Running a business in Western Australia feels different because the rules actually are different. We are the only state that still has a dual industrial relations system. This means your business might be governed by the national Fair Work system or the WA state system depending on whether you are a PTY LTD company or a sole trader. Getting the contract right is about more than staying legal. It is about setting the ground rules so everyone knows where they stand from day one. A solid contract acts as a safety net for the relationship. It ensures there are no messy surprises when things change or when someone decides to move on.
The essentials of a valid agreement
Every contract needs to cover the basics. You need to clearly state the job title, the core duties, and who the employee reports to. It is also vital to specify the type of employment. With recent shifts in how casual work is defined, being clear about whether someone is full-time, part-time, or casual is more important than ever. You should also outline the hours of work. If you expect your team to stay back during busy periods, you need to mention that reasonable additional hours are part of the deal.
Remuneration is the part everyone looks at first. Make sure you break down the base salary, any allowances, and superannuation. You also need to reference leave entitlements. While many rules come from the national system, long service leave in WA has its own specific set of regulations that often apply regardless of your business structure. Termination notice periods should also be written in stone. This avoids the awkwardness of trying to figure out a departure timeline in the heat of a resignation or a dismissal.
Protecting your hard work
Employers have a right to protect what they have built. This is where standard protective clauses come into play. Confidentiality agreements ensure that your client lists and trade secrets do not walk out the door. Intellectual property clauses are equally important. They confirm that the work your staff produces while you are paying them belongs to the business.
Restraint of trade clauses can be tricky in WA. While you can include them to stop a former employee from poaching your best clients, they must be reasonable. If a clause is too broad, a court will simply ignore it. You should also include a section that requires staff to follow your company policies and procedures. This gives you a clear path to manage performance or conduct if someone chooses to ignore the safety manual or the social media policy.
What stays out of the contract
There are certain things you simply cannot include. The most important rule is that a contract cannot offer less than the legal minimum. If an Award or the National Employment Standards says an employee gets four weeks of leave, your contract cannot say they get three. Any term that provides less than the legal floor is void and could land you in hot water with regulators.
The laws around pay secrecy have changed significantly too. Employers can no longer stop staff from discussing their wages with each other. It is a legal right now. You must also avoid any terms that could be seen as discriminatory or that breach corporate law standards regarding director duties and business conduct. Furthermore, the rules around fixed-term contracts have tightened. You generally cannot keep someone on rolling short-term contracts for more than two years without a very good reason.
Respecting the right to disconnect
One of the newest additions to the workplace landscape is the right to disconnect. This means your contracts and your workplace culture should respect that employees have a life outside of the office. Unless it is an emergency or part of a pre-arranged on-call setup, staff have the right to ignore emails and calls once they have clocked off. It is a good idea to reflect this in your expectations to help prevent burnout and keep your team happy.
Final thoughts on getting it right
Writing a contract from a random template you found online is a massive risk. These documents often miss the specific nuances of the Western Australian system. A verbal agreement is technically a contract, but it is almost impossible to prove what was said three years ago when a dispute arises. Having a written document that has been reviewed by a professional ensures that your business is protected and your staff feel secure. It is much better to invest the time now than to try and fix a broken agreement later. Taking the time to get the details right shows your team that you value their contribution and take your responsibilities seriously. It might seem like a lot of paperwork, but it is the best way to build a professional and transparent workplace.
