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Agency and Temporary Staff (on-hire staff)

Employment Contracts

27 June 2025 (Last updated 3 Dec 2025)

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When you employ temporary staff to work for your business it can open up a world of possibilities yet also present a few risks. As an employer, it is your responsibility to meet your workplace obligations and provide a safe working environment for both your temporary and permanent staff.

Under the Fair Work Act 2009 temporary staff are entitled to the same minimum employment rights as permanent staff, as well as the same work, health, and safety laws as well.

Furthermore, they are covered by the National Employment Standards (NES) and the entitlements of their specific Modern Award. Although, if the recruitment agency supplying the temporary staff has their own enterprise agreement, this may replace some or all provisions of the award in your business.

Approaching employment agencies

Choosing the right type of recruiting agency is key to reaching a positive outcome. Some agencies cater to a wide range of industries and job types. While other agencies focus on a niche field or industry, where they only offer registered employee who possesses a specialist set of skills, knowledge and experience. Generally speaking, specialist agencies charge higher fees and rates, but offer access to the specific pool of employees you seek.

Why should you approach employment agencies? That depends on your circumstances.

The most common reasons why other employers do it is so they can:

  • Quickly fill a role that has suddenly become vacant
  • Meet supply and demand during a special event (i.e. seasonal event, holiday, or unexpected surge in new projects)
  • Carry out a task that requires specialist skills (which no one else in the company currently has)

Regardless of why you approach an agency, you should be clear as to describe the kind of candidate you are looking for. Key details to mention include your preferred role, job title, specialist skills and experience, and a proposed commencement date of employment. With this information, the agency will draw from their pool of registered employees and present to you only the most qualified candidates for the job.

Employment agency contracts

When you hire temporary staff through an agency, there will be two separate agreements in place: one between you (the employer) and the agency, and another between the agency and temporary staff.

The only agreement you need to be concerned about is the one between you and the agency. This agreement lays out a number of unique terms and conditions including the responsibilities of both parties. While the terms of an agreement vary considerably, the most likely provisions you will come across include:

  • Calculation of fees: Some agencies operate on a fixed-fee basis while other agencies operate on a commission basis. The agreement should clearly state the fee structure and describe how the total fee amount is calculated.
  • Recruitment services: This includes a detailed description of all the services to be provided by the recruitment agency. Depending on the agreement the list of services may include screening candidates, performing interviews, calling referees, and providing training.
  • Replacement guarantee: In some cases, a recruitment agency will offer some kind of replacement guarantee. This means if the first candidate either leaves early or is unsuitable for the position, the agency guarantees to find a replacement within a certain period of time.
  • Payroll services: The wage that the employment agency will pay the on-hire employee. In most cases, the employment agency is responsible for superannuation contributions and payroll tax. However, if you (the client) decide to create a separate employment contract agreement between you and the temporary staff, then you are responsible for payroll tax.

Benefits of temporary employment agencies

There are many advantages to hiring temporary employees. While cost-cutting is one of them, the real calling card lies in the flexibility of the arrangement itself, as it can be modified to meet the specific needs of any business – regardless of size, type or industry.

Other key advantages to temp work and similar arrangements are:

  • Reduce downtime due to a vacant position
  • Reduce the burden and workload on permanent employees during busy periods
  • Take on a higher workload and successfully meet more project deadlines
  • Carry out specialist tasks that no permanent employee in the business can do themselves

Training temporary staff

Should your temporary staff already be trained? On a purely technical level, yes. However, they are unfamiliar with how your business does things and, likewise, your permanent employees are unfamiliar with your temporary staff too. If both parties are not on the same page it can raise a number of health and safety red flags.

That is why you need to prepare an employee training plan. Be sure to communicate your workplace policies and procedures to your new temporary staff. And let all permanent employees know ahead of time that a new employee will soon join the company to do temporary work.

If necessary, provide extra onsite training and support until the new employee is comfortable in their role.

Workplace culture and diversity

Workplace culture defines the character and personality of your business. It encompasses a number of attributes that make your business unique such as values, beliefs, traditions, behaviour, and attitudes.

For this reason, it is a good idea to define your workplace culture before you hire a temporary employee. This way, you are more likely to find a candidate who not only has the necessary technical skills and knowledge, but who also gets along with your other employees and the environment itself.

Keep an eye out for any instances of workplace bullying or discrimination brought against any temporary staff. Be sure you follow the correct management procedure in a fair and consistent manner.

Dismissal

For most temporary agreements, if you (the employer) are unsatisfied with the behaviour, performance, or conduct of an on-hire employee, you must give reasonable notice before you can legally dismiss them. Before taking action, it is prudent to check any agreements that are in place and your rights and obligations under those agreements.

