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Guide

Redundancy Process In Australia: Step By Step Guide

What Is Redundancy? A redundancy occurs when an employer decides that an employee’s job is no longer required due to changes in the operational needs of the business. Under the Fair Work Act, a redundancy is only considered genuine when the role itself disappears, the employer has consulted the employee as required by any applicable award or agreement, and all reasonable redeployment options have been explored. Redundancies typically arise from changes such as new technology, reduced demand, restructuring, automation, or the need to improve efficiency and reduce business costs. In these situations, employers may need to follow a formal redundancy process to ensure the decision is lawful and compliant. A redundancy is not genuine if the role still exists, if consultation obligations are ignored, or if the employer fails to consider suitable redeployment opportunities within the business or associated entities. How the Redundancy Process Works in Australia The redundancy process in Australia requires employers to follow a formal, Fair Work‑aligned sequence before ending employment. This includes identifying a genuine redundancy, consulting with the employee under any applicable award or agreement, exploring reasonable redeployment options, and issuing the correct documentation such as meeting invitations, outcome letters, notice of termination, and final pay details. Employers must ensure each step is lawful, transparent, and compliant with the Fair Work Act and modern award consultation requirements. Redundancy Process Step‑by‑Step (Employer Guide) The redundancy process involves a series of Fair Work‑aligned steps employers must follow before ending employment. The guide below walks you through each stage, from identifying a genuine redundancy to consultation, redeployment, and final pay. Step 1: Identify Genuine Redundancy Confirm the role is genuinely no longer required due to operational changes such as restructuring, reduced demand, or new technology. A redundancy is genuine when the role disappears, not when the employer replaces the person or rehires into the same position. Employers should document the business reasons (financials, restructure plans, organisational charts) to show the decision is based on operational need. Step 2: At‑risk notification Inform the employee that their role is “at risk” and consultation will begin. This typically occurs on Day 1, with written confirmation sent the same day or within 1-2 business days to formally record the discussion. Step 3: First consultation meeting Explain the proposed changes, why the role may be redundant, and invite initial feedback. The employee may bring a support person (colleague, union rep, or support worker), and employers must genuinely consider any suggestions to avoid redundancy. Step 4: Written invitation to formal meeting Provide a formal written invitation to the second consultation meeting outlining the proposed changes, potential impacts, and the employee’s right to a support person. This ensures transparency and compliance with award or agreement consultation requirements. Step 5: Second consultation meeting (24+ hours later) Hold the second meeting at least 24 hours after the invitation so the employee has reasonable time to prepare. This timing reflects Fair Work’s requirement to give employees a genuine opportunity to consider the proposal and present alternatives. If you’re unsure, a Peninsula dedicated HR Consultant can attend and support you throughout the meeting. Step 6: Explore redeployment options Assess whether any suitable alternative roles exist within the business or associated entities. Document all roles considered and offer any roles the employee could perform with minimal or reasonable retraining. If no suitable roles exist, or the employee refuses a suitable role, the redundancy may still proceed. If the employee refuses a suitable redeployment option, the redundancy can still proceed, and the employee remains entitled to redundancy pay. Step 7: Final consultation meeting Meet with the employee to deliver the preliminary outcome after considering all feedback and redeployment options. If redundancy is confirmed, explain the next steps including notice, entitlements, and when the outcome letter will be issued. Step 8: Outcome letter Issue the formal redundancy outcome letter within 1–2 business days of the final consultation meeting. The letter confirms the decision, outlines the reasons, summarises consultation, and provides the employee’s final day of employment. Step 9: Notice period + final pay Provide notice in line with the NES, award, or agreement, or pay the employee in lieu of notice. Final pay must be provided within 7 days of termination and include outstanding wages, accrued leave, redundancy pay (if applicable), and any other entitlements. Redundancy Consultation Timeline Stage Employer Action Typical timing Position at risk notification Employee told job is at risk Day 1 First consultation meeting Discuss proposed changes Day 1 Written invitation Formal invite to a second meeting Day 1 Second consultation meeting Employee gives feedback 24+ hours after Day 1 Redeployment assessment Employer checks alternative roles Day 2–5 Final consultation meeting Preliminary outcome delivered Day 3–7 Outcome letter Formal redundancy confirmation Same day Notice period NES or award-based Varies Redeployment Options (Employer Obligations) Employers must explore whether the employee could reasonably perform another role before confirming redundancy. This includes checking available positions across the business and any associated entities and documenting the assessment. What counts as “reasonable” redeployment A role is reasonable if the employee can perform it with their existing skills or with minimal retraining, and if the location or travel requirements are practical. Evidence employers should keep Keep records of all roles reviewed, why each role was or wasn’t suitable, and any discussions with the employee. This shows the employer genuinely explored alternatives before confirming redundancy. Employers should record how skill‑matching was assessed, any retraining considered, and why each role was or wasn’t suitable. Lower‑paid or alternative roles Employers should offer any role the employee could reasonably perform, even if it’s lower‑paid or outside their usual duties. If the employee refuses a suitable role, the redundancy can still proceed. (Aligns with redundancy redeployment, reasonable redeployment redundancy.) A redeployment option can still be reasonable even if it is lower‑paid, has different hours, or sits at a different classification level. Redundancy Outcome Documentation Checklist Employers must keep clear, written records throughout the redundancy process to demonstrate compliance with the Fair Work Act and any applicable award. This documentation supports transparency, protects the business if the decision is challenged, and ensures all steps are properly recorded. At-risk letter: A short written confirmation that the employee’s role is “at risk” and consultation has begun. It records the initial discussion and sets the foundation for the formal process. Meeting invitations: Formal written invitations outlining the purpose of the meeting, proposed changes, and the employee’s right to bring a support person. Meeting summaries: Brief written notes summarising discussions, feedback, and agreed actions to demonstrate genuine consultation. Redeployment evidence: Documentation showing which roles were reviewed, why each role was or wasn’t suitable, and any discussions with the employee. Outcome letter: A formal letter confirming the redundancy decision, reasons, and final day of employment. Notice of termination: Written notice outlining the employee’s notice period under the NES, award, or agreement. Final pay breakdown: A summary of all entitlements owed, including wages, accrued leave, redundancy pay, and any additional payments. Notice Period & Final Pay Employers must provide the correct notice and final pay when redundancy is confirmed. These entitlements are set by the National Employment Standards (NES), any applicable award, and the employee’s length of service. NES minimum notice: The NES sets minimum notice periods ranging from 1 to 4 weeks depending on the employee’s length of service. Extra week for employees over 45: Employees aged 45+ with at least 2 years of service receive an additional week of notice under the NES. Redundancy pay: Redundancy pay ranges from 4 to 16 weeks based on continuous service, unless the employer is a small business (fewer than 15 employees). Final pay timing (7‑day rule): Final pay must be provided within 7 days of termination and include wages, accrued leave, redundancy pay, and any other entitlements. This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

