Employment contracts, Above Award Rates and Written Warnings, we answer your questions here.

Do I have to give three warnings before I terminate an employee?

There is no specific legal requirement to give an employee exactly three written warnings before terminating their employment. However, the Fair Work Commission typically expects employers to follow a fair and reasonable process before deciding to terminate an employee especially when the reason for termination is related to poor performance or misconduct.

If I pay my employees above the modern Award, does the Award still apply?

Yes, the relevant Award still applies even if you pay above the Award rate. Paying above the Award rate or offering an all-inclusive rate does not exempt you from adhering to the other conditions outlined in the Award.

A modern Award establishes the minimum terms and conditions of employment, in addition to the National Employment Standards (NES). These conditions typically include:

• Minimum pay rates
• Overtime provisions, including penalty rates and break entitlements
• Ordinary hours of work
• Termination and redundancy provisions

While paying above the Award rate is permissible, it does not replace the Award itself or the conditions it provides. Employers must still ensure that the employee is better off overall with the above-Award pay rate compared to being paid strictly under the Award. Additionally, it’s important to provide written documentation to the employee detailing what is included in the above-Award rate.

Do I legally need a written contract of employment?

It is not strictly required by law, however, having a written contract of employment is highly recommended. A contract of employment clearly outlines the terms and conditions of employment, which helps to avoid misunderstandings or disputes between the employer and the employee. It provides clarity on matters such as job responsibilities, rates of pay, working hours, leave entitlements, termination procedures, and other important aspects of the employment relationship.

A well-drafted employment contract can protect both parties and serve as a reference point in case of any disagreements or issues that may arise during the course of employment.

Want More?

Have a burning question or want more information on the above topics? The Workplace Relations and Legal Team are here to assist you and your business in all employment related matters. For assistance or more information, please contact the Workplace Relations and Legal Team at 02 6175 5900.