Always closely review the terms and conditions of a temporary workplace agreement before you sign and before taking action under the agreement. Clarify any confusing terms or conditions so that you know exactly what the agreement means for you.

Access complete HR and WHS support

From hiring temporary staff to staff management, Peninsula can support you at every step of the way. Our innovative HR software makes staff management a breeze for employers and business owners. And a 24/7 advice line provides relevant and industry specific advice that ensures employers get what they need. Contact to learn how we can help you.

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.

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Employment Contracts

Enterprise Agreements

An Enterprise Agreement is negotiated between employers, employees and bargaining representatives to establish a fair working wage and conditions of employment. In this comprehensive guide for employers, we explain what an enterprise agreement is, things included in an enterprise agreement, and how the EBA has evolved over the years. Please note that all the information below is general in nature and if you need further information, consult an employment relations professional. Is there a difference between Enterprise Bargaining Agreements and Enterprise Agreements? Enterprise Bargaining Agreement (EBA) was an old term prior to the Fair Work Commission (FWC) amending it to Enterprise Agreement (EA). Prior to EBAs were Collective Agreements which were in place before the Fair Work Act 2009. Changes to EBAs The Secure Jobs Better Pay Act, Closing Loopholes Act and Closing Loopholes No.2 Act changed how employers and employees bargain and make agreements. What is an enterprise agreement? An Enterprise Agreement sets out the minimum terms of employment between one or more employers and their employees or a group of their employees. The Agreement may replace any applicable modern awards to act as the base terms and conditions of employment for those employees who are covered by the EA; or it may incorporate certain terms from the relevant parent Award. An Enterprise Agreement (EA) gives employers and employees the freedom to bargain for better wages, greater flexibility and working conditions to suit their individual needs above and beyond a Modern Award or the National Employment Standards (NES). The Fair Work Act 2009 sets out strict rules and guidelines for all parties to follow to ensure the process is fair. This includes guidelines for negotiating, mandatory terms to include, and the requirements to meet the Fair Work Commission’s (FWC) approval standards. 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Multi-Enterprise Agreement Made between one or more employers who may not have a single interest and employees to be covered by the agreement. Greenfields Agreement  Made in relation to a new enterprise before any employees are hired. This agreement can be a single-enterprise or multi-enterprise agreement and is between employers and employee associations or other bargaining representatives (usually a union). Employee-like Collective Agreement They are made between a digital labour platform operator and an organisation that can represent employee-like workers. Road Transport Collective Agreements They are made between a road transport business and an organisation that can represent regulated road transport contractors. Single enterprise agreements Most registered employment agreements are single enterprise agreements. An employer may make single enterprise agreements with its employees. An agreement covers employees when they: Are employees at the time the agreement is made. Start work for the employer after the agreement is made. In some cases, 2 or more employers may make a single enterprise agreement. They must be related employers, which means they are one of the following: A joint venture or a common enterprise. Related body corporate entities. Employers that carry on similar business activities under the same franchise and are franchisees of the same franchisor and/or related bodies corporate of the same franchisor. Multi-enterprise agreements Two or more employers may make a multi-enterprise agreement. The agreement is only with the people who are: Employees at the time the agreement is made AND Employees who will be covered by the agreement. Employers must follow a clear process to make a multi-enterprise agreement. From 27 February 2024, an employer may transition from a supported bargaining agreement or a single interest employer agreement that has not yet passed its nominal expiry date, to a single enterprise agreement. Things to include in an enterprise agreement An Enterprise Agreement covers a range of matters from rates of pay to employment conditions and dispute resolution procedures. The Fair Work Act 2009 requires an Enterprise Agreement to contain the following terms: Coverage term that explains who the agreement covers. Flexibility term that allows an employer and an employee to agree to vary some specific terms of the agreement with employees to suit through an individual flexibility agreement. Consultation term that requires the employer to provide notice and consult with affected employees regarding any major workplace changes. Dispute resolution term that allows the FWC or another independent party to settled disputes concerning matters arising under the agreement. Nominal expiry date of the agreement no longer than four years from the agreement’s approval date. In addition to the mandatory terms, an EA can only contain ‘permitted matters’, which includes terms relating to rates of pay, penalty rates, overtime, allowances, standard hours, annual leave, personal/carer’s leave and deductions from wages. There are certain terms that cannot be included in an EA or EBA, specifically: Discriminatory terms, or terms that otherwise breach the general protections of the Act; Objectionable terms, for example a term that requires or permits breach of the general protections; Terms that are inconsistent with the unfair dismissal provisions of the Act. Terms that are inconsistent with the industrial action provisions of the Act. Terms that are inconsistent with the right of entry provisions of the Act. Terms that are below standards outlined by the NES or Modern Award. What is the difference between an enterprise agreement and a modern award? Like awards, enterprises agreements set out minimum entitlements and employment conditions for your business. An enterprise agreement is negotiated within one or more specific businesses, rather than determined by the Fair Work Commission for an entire industry or occupation. But it still needs Fair Work Commission approval before it can come into effect. Generally, when you have an EA the award doesn’t apply, though some agreements do defer to the award or incorporate award provisions. Enterprise agreements can be tailored to meet the needs of a business or group of businesses and can include provisions regarding various matters, such as rates of pay, employment conditions and dispute resolution processes. The agreement cannot include anything unlawful, for example anything discriminatory. The minimum pay in the agreement still can’t be less than the base rate of pay for the classification under the award, and the National Employment Standards (NES) enshrined in the Fair Work Act will also continue to apply. The employees also need to be “better off overall” than they would have been under the award for the Fair Work Commission to approve the agreement. Enterprise bargaining process Employers, employees and their bargaining representatives are involved in the process of bargaining for a proposed enterprise agreement in good faith. Once an employer decides to initiate the bargaining for an EA, they are required to take all reasonable steps to notify any existing employees who will be covered by the EA of their right to be represented throughout the negotiations. Once the notice of employee representational rights has been issued, negotiations can commence. There are four steps to the bargaining process: Notice of Representational Rights. Commencement of Good Faith Bargaining. Voting and Access Period to the finalised EA. Approval by the Fair Work Commission. Grow your business with Peninsula Peninsula has worked with thousands of businesses in Australia providing expert advice on employment relations and workplace health and safety. We offer access to resources, tools, documents, and software to all our clients. Contact our team to find out how we can help you. 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.