Guide

What is Entitlement to Work?

There are thousands of foreign nationals living in Australia. Many arrive for studies and choose to stay on while some arrive with the purpose of migrating permanently. In most of these cases, the individual will need to find employment. These individuals will need to understand their legal right to work when seeking employment. This work eligibility meaning depends entirely on their specific visa type, duration, and conditions. As an employer or a business owner, any employee you recruit must have the right and entitlement to work. The right to work is directly tied to the compliance documents they provide, acting as essential right to work evidence. Remember, as a business owner, you are liable if you knowingly employ an illegal worker, knowing they are not an Australian or New Zealand citizen and are working without a visa, or in breach of their visa conditions. Before we review the required documents, let’s go through the general eligibility to work in australia across different groups. Eligibility and working rights in Australia Australian citizens Australian citizens have no restrictions placed on them working in Australia. However, a citizen may have their working rights restricted due to other factors, e.g. criminal history. New Zealand citizens New Zealand citizens do not need to apply for a visa to work in Australia but will usually receive a temporary one when they arrive that allows them to visit, study, stay and work in Australia. Some restrictions apply. Permanent residents Like Australian citizens, permanent residents have no restrictions placed on them working in Australia. A permanent resident, again like Australian citizens, may have their working rights restricted due to other factors, e.g. criminal history. Non-citizens with a valid visa Whether or not a prospective or current employee can work in Australia will depend on the conditions of the visa they hold. Further, their visa may restrict the type and hours per week of work they can undertake. There are many different visas in Australia that provide a person with a right to work. Peninsula recommends you speak to a specialist migration lawyer or agent to find out more about immigration legislation. It is your duty and obligation as an employer to ensure your employees are eligible to work in Australia. For instance, you can use the Australian government department of home affairs website which offers a Visa Entitlement Verification Online (VEVO) service to check the status of a current or prospective employee’s visa, which will tell you if they are allowed to work and any working conditions that apply. You need to make sure the employee has a valid working visa the entire time they work for you, so check it regularly, especially if their circumstances change. Tracking your right to work document requirements The following items establish undeniable proof of right to work in australia during the onboarding process: Australian birth certificate. Australian citizenship certificate. Australian or New Zealand passport. Evidence of permanent residence (ie. overseas passport with VEVO check). Certificate of Status for New Zealand Citizens in Australia and photo identification. Valid visa with permission to work (not all visas allow people to work). Obtain certified copies of any original, acceptable documents or have the original documents certified by someone authorised, like a Justice of the Peace (JP). These should always be in the employee's file and be updated if needed or if their circumstances change. Secondary right to work documents Australia prompts If the employee provides acceptable documentation but it is not an Australian government-issued form of photo identification, you can ask the employee to provide the following Australian-issued supporting documentation as proof of identity: Driver’s license. Medicare card. Enrolment to vote in Australian state or federal election. Tax File Number (TFN). References from previous employers and employment agencies. Tenancy agreements or home ownership details. Tertiary qualifications and trade certificate. Change of name certificates. These documents alone do not allow a person to legally work in Australia. They must only serve as supporting documentation along with any of the documents mentioned in the Proof of Right to Work section. Otherwise, they will still be considered an illegal worker in Australia. Right to work checks Executing a rigorous right to work check australia wide confirms the vital question: am i legally authorised to work in Australia for this specific enterprise? The check is a very crucial part of employment as an employer can face infringements or civil penalties if they allow an individual to work without the necessary entitlements. Ignorance of the employee’s legal status is not an excuse for employers. A Right to Work Check is beneficial for employees too as it stipulates that all minimum wage, working conditions and fair treatment are applicable to them. For more comprehensive onformation, contact the expert Peninsula team. The information in the above article has been compiled on the basis of general information current at the time of publication. Please note that the contents of this article and website and any information provided by our Fair Work Help Line do not constitute legal advice and are not intended to be a substitute for legal or other professional advice and should not be relied upon as such. Your specific circumstances or changes in circumstances after publication may affect the completeness or accuracy of this information. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have. To the maximum extent permitted by law, we disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, currency and reliability of the information on this website, and to seek professional advice where necessary. Nothing contained on this website is to be interpreted as a recommendation to use any product, process or formulation or any information on this website. For clarity, Peninsula does not recommend any material, products or services of any third parties.

