Your business – what documents do you need?
How do these documents interrelate?
Your business – what documents do you need?
When establishing, altering or clarifying pay and conditions you will need to refer to, or supply, the following documents, in this order:
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A list of the documents dealing with Pay and Conditions in each of these categories is as follows (note that some documents are to be released shortly) :
(1) Policies
CONDITIONS
LEAVE
PAY
Wages and conditions for an employee can be specified in one, or a combination of, the following documents:
Awards apply to many businesses, whereas a Collective Agreement, AWA or ITEA will apply only to employees of your business. Conditions applicable to your own employees can be covered in a collective agreement, or you can have an ITEA if you meet the requirements (see the Agreements section), or an individual contract of employment, for each individual employee.
(3) Contract of employment
(4) Forms
- Advice re cashing in leave
- AWA notifications/ lodgements letter
- Change – letter to employee, advising of
- Concurrent (other) employment – details of, letter
- Concurrent employment – confirmation of, letter
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Garnishee advice
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- Leave without pay - confirmation of, letter
- Letter - Return part time work - Parental Leave
- Maternity leave conditions – confirmation of, letter
- Pay advice Letter
- Payment out of notice period
- Parking Letter
- Remuneration review letter - stays the same
- Remuneration review letter - increase
- Secondment - confirmation of, letter
- Sick leave - notice of expiry
- Superannuation choice of funds letter
How do these documents interrelate?
An individual written contract is a document drafted to record a proposed agreement between a particular employer and employee. This means the employer and employee have agreed to terms and conditions that may differ from (but not undercut) what would otherwise be provided in an award, a collective agreement, an unregistered collective agreement or custom and practice at the workplace.
The individual written contract can also fulfil the purpose of consolidating the special or particular terms and conditions of that particular relationship into one document.
Award terms are not automatically incorporated into a contract of employment. The parties need to actually provide for such incorporation – if they so wish.
The argument against incorporating award terms into contracts of employment is that if award terms become contract terms then they are enforceable as contractual provisions and substantial damages may flow from breach. Award provisions have a more limited scope for enforcement – in industrial tribunals – where the damages are limited.
Working with these documents
Prior to establishing the pay and conditions for your business, ensure you have the appropriate policies in place.
Where appropriate, negotiate particular pay and conditions with the employee(s) and come to an agreement.
Decide what the appropriate mechanism for recording this agreement will be: that is, for example, a contract of employment, an award, or a registered agreement.
Refer to any relevant awards which may already regulate the employment of this type of worker.
Draw up a draft contract of employment with terms and conditions of employment explicitly stated. This contract will underlie the discussions and correspondence which you will have with prospective employees. Alternatively you may settle for an AWA, or Collective Agreement.
During the course of employment, the terms and conditions which were established at the start will inevitably change. A pay increase is the most common variation to the initial contract.
It is important to set out any such changes to the initial contract/award/agreement in writing, so that there is no room for confusion. Use the sample correspondence for this purpose.
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