Employment Contracts

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 in Australia. These individuals will need to have the right to work in Australia. The right to work will depend on the visa and its duration and other supporting 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 related to the documents employees can provide, thus acting as evidence of entitlement. Remember that as business owners, 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 documents required, let’s go through the eligibility of different people in Australia. Eligibility and the right to work 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 in Australia. Peninsula recommends you speak to a 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 that work for you, so check it regularly, especially if their circumstances change. Types of documents considered as proof Each of the following are considered acceptable documentation that allows a person to work in Australia: 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 on the employee file and be updated if needed or if their circumstances change. Are there any other supporting documentation employers can accept? 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 A Right to Work Check is as the name suggests, a check to ensure the employee in question is legally authorised to do their respective job. 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. 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.

Employment Contracts

Employment Contracts

An employment contract is a written 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. What to Include in An Employment Contract 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. Types of Employment Contracts Each type of engagement has different benefits and consequences, but it is preferrable that agreements take written form. How to engage workers in a manner that is right for your business will depend on your specific business needs. You should also consider the industry standards of each role and how the arrangement will affect your business financially.  Below are the most common types of engaging workers: Full-Time Employment Contracts Full-time employees have ongoing employment and generally work 38 ordinary hours per week or an average of 38 ordinary hours a week. This may vary depending upon whether the relevant employee is covered by an industrial instrument. They are entitled to paid leave and are required to be given notice of termination. Part-Time Employment Contracts Part-time employees have ongoing employment and typically work less than 38 hours a week. They usually work regular hours each week and are entitled to the same minimum employment entitlements as full-time staff. However, the part-time entitlements are on a ‘pro rata’ basis. Casual Employment Contracts Casual employees work for an employer on a demand-only basis. Unlike a permanent agreement, casual employees have no firm commitment in advance of ongoing employment and generally work on an ad hoc basis (so the work hours are irregular). Casual employees are paid for the hours they work, and they can refuse shifts. Casual employees are not entitled to paid sick or annual leave, and their employment can generally be terminated at any time without notice. To compensate, casual employment attracts an hourly loading. Fixed-Term Employment Contracts This is when an employee is hired for a specified period of time or to complete a specific task or project. Typically, the contract ends either when a project is complete or an event has passed (e.g. a peak season). Fixed-term contracts clearly outline the length of the employment period from start to end. Although this type of arrangement is often short-term, fixed-term workers still receive the same entitlements as permanent employees though notice is not required if the employment contract ends at the end of the fixed-term. Independent Contractor  Independent contractors are typically self-employed workers who contract their services out to other companies. Contractors negotiate their own fees and working arrangements and they have the freedom to work for multiple employers at once. It’s important for an employer to clearly define whether the person they hire is a permanent employee or independent contractor as there may be risks to the business if the contractor turns out to be an employee. 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 651 415. 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.

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