Guide

How to Write an Employment Contract: Step-by-step Guide

What is a Contract of Employment? An employment contract is a written or verbal agreement between an employer and the employee. It sets out enforceable terms and conditions that govern the employment relationship. Although the employment agreement does not have to be in writing, ideally it will be. An employee contract must provide for at least the same minimum terms and conditions and wages set by the National Employment Standards (NES) contained in the Fair Work Act 2009 or the relevant award, enterprise or other registered agreement. Both the employer and employee must agree to any changes to the employment contract. Types of Employment Contracts Each type of engagement has different benefits and consequences, but it is preferrable that Employment agreements take written form. How you engage workers will depend on your business needs. You should also consider industry standards for the role and how different types of employment contracts may affect your business financially. Below are the most common types of engaging workers: Full-time contracts: Ongoing employment, typically 38 hours per week with full paid leave entitlements. Part-time contracts: Ongoing employment, less than 38 hours per week with pro-rata entitlements. Casual contracts: No guaranteed hours, paid hourly loading instead of leave, flexible termination. Fixed-term contracts: Employment for a specified period or project, with permanent entitlements. Independent contractors: Self-employed workers engaged for specific tasks, not employees. For a full breakdown of each employment contract type, including the specific legal obligations, entitlements, and risks for each, read our complete guide: Types of Employment Contracts in Australia. Step‑by‑Step: How to Write an Employment Contract Drafting an employment contract means clearly documenting the terms of a role so both parties understand their obligations from day one. Whether it’s for a new hire, a promotion or a change in duties, the contract should set out the key conditions of employment, reflect any award or NES requirements, and protect the business. The steps below outline the essential elements employers need to include when preparing a compliant and accurate contract. Identify the Parties to the Contract The contract must clearly state who the agreement is between. This includes the employer’s full legal entity name, ABN and registered address, along with the employee’s full legal name. Accurately identifying both parties ensures the contract is enforceable and correctly reflects who is responsible for the employment relationship. Define the Role and Responsibilities Clearly outline the position the employee is being engaged to perform. This includes the job title, a summary of key duties, reporting lines and any core expectations attached to the role. The description should be specific enough to set clear boundaries but flexible enough to allow reasonable changes in duties as the business needs evolve. Set Out Employment Status and Work Hours The contract should specify the employee’s employment status and the hours they are engaged to work. This includes whether the role is full‑time, part‑time or casual, the ordinary hours of work, any agreed rostering arrangements and the location where work will be performed. Clearly outlining these details ensures the contract aligns with NES entitlements and any applicable modern award and helps avoid disputes about expected hours or availability. Include Compensation and Benefits Set out how the employee will be paid and what entitlements apply to the role. This includes the base rate of pay, any loadings, allowances, bonuses, commission structures or other agreed benefits. The contract should also specify the pay cycle, the method of payment and whether superannuation is paid in addition to or included within the stated rate. Outline Leave Entitlements (NES Minimums) Confirm that the employee will receive at least the minimum leave entitlements under the NES, such as annual leave, personal/carer’s leave and parental leave. You can also note any additional leave the business provides, but the contract doesn’t need to restate every entitlement in full. Add Key Employment Terms Set out the core conditions that apply to the role, such as probation periods, workplace policies, the primary work location and any flexibility or variation clauses. These terms help define how the employment relationship will operate day‑to‑day and give the business the ability to manage changes where reasonable. Include Confidentiality and IP Clauses The contract should include clauses that protect the business’s confidential information and confirm that any work created by the employee in the course of their duties remains the employer’s property. These terms help safeguard sensitive information and ensure the business retains ownership of intellectual property