Employment Agreement

When an employee embarks on a new job opportunity, the employer will usually have the employee sign an employment agreement. You may have asked yourself who benefits from this arrangement, and if it is necessary in the first place.

Employment agreements are crucial documents that outline the terms and conditions of employment and sets out employee and employer expectations and obligations. Therefore It should clearly define the rights and responsibilities of the employee and employer, with the purpose of establishing a productive and harmonious work environment.

A well-written employment agreement outlines the essential aspects of the employment relationship. This includes identifying the parties involved, specifying payment terms, outlining working hours and leave entitlements, and establishing termination rights.

While covering fundamental aspects of employment, an employment agreement can also be tailored to include provisions that offer additional benefits to the employer. It can address specifics such as the employer’s identity, commencement date, location of work, reporting structure, remuneration, and notice period for termination.

The following are some other important clauses that should be included in an employment agreement:

Intellectual property rights

In many industries an intellectual property rights clause essential as it clarifies ownership of intellectual property created during employment. Therefore employers retain rights to innovations developed by employees.

Restraint of trade

A restraint of trade clause in an employment agreement is also essential for employers as it can protect their business interests by stopping former employees from engaging in activities that could harm the company, such as competing with the business, soliciting existing clients and employees, or disclosing confidential information to third parties.

Clearly written restraint clauses provide clarity and certainty for both parties regarding an employee’s post-employment obligations. Thus reducing the likelihood of disputes arising, and deterring employees from engaging in such behaviour which may undermine the employer’s business interests.


Employers should also consider including a confidentiality clause in their employment agreement, as it can be relied on to protect the employer’s confidential information and trade secrets that are disclosed to their employees in the course of employment. In effect, this clause will outline expectations regarding the handling of confidential information and clearly sets out any boundaries and consequences for breaches.


Employment agreements are essential in establishing a clear and mutually beneficial employer-employee relationship. By clearly setting out employee and employer expectations and obligations, they provide transparency, minimise disputes, and establish a solid foundation for a productive and harmonious work environment.

Have questions regarding your Employment Agreement? get in touch with our expert team on 02 9964 0499 or use the contact form below.

Make an appointment to meet with our dedicated team today

  • This field is for validation purposes and should be left unchanged.

Follow us on Linkedin and Facebook

Related Articles


Adopting a New Company Constitution

A company constitution is essential in regulating the activities and management of companies. Read more about the complications that may arise in the process of replacing or establishing a new company constitution.

Read More

0 Comments3 Minutes

Fixed-Term Contracts

New Rules for Fixed Term Contracts

The 6th of December 2023 saw a rollout of a changes to fixed term employment contracts. Learn more about how these changes will affect both employers and employees.

Read More

0 Comments4 Minutes


Funding Your Relative’s Aged Care? Understanding RADs

What should you consider when taking contributing funds towards your relative's aged care fees? The payment of nursing home Refundable Accommodation Deposits or RAD and other aged care fees can be complicated and costly, and an elderly person entering care might not be able to afford their preferred accommodation on their own.

Read More

0 Comments3 Minutes

The articles on this website comprise legal general information and not legal advice. The general information presented here must not be relied upon without legal advice being sought. In the event that you wish to obtain legal advice on the contents of this general information you may do so by contacting our office or your existing solicitor.