award into a complying superannuation fund or retirement savings account. The Employer will make such contributions at least once every quarter and will provide the Employee with written details of such contributions at least once every quarter.
  16. Place of Work
  17. The Employee's primary place of work will be at the following location:
    • ____________________________________________________________
  18. Time of Work
  19. The Employee's normal hours of work, including breaks, ("Normal Hours of Work") are as follows: ______________________________
  20. However, the Employee will, on receiving reasonable notice from the Employer, work additional hours and/or hours outside of the Employee's Normal Hours of Work as deemed necessary by the Employer to meet the business needs of the Employer.
  21. Employee Benefits
  22. The Employee will be entitled to only those additional benefits that are currently available as described in the lawful provisions of the Employer's employment booklets, manuals, and policy documents or as required by law.
  23. Employer discretionary benefits are subject to change, without compensation, upon the Employer providing the Employee with 60 days written notice of that change and providing that any change to those benefits is taken generally with respect to other employees and does not single out the Employee.
  24. Vacation
  25. The Employee will be entitled to two weeks of paid vacation each year during the term of this Agreement, or the amount of paid vacation as entitled by law, whichever is greater.
  26. The times and dates for any vacation will be determined by mutual agreement between the Employer and the Employee.
  27. Upon termination of employment, the Employer will compensate the Employee for any accrued but unused vacation.
  28. Other Leave and Minimum Conditions of Employment
  29. The Employee is entitled to long service leave, sick leave, bereavement leave, parental leave and paid public holidays in accordance with relevant legislation and awards in effect during the Employee's employment.
  30. Duty to Devote Full Time
  31. The Employee agrees to devote full-time efforts, as an employee of the Employer, to the employment duties and obligations as described in this Agreement.
  32. Conflict of Interest
  33. During the term of the Employee's active employment with the Employer, it is understood and agreed that any business opportunity relating to or similar to the Employer's actual or reasonably anticipated business opportunities (with the exception of personal investments in less than 5% of the equity of a business, investments in established family businesses, real estate, or investments in stocks and bonds traded on public stock exchanges) coming to the attention of the Employee, is an opportunity belonging to the Employer. Therefore, the Employee will advise the Employer of the opportunity and cannot pursue the opportunity, directly or indirectly, without the written consent of the Employer.
  34. During the term of the Employee's active employment with the Employer, the Employee will not, directly or indirectly, engage or participate in any other business activities that the Employer, in its reasonable discretion, determines to be in conflict with the best interests of the Employer without the written consent of the Employer.
  35. Contract Binding Authority
  36. Notwithstanding any other term or condition expressed or implied in this Agreement to the contrary, the Employee will not have the authority to enter into any contracts or commitments for or on the behalf of the Employer without first obtaining the express written consent of the Employer.
  37. Termination Due to Discontinuance of Business
  38. Notwithstanding any other term or condition expressed or implied in this Agreement, in the event that the Employer will discontinue operating its business at the location where the Employee is employed, then, at the Employer's sole option, and as permitted by law, this Agreement will terminate as of the last day of the month in which the Employer ceases operations at such location with the same force and effect as if such last day of the month were originally set as the Termination Date of this Agreement.
  39. Termination of Employment
  40. Where there is just cause for termination, the Employer may terminate the Employee's employment without notice, as permitted by law.
  41. The Employee and the Employer agree that reasonable and sufficient notice of termination of employment by the Employer is the greater of one (1) week or any minimum notice required by law.
  42. If the Employee wishes to terminate this employment with the Employer, the Employee will provide the Employer with the greater of one (1) week and the minimum required by law. As an alternative, if the Employee co-operates with the training and development of a replacement, then sufficient notice is given if it is sufficient notice to allow the Employer to find and train the replacement.
  43. The Termination Date specified by either the Employee or the Employer may expire on any day of the month and upon the Termination Date the Employer will forthwith pay to the Employee any outstanding portion of the compensation including any accrued vacation and banked time, if any, calculated to the Termination Date.
  44. Once notice has been given by either party for any reason, the Employee and the Employer agree to execute their duties and obligations under this Agreement diligently and in good faith through to the end of the notice period. The Employer may not make any changes to compensation or any other term or condition of this Agreement between the time termination notice is given through to the end of the notice period.
  45. Remedies
  46. In the event of a breach or threatened breach by the Employee of any of the provisions of this Agreement, the Employee agrees that the Employer is entitled to a permanent injunction, in addition to and not in limitation of any other rights and remedies available to the Employer at law or in equity, in order to prevent or restrain any such breach by the Employee or by the Employee's partners, agents, representatives, servants, employees, and/or any and all persons directly or indirectly acting for or with the Employee.
  47. Severability
  48. The Employer and the Employee acknowledge that this Agreement is reasonable, valid and enforceable. However, if any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be changed in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.
  49. Notices
  50. Any notices, deliveries, requests, demands or other communications required here will be deemed to be completed when hand-delivered, delivered by agent, or seven (7) days after being placed in the post, postage prepaid, to the parties at the following addresses or as the parties may later designate in writing:
    • Employer:









    • Employee:









  51. Modification of Agreement
  52. Any amendment or modification of this Agreement or additional obligation assumed by either party in connection with this Agreement will only be binding if evidenced in writing signed by each party or an authorised representative of each party.
  53. Governing Law
  54. This Agreement will be construed in accordance with and governed by the laws of the state of South Australia.
  55. Definitions
  56. For the purpose of this Agreement the following definitions will apply:
    1. 'Termination Date' means the date specified in this Agreement or in a subsequent notice by either the Employee or the Employer to be the last day of employment under this Agreement. The parties acknowledge that various provisions of this Agreement will survive the Termination Date.
  57. General Provisions
  58. Time is of the essence in this Agreement.
  59. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  60. No failure or delay by either party to this Agreement in exercising any power, right or privilege provided in this Agreement will operate as a waiver, nor will any single or partial exercise of such rights, powers or privileges preclude any further exercise of them or the exercise of any other right, power or privilege provided in this Agreement.
  61. This Agreement will inure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns, as the case may be, of the Employer and the Employee.
  62. This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.
  63. If, at the time of execution of this Agreement, there is a pre-existing employment agreement still in effect between the parties to this Agreement, then in consideration of and as a condition of the parties entering into this Agreement and other valuable consideration, the receipt and sufficiency of which consideration is acknowledged, this Agreement will supersede any and all pre-existing employment agreements between the Employer and the Employee. Any duties, obligations and liabilities still in effect from any pre-existing employment agreement are void and no longer enforceable after execution of this Agreement.
  64. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or written. The parties to this Agreement stipulate that neither of them has made any representations with respect to the subject matter of this Agreement except such representations as are specifically set forth in this Agreement.

IN WITNESS WHEREOF, the parties have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.





Employment Contract Information

Alternate Names:

An Employment Contract is also called a/an:

  • Employment Agreement
  • Employee Contract
  • Job Contract
  • Job Agreement

What is an Employment Contract?

An Employment Contract is a contract used to establish the rights, responsibilities, and obligations of a working relationship between an employer and an employee.

Who is involved in an Employment Contract?

An Employment Contract involves:

  • An employer, who can be a person or an entity (an organisation or a corporation, for instance) and who is hiring another person to work for them
  • An employee, who is normally a person as opposed to an organisation or a corporation and who is being hired to work for an employer

If you are being hired to work for someone as an independent contractor as opposed to an employee, you should use an Independent Contractor Agreement instead.

What information is included in an Employment Contract?

Generally, an Employment Contract will include:

  • The employee's name and contact information
  • The name of the employer (who can be an individual, organisation, or corporation, depending on the situation) and their contact information
  • The place of employment's address or addresses
  • Particulars about the position, including job title and description, the average number of hours the employee will work, when the position will start, whether the position is permanent or temporary, etc.
  • Details about pay and benefits, including remuneration type (e.g. salary, hourly, etc.), pay period (e.g. weekly, fortnightly, etc.), rate of pay (e.g. $25 per hour, $75,000 a year, etc.), annual vacation time, and other benefits (such as paying toward a superannuation fund)
  • Technicalities regarding termination notice (the amount of notice that will be required by the employer to terminate the employee and vice versa)

Often, an Employment Contract will also include specific clauses restricting certain conduct during or after employment, such as:

  • Confidentiality clause: this clause helps employers keep confidential information private by prohibiting employees from inappropriately using or discussing company secrets, business strategies and plans, product information, and more
  • Non-solicitation clause: this clause prevents employees from encouraging coworkers to work for a new organisation
  • Non-compete clause: this clause stops employees from working for direct competitors during or after employment; to be enforceable, the terms in a non-compete clause, sometimes called a non-competition clause, must be reasonable (e.g. using a reasonable time period, using a limited and reasonable geographical location, etc.)

What is the difference between a full time and part time employee?

In most cases, an employee is classified as full time or part time:

  • A full time employee is generally defined as someone who works approximately 30 hours or more a week. They are typically given benefits (such as a health and dental package) that other employees may not receive.
  • A part time employee is generally defined as someone who works less than 30 hours a week with a guaranteed minimum number of hours (e.g. they typically work 15 hours a week).

Notice is generally required to terminate a full or part time employee.

A person can also be hired as a casual employee (someone who is not expected to work a set number of hours per week and who only works when needed). Notice may not be required when terminating a casual employee.

What is the difference between a permanent and temporary employee?

Generally, an employee will be hired on a permanent or temporary basis:

  • A permanent employee is an employee who has been hired indefinitely, meaning they do not have a predetermined end date in their Employment Contract.
  • A temporary employee is an employee who has been hired for a specific period of time, meaning an end date has likely been included in their Employment Contract; a seasonal employee (a person who is hired for a particular period or season, like the summer season) is a type of temporary worker.

You may also see someone get hired as a contract worker. Typically, a contract worker refers to an independent contractor or subcontractor, which means an Independent Contractor Agreement will be used to outline the working relationship instead of an Employment Contract.

Related Documents:

  • Employment Offer Letter: Use an Employment Offer Letter to extend an employment offer, including conditions like start date and hourly rate, to a potential new hire.
  • Employment Termination Letter: Send an Employment Termination Letter to an employee to formally advise them that they've been terminated from their position.
  • Employee Evaluation: Create an Employee Evaluation to review an employee’s performance and advise them of any areas for improvement.
  • Resignation Letter: Send a Resignation Letter to an employer to formally advise them that you will be ending your employment with their company.
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