developed during employment. Add Termination and Notice Requirements Set out how the employment relationship can be ended and what notice periods apply. This includes the required notice under the NES or any applicable award, whether payment in lieu of notice may be used, and any circumstances where summary dismissal may occur. Review for Award and NES Compliance Before finalising the contract, check that every clause aligns with the minimum standards set by the NES and any applicable modern award. This includes confirming pay rates, classifications, hours, leave, allowances and notice periods meet or exceed the legal minimums. A final compliance check reduces the risk of underpayments and ensures the contract reflects the correct legal framework for the role. What Does an Employment Contract Include? (Requirements & Checklist) An employment contract is the most effective way to codify the terms and conditions of the employment relationship. It should outline fundamental aspects of the employment relationship including employment status, particularly if the employee is engaged as a part-time or casual basis, remuneration and obligations. Setting out the conditions of employment in writing is likely to reduce the risk of misunderstanding or confusion. When drafting a letter offering employment together with an employment contract it is useful to have them professionally reviewed to ensure that the terms are sufficiently clear. Doing so will also mitigate the risk of inadvertently incorporating unlawful terms. Although every employment contract is unique and needs to reflect the specific employment relationship between the employer and the employee, there are specific conditions of employment that should be included in an employment agreement, regardless of your company size or industry. You should include the following terms and conditions in your employment contracts: Name and personal details of the employer and the employee Commencement date of employment and probation period (if a permanent employee) Clause referring to employer policies and procedures Clauses referring to essential requirements of the role e.g. Licences, clearances, registrations Type of employment (i.e. full-time, part-time or casual) Place of work and hours of operation of the business Remuneration clause – setting out the method of payment e.g. salary, wage, or piece-rate) and what is included or paid separately e.g. superannuation, loadings, overtime, bonuses, benefits and allowances. Commission is usually set out in a separate scheme. Leave entitlements – the NES provides compulsory minimum standards for various types of leave e.g. annual leave, personal leave, long service leave Clauses protecting employer property and information – e.g. company vehicle, intellectual property Confidentiality agreement making clear what employer information should be kept confidential and setting out the possible consequences of a breach Non-disparagement clause preventing the employee from any action which can reflect negatively on the company Amount of notice required to be given by the employer and employee to end the employment relationship (there are minimum notice periods under the Fair Work Act) Termination conditions including Redundancy Clauses regarding Assignment, Jurisdiction, Severability and Variation of Terms Also consider provisions to deal with potential changes in the employee’s role or their scope of duties (i.e. will the same contract still apply if the employee has to change locations, roles or duties?) and depending on the employee’s position, perhaps clauses preventing them from setting up a similar business close to their former employer for a period of time and/or stealing their clients, though these clauses can be hard to enforce. Termination of an Employment Contract An employment contract can be terminated by either the employee (ie through a resignation) or the employer. Regardless of what triggered the termination, the correct procedure must be followed to ensure the process is fair and carried out in accordance with the workplace procedures. Depending on the circumstances, if an employee is dismissed or resigns, they may be entitled to be paid notice, and must be given their final payment, which includes any entitlements owed to them e.g. accrued but untaken annual leave. Make sure you clearly outline the terms relating to ending employment in your employment contract and employee handbook. For more information on Employment Contracts call us for free initial advice on 1300 761 935. Please note this guide is intended to provide general information only and should not be substituted for the advice of a trained employment relations professional. Peninsula accepts no responsibility for employment contracts that are made based on the information provided. If you are unsure about what to include in an employment contract, Peninsula recommends you seek out professional guidance.

