Can you create a new employment contract for existing employees?
In Australia, employment contracts are generally subject to both common law principles and statutory requirements. If you wish to make changes to an existing employment contract, it's important to consider the following.
Agreement
Changes to an employment contract should ideally be made with the agreement of both parties. If the employee agrees to the changes, it can be done through a simple written agreement.
Fair Work Act 2009
The Fair Work Act is a key piece of legislation governing employment in Australia. It sets out certain minimum employment conditions and provides a framework for employment contracts. Any changes made to the contract must comply with the provisions of the Fair Work Act.
Unfair dismissal laws
In Australia, employees may be protected by unfair dismissal laws. If changes to the employment contract involve significant alterations to terms and conditions of employment, it could potentially be considered a dismissal, and unfair dismissal laws may apply.
Good faith & fair dealing
There is an implied duty of good faith and fair dealing in employment relationships in Australia. Employers should act reasonably and not make changes to the employment contract that would be considered unfair or unreasonable.
It's highly recommended to seek legal advice to ensure that any changes to an employment contract comply with relevant laws and regulations. Additionally, consider consulting with the affected employee to maintain a positive and cooperative working relationship.
Want to recruit top talent?
Now that you better understand whether you can create a new employment contract for existing employees, you may be interested in learning more about 11 Recruitment's permanent recruitment services.
11 Recruitment is the leading perm and temp recruitment agency for white-collar staff. We source high achievers for jobs in Perth and throughout Australia.
At 11, we typically get involved in the recruitment process when a client is either seeking a high achiever to elevate their business, recruiting for a role that is hard to fill, or having difficulty sourcing or attracting suitable candidates.
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