The common law contract of employment in Australia is a legally binding agreement between an employer and employee that outlines the terms and conditions of their working relationship. While it is not a requirement for employers to have a written contract, it is common practice in Australia to use one. In this article, we will discuss the basics of the common law contract of employment in Australia.
What is a Common Law Contract of Employment?
A common law contract of employment is a type of contract that is formed between an employer and employee. It is based on the common law of contracts, which is a body of law that has developed over time through court decisions. This type of contract is different from a statutory contract, which is created by legislation.
Key Elements of a Common Law Contract of Employment
There are several key elements that must be present in a common law contract of employment in Australia, including:
1. Offer and acceptance: The employer must make a clear offer of employment, and the employee must accept it. This can be done verbally or in writing.
2. Consideration: Both the employer and employee must receive some form of benefit in exchange for the employment relationship. In most cases, the benefit is payment for work performed.
3. Terms and conditions: The contract must outline the terms and conditions of employment, including the employee`s duties, hours of work, salary, and benefits.
4. Termination: The contract should also outline the circumstances under which the employment relationship may be terminated, such as for cause or upon notice.
Benefits of a Common Law Contract of Employment
There are several benefits to having a common law contract of employment in Australia. One of the main benefits is that it provides clarity and certainty for both the employer and employee. By outlining the terms and conditions of employment, both parties know what is expected of them and what they can expect in return.
Another benefit is that it can help to prevent disputes and misunderstandings. A well-written contract can help to avoid disagreements over issues such as pay, hours of work, or job responsibilities. In the event of a dispute, the contract can be used as evidence in court or in an arbitration proceeding.
Conclusion
In summary, a common law contract of employment in Australia is a legally binding agreement between an employer and employee. It outlines the terms and conditions of their working relationship and helps to provide clarity and certainty for both parties. While it is not a legal requirement to have a written contract, it is common practice in Australia to use one. Employers and employees should ensure that they understand the key elements of a common law contract of employment and seek legal advice if necessary.