Guide

Redundancy Process In Australia: Step By Step Guide

What Is Redundancy? A redundancy occurs when an employer decides that an employee’s job is no longer required due to changes in the operational needs of the business. Under the Fair Work Act, a redundancy is only considered genuine when the role itself disappears, the employer has consulted the employee as required by any applicable award or agreement, and all reasonable redeployment options have been explored. Redundancies typically arise from changes such as new technology, reduced demand, restructuring, automation, or the need to improve efficiency and reduce business costs. In these situations, employers may need to follow a formal redundancy process to ensure the decision is lawful and compliant. A redundancy is not genuine if the role still exists, if consultation obligations are ignored, or if the employer fails to consider suitable redeployment opportunities within the business or associated entities. How the Redundancy Process Works in Australia The redundancy process in Australia requires employers to follow a formal, Fair Work‑aligned sequence before ending employment. This includes identifying a genuine redundancy, consulting with the employee under any applicable award or agreement, exploring reasonable redeployment options, and issuing the correct documentation such as meeting invitations, outcome letters, notice of termination, and final pay details. Employers must ensure each step is lawful, transparent, and compliant with the Fair Work Act and modern award consultation requirements. Redundancy Process Step‑by‑Step (Employer Guide) The redundancy process involves a series of Fair Work‑aligned steps employers must follow before ending employment. The guide below walks you through each stage, from identifying a genuine redundancy to consultation, redeployment, and final pay. Step 1: Identify Genuine Redundancy Confirm the role is genuinely no longer required due to operational changes such as restructuring, reduced demand, or new technology. A redundancy is genuine when the role disappears, not when the employer replaces the person or rehires into the same position. Employers should document the business reasons (financials, restructure plans, organisational charts) to show the decision is based on operational need. Step 2: At‑risk notification Inform the employee that their role is “at risk” and consultation will begin. This typically occurs on Day 1, with written confirmation sent the same day or within 1-2 business days to formally record the discussion. Step 3: First consultation meeting Explain the proposed changes, why the role may be redundant, and invite initial feedback. The employee may bring a support person (colleague, union rep, or support worker), and employers must genuinely consider any suggestions to avoid redundancy. Step 4: Written invitation to formal meeting Provide a formal written invitation to the second consultation meeting outlining the proposed changes, potential impacts, and the employee’s right to a support person. This ensures transparency and compliance with award or agreement consultation requirements. Step 5: Second consultation meeting (24+ hours later) Hold the second meeting at least 24 hours after the invitation so the employee has reasonable time to prepare. This timing reflects Fair Work’s requirement to give employees a genuine opportunity to consider the proposal and present alternatives. If you’re unsure, a Peninsula dedicated HR Consultant can attend and support you throughout the meeting. Step 6: Explore redeployment options Assess whether any suitable alternative roles exist within the business or associated entities. Document all roles considered and offer any roles the employee could perform with minimal or reasonable retraining. If no suitable roles exist, or the employee refuses a suitable role, the redundancy may still proceed. If the employee refuses a suitable redeployment option, the redundancy can still proceed, and the employee remains entitled to redundancy pay. Step 7: Final consultation meeting Meet with the employee to deliver the preliminary outcome after considering all feedback and redeployment options. If redundancy is confirmed, explain the next steps including notice, entitlements, and when the outcome letter will be issued. Step 8: Outcome letter Issue the formal redundancy outcome letter within 1–2 business days of the final consultation meeting. The letter confirms the decision, outlines the reasons, summarises consultation, and provides the employee’s final day of employment. Step 9: Notice period + final pay Provide notice in line with the NES, award, or agreement, or pay the employee in lieu of notice. Final pay must be provided within 7 days of termination and include outstanding wages, accrued leave, redundancy pay (if applicable), and any other entitlements. Redundancy Consultation Timeline Stage Employer Action Typical timing Position at risk notification Employee told job is at risk Day 1 First consultation meeting Discuss proposed changes Day 1 Written invitation Formal invite to a second meeting Day 1 Second consultation meeting Employee gives feedback 24+ hours after Day 1 Redeployment assessment Employer checks alternative roles Day 2–5 Final consultation meeting Preliminary outcome delivered Day 3–7 Outcome letter Formal redundancy confirmation Same day Notice period NES or award-based Varies Redeployment Options (Employer Obligations) Employers must explore whether the employee could reasonably perform another role before confirming redundancy. This includes checking available positions across the business and any associated entities and documenting the assessment. What counts as “reasonable” redeployment A role is reasonable if the employee can perform it with their existing skills or with minimal retraining, and if the location or travel requirements are practical. Evidence employers should keep Keep records of all roles reviewed, why each role was or wasn’t suitable, and any discussions with the employee. This shows the employer genuinely explored alternatives before confirming redundancy. Employers should record how skill‑matching was assessed, any retraining considered, and why each role was or wasn’t suitable. Lower‑paid or alternative roles Employers should offer any role the employee could reasonably perform, even if it’s lower‑paid or outside their usual duties. If the employee refuses a suitable role, the redundancy can still proceed. (Aligns with redundancy redeployment, reasonable redeployment redundancy.) A redeployment option can still be reasonable even if it is lower‑paid, has different hours, or sits at a different classification level. Redundancy Outcome Documentation Checklist Employers must keep clear, written records throughout the redundancy process to demonstrate compliance with the Fair Work Act and any applicable award. This documentation supports transparency, protects the business if the decision is challenged, and ensures all steps are properly recorded. At-risk letter: A short written confirmation that the employee’s role is “at risk” and consultation has begun. It records the initial discussion and sets the foundation for the formal process. Meeting invitations: Formal written invitations outlining the purpose of the meeting, proposed changes, and the employee’s right to bring a support person. Meeting summaries: Brief written notes summarising discussions, feedback, and agreed actions to demonstrate genuine consultation. Redeployment evidence: Documentation showing which roles were reviewed, why each role was or wasn’t suitable, and any discussions with the employee. Outcome letter: A formal letter confirming the redundancy decision, reasons, and final day of employment. Notice of termination: Written notice outlining the employee’s notice period under the NES, award, or agreement. Final pay breakdown: A summary of all entitlements owed, including wages, accrued leave, redundancy pay, and any additional payments. Notice Period & Final Pay Employers must provide the correct notice and final pay when redundancy is confirmed. These entitlements are set by the National Employment Standards (NES), any applicable award, and the employee’s length of service. NES minimum notice: The NES sets minimum notice periods ranging from 1 to 4 weeks depending on the employee’s length of service. Extra week for employees over 45: Employees aged 45+ with at least 2 years of service receive an additional week of notice under the NES. Redundancy pay: Redundancy pay ranges from 4 to 16 weeks based on continuous service, unless the employer is a small business (fewer than 15 employees). Final pay timing (7‑day rule): Final pay must be provided within 7 days of termination and include wages, accrued leave, redundancy pay, and any other entitlements. This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

Guide

What is Entitlement to Work?

There are thousands of foreign nationals living in Australia. Many arrive for studies and choose to stay on while some arrive with the purpose of migrating permanently. In most of these cases, the individual will need to find employment. These individuals will need to understand their legal right to work when seeking employment. This work eligibility meaning depends entirely on their specific visa type, duration, and conditions. As an employer or a business owner, any employee you recruit must have the right and entitlement to work. The right to work is directly tied to the compliance documents they provide, acting as essential right to work evidence. Remember, as a business owner, you are liable if you knowingly employ an illegal worker, knowing they are not an Australian or New Zealand citizen and are working without a visa, or in breach of their visa conditions. Before we review the required documents, let’s go through the general eligibility to work in australia across different groups. Eligibility and working rights in Australia Australian citizens Australian citizens have no restrictions placed on them working in Australia. However, a citizen may have their working rights restricted due to other factors, e.g. criminal history. New Zealand citizens New Zealand citizens do not need to apply for a visa to work in Australia but will usually receive a temporary one when they arrive that allows them to visit, study, stay and work in Australia. Some restrictions apply. Permanent residents Like Australian citizens, permanent residents have no restrictions placed on them working in Australia. A permanent resident, again like Australian citizens, may have their working rights restricted due to other factors, e.g. criminal history. Non-citizens with a valid visa Whether or not a prospective or current employee can work in Australia will depend on the conditions of the visa they hold. Further, their visa may restrict the type and hours per week of work they can undertake. There are many different visas in Australia that provide a person with a right to work. Peninsula recommends you speak to a specialist migration lawyer or agent to find out more about immigration legislation. It is your duty and obligation as an employer to ensure your employees are eligible to work in Australia. For instance, you can use the Australian government department of home affairs website which offers a Visa Entitlement Verification Online (VEVO) service to check the status of a current or prospective employee’s visa, which will tell you if they are allowed to work and any working conditions that apply. You need to make sure the employee has a valid working visa the entire time they work for you, so check it regularly, especially if their circumstances change. Tracking your right to work document requirements The following items establish undeniable proof of right to work in australia during the onboarding process: Australian birth certificate. Australian citizenship certificate. Australian or New Zealand passport. Evidence of permanent residence (ie. overseas passport with VEVO check). Certificate of Status for New Zealand Citizens in Australia and photo identification. Valid visa with permission to work (not all visas allow people to work). Obtain certified copies of any original, acceptable documents or have the original documents certified by someone authorised, like a Justice of the Peace (JP). These should always be in the employee's file and be updated if needed or if their circumstances change. Secondary right to work documents Australia prompts If the employee provides acceptable documentation but it is not an Australian government-issued form of photo identification, you can ask the employee to provide the following Australian-issued supporting documentation as proof of identity: Driver’s license. Medicare card. Enrolment to vote in Australian state or federal election. Tax File Number (TFN). References from previous employers and employment agencies. Tenancy agreements or home ownership details. Tertiary qualifications and trade certificate. Change of name certificates. These documents alone do not allow a person to legally work in Australia. They must only serve as supporting documentation along with any of the documents mentioned in the Proof of Right to Work section. Otherwise, they will still be considered an illegal worker in Australia. Right to work checks Executing a rigorous right to work check australia wide confirms the vital question: am i legally authorised to work in Australia for this specific enterprise? The check is a very crucial part of employment as an employer can face infringements or civil penalties if they allow an individual to work without the necessary entitlements. Ignorance of the employee’s legal status is not an excuse for employers. A Right to Work Check is beneficial for employees too as it stipulates that all minimum wage, working conditions and fair treatment are applicable to them. For more comprehensive onformation, contact the expert Peninsula team. The information in the above article has been compiled on the basis of general information current at the time of publication. Please note that the contents of this article and website and any information provided by our Fair Work Help Line do not constitute legal advice and are not intended to be a substitute for legal or other professional advice and should not be relied upon as such. Your specific circumstances or changes in circumstances after publication may affect the completeness or accuracy of this information. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have. To the maximum extent permitted by law, we disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, currency and reliability of the information on this website, and to seek professional advice where necessary. Nothing contained on this website is to be interpreted as a recommendation to use any product, process or formulation or any information on this website. For clarity, Peninsula does not recommend any material, products or services of any third parties.

Guide

How to Write an Employment Contract: Step-by-step Guide

What is a Contract of Employment? An employment contract is a written or verbal agreement between an employer and the employee. It sets out enforceable terms and conditions that govern the employment relationship. Although the employment agreement does not have to be in writing, ideally it will be. An employee contract must provide for at least the same minimum terms and conditions and wages set by the National Employment Standards (NES) contained in the Fair Work Act 2009 or the relevant award, enterprise or other registered agreement. Both the employer and employee must agree to any changes to the employment contract. Types of Employment Contracts Each type of engagement has different benefits and consequences, but it is preferrable that Employment agreements take written form. How you engage workers will depend on your business needs. You should also consider industry standards for the role and how different types of employment contracts may affect your business financially. Below are the most common types of engaging workers: Full-time contracts: Ongoing employment, typically 38 hours per week with full paid leave entitlements. Part-time contracts: Ongoing employment, less than 38 hours per week with pro-rata entitlements. Casual contracts: No guaranteed hours, paid hourly loading instead of leave, flexible termination. Fixed-term contracts: Employment for a specified period or project, with permanent entitlements. Independent contractors: Self-employed workers engaged for specific tasks, not employees. For a full breakdown of each employment contract type, including the specific legal obligations, entitlements, and risks for each, read our complete guide: Types of Employment Contracts in Australia. Step‑by‑Step: How to Write an Employment Contract Drafting an employment contract means clearly documenting the terms of a role so both parties understand their obligations from day one. Whether it’s for a new hire, a promotion or a change in duties, the contract should set out the key conditions of employment, reflect any award or NES requirements, and protect the business. The steps below outline the essential elements employers need to include when preparing a compliant and accurate contract. Identify the Parties to the Contract The contract must clearly state who the agreement is between. This includes the employer’s full legal entity name, ABN and registered address, along with the employee’s full legal name. Accurately identifying both parties ensures the contract is enforceable and correctly reflects who is responsible for the employment relationship. Define the Role and Responsibilities Clearly outline the position the employee is being engaged to perform. This includes the job title, a summary of key duties, reporting lines and any core expectations attached to the role. The description should be specific enough to set clear boundaries but flexible enough to allow reasonable changes in duties as the business needs evolve. Set Out Employment Status and Work Hours The contract should specify the employee’s employment status and the hours they are engaged to work. This includes whether the role is full‑time, part‑time or casual, the ordinary hours of work, any agreed rostering arrangements and the location where work will be performed. Clearly outlining these details ensures the contract aligns with NES entitlements and any applicable modern award and helps avoid disputes about expected hours or availability. Include Compensation and Benefits Set out how the employee will be paid and what entitlements apply to the role. This includes the base rate of pay, any loadings, allowances, bonuses, commission structures or other agreed benefits. The contract should also specify the pay cycle, the method of payment and whether superannuation is paid in addition to or included within the stated rate. Outline Leave Entitlements (NES Minimums) Confirm that the employee will receive at least the minimum leave entitlements under the NES, such as annual leave, personal/carer’s leave and parental leave. You can also note any additional leave the business provides, but the contract doesn’t need to restate every entitlement in full. Add Key Employment Terms Set out the core conditions that apply to the role, such as probation periods, workplace policies, the primary work location and any flexibility or variation clauses. These terms help define how the employment relationship will operate day‑to‑day and give the business the ability to manage changes where reasonable. Include Confidentiality and IP Clauses The contract should include clauses that protect the business’s confidential information and confirm that any work created by the employee in the course of their duties remains the employer’s property. These terms help safeguard sensitive information and ensure the business retains ownership of intellectual property developed during employment. Add Termination and Notice Requirements Set out how the employment relationship can be ended and what notice periods apply. This includes the required notice under the NES or any applicable award, whether payment in lieu of notice may be used, and any circumstances where summary dismissal may occur. Review for Award and NES Compliance Before finalising the contract, check that every clause aligns with the minimum standards set by the NES and any applicable modern award. This includes confirming pay rates, classifications, hours, leave, allowances and notice periods meet or exceed the legal minimums. A final compliance check reduces the risk of underpayments and ensures the contract reflects the correct legal framework for the role. What Does an Employment Contract Include? (Requirements & Checklist) An employment contract is the most effective way to codify the terms and conditions of the employment relationship. It should outline fundamental aspects of the employment relationship including employment status, particularly if the employee is engaged as a part-time or casual basis, remuneration and obligations. Setting out the conditions of employment in writing is likely to reduce the risk of misunderstanding or confusion. When drafting a letter offering employment together with an employment contract it is useful to have them professionally reviewed to ensure that the terms are sufficiently clear. Doing so will also mitigate the risk of inadvertently incorporating unlawful terms. Although every employment contract is unique and needs to reflect the specific employment relationship between the employer and the employee, there are specific conditions of employment that should be included in an employment agreement, regardless of your company size or industry. You should include the following terms and conditions in your employment contracts: Name and personal details of the employer and the employee Commencement date of employment and probation period (if a permanent employee) Clause referring to employer policies and procedures Clauses referring to essential requirements of the role e.g. Licences, clearances, registrations Type of employment (i.e. full-time, part-time or casual) Place of work and hours of operation of the business Remuneration clause – setting out the method of payment e.g. salary, wage, or piece-rate) and what is included or paid separately e.g. superannuation, loadings, overtime, bonuses, benefits and allowances. Commission is usually set out in a separate scheme. Leave entitlements – the NES provides compulsory minimum standards for various types of leave e.g. annual leave, personal leave, long service leave Clauses protecting employer property and information – e.g. company vehicle, intellectual property Confidentiality agreement making clear what employer information should be kept confidential and setting out the possible consequences of a breach Non-disparagement clause preventing the employee from any action which can reflect negatively on the company Amount of notice required to be given by the employer and employee to end the employment relationship (there are minimum notice periods under the Fair Work Act) Termination conditions including Redundancy Clauses regarding Assignment, Jurisdiction, Severability and Variation of Terms Also consider provisions to deal with potential changes in the employee’s role or their scope of duties (i.e. will the same contract still apply if the employee has to change locations, roles or duties?) and depending on the employee’s position, perhaps clauses preventing them from setting up a similar business close to their former employer for a period of time and/or stealing their clients, though these clauses can be hard to enforce. Termination of an Employment Contract An employment contract can be terminated by either the employee (ie through a resignation) or the employer. Regardless of what triggered the termination, the correct procedure must be followed to ensure the process is fair and carried out in accordance with the workplace procedures. Depending on the circumstances, if an employee is dismissed or resigns, they may be entitled to be paid notice, and must be given their final payment, which includes any entitlements owed to them e.g. accrued but untaken annual leave. Make sure you clearly outline the terms relating to ending employment in your employment contract and employee handbook. For more information on Employment Contracts call us for free initial advice on 1300 761 935. Please note this guide is intended to provide general information only and should not be substituted for the advice of a trained employment relations professional. Peninsula accepts no responsibility for employment contracts that are made based on the information provided. If you are unsure about what to include in an employment contract, Peninsula recommends you seek out professional guidance.