Employment agreement guide

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Wages/Salary/Allowances

7.1 Types of Pay
Including information of this nature in an employment agreement is compulsory, and each of the following are in general use, sometimes in combination. In establishing levels of payment all employees must be paid at least the minimum wage - regardless of the manner of establishing payment.

Employees are also entitled to a least time and a half for working on a public holiday, regardless of which of the following clauses are used.

Annual Salary

The Employee's salary shall be $[insert figure] per annum, which shall be paid [insert pay period:daily:weekly:fortnightly:twice a month:monthly:quarterly:annually] on [insert day on which payment will be made] [insert payment method:into a bank account nominated by the Employee:by cheque:in cash].

Hourly Rate

The Employee shall be paid according to an hourly rate which shall be $[insert rate as number] per hour. The Employee's pay shall be paid [insert pay period:daily:weekly:fortnightly:twice a month:monthly:quarterly:annually] on [insert day on which payment will be made] [insert payment method:into a bank account nominated by the Employee:by cheque:in cash].

Wages Paid in accordance with a performance pay process/structure

The parties agree that the Employee's salary shall be determined in accordance with the following scale [insert details of the scale/structure], the Employee shall commence employment at [insert level on scale] and the Employee's progression through that scale shall be dependent upon [insert basis for progression]. The Employee's pay shall be paid [insert pay period:daily:weekly:fortnightly:twice a month:monthly:quarterly:annually] on [insert day on which payment will be made] [insert payment method:into a bank account nominated by the Employee:by cheque:in cash].

Commission

The Employee shall be paid on a Commission basis, as follows [insert detail of commission]. The Employee's pay shall be paid [insert pay period:daily:weekly:fortnightly:twice a month:monthly:quarterly:annually] on [insert day on which payment will be made] [insert payment method:into a bank account nominated by the Employee:by cheque:in cash].

Piece Work Payment Rate

The Employee shall be paid on a piece work basis, which shall depend on the number of [insert description of units of work] completed by the Employee. The piece rate per completed unit of work shall be $[insert rate]. The Employee's pay shall be paid [insert pay period:daily:weekly:fortnightly:twice a month:monthly:quarterly:annually] on [insert day on which payment will be made] [insert payment method:into a bank account nominated by the Employee:by cheque:in cash].

Variable Piece Work Payment Rate

The Employee shall be paid on a piece work basis, which shall depend on the number of [insert description of units of work] completed by the Employee. The piece rate per unit of work shall be $[insert rate]. The unit of work of the piece rate may be varied by agreement in advance between the Employer and the Employee depending on the circumstances, such as [insert relevant circumstances]. The Employee's pay shall be paid [insert pay period:daily:weekly:fortnightly:twice a month:monthly:quarterly:annually] on [insert day on which payment will be made] [insert payment method:into a bank account nominated by the Employee:by cheque:in cash].
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7.2 Commission
The following clause is voluntary, and may not apply to your place of work.

Commission

The Employee shall be entitled to receive Commission in addition to their base salary or hourly rate of [insert amount] on the following basis [insert detail of commission plan]. The Employee's pay shall be paid [insert pay period] on [insert day on which payment will be made] [insert payment method:into a bank account nominated by the Employee:by cheque:in cash].
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7.3 Bonuses
The following clause is voluntary, and may not apply to your place of work.

Bonus for achieving objectives

The Employee shall be eligible to receive a bonus in [insert period] provided the Employee achieves in the reasonable opinion of the Employer the objectives agreed between the Employer and the Employee at the beginning of that period.

Bonus at the Employer's Discretion

The parties agree that the Employee may, at the Employer's sole discretion, be paid a bonus at the end of [insert period or event].
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7.4 Service Payment
The following clause is voluntary, but where employees incur costs on the employer's behalf, and with the employer's knowledge, these costs should be reimbursed.

Service Payment

The Employee shall be entitled to receive an increase in their salary/wages upon the achievement of [insert years] years continuous service with the Employer. This increase shall be as follows, and will be in addition to any agreed increases allocated under any salary review process:

[insert details of service pay scale]
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7.5 Skills Payment
The following clause is voluntary, but where employees incur costs on the employer's behalf, and with the employer's knowledge, these costs should be reimbursed.

Payments Recognising Qualifications or Skills Acquired on the Job

The Employee shall be entitled to receive the following payments, upon achievement of the following qualifications/skills:

[insert details of payments, qualifications and/or skills]
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7.6 Review
The following clause is voluntary, and may not apply to your place of work.

Review

The Employer agrees to review the Employee's salary/wages on the 12 month anniversary of this employment agreement and every 12 month anniversary thereafter. The parties agree that the Employee shall not have any necessary entitlement to an increase, but, the Employer agrees to conduct this review in good faith and to consult with the Employee during the review.
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7.7 Allowance (1)
There are a range of allowances that may be relevant to different employment relationships. Examples of allowances that may be relevant are: Tools; Clothing; Uniform; Meals; Travel; etc.

Where an allowance is made to recognise an employee for working on a particular day of the week (say Sunday), or a public holiday, this is more appropriately described as a penal rate and
  • penal rates for working on particular days of the week should be dealt with in 7.10 below
  • penal rates for working on a public holiday should be dealt with in 8.4 below.

Allowance Clause (1)

The Employee shall be paid a [insert name] allowance of [insert amount] per [insert circumstances], which shall be paid to the Employee on a [insert payment period] basis.
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7.8 Allowance (2)
There are a range of allowances that may be relevant to different employment relationships. Examples of allowances that may be relevant are: Tools; Clothing; Uniform; Meals; Travel; etc.

Where an allowance is made to recognise an employee for working on a particular day of the week (say Sunday), or a public holiday, this is more appropriately described as a penal rate and
  • penal rates for working on particular days of the week should be dealt with in 7.10 below
  • penal rates for working on a public holiday should be dealt with in 8.4 below.

Allowance Clause (2)

The Employee shall be paid a [insert name] allowance of [insert amount] per [insert circumstances], which shall be paid to the Employee on a [insert payment period] basis.
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7.9 Allowance (3)
There are a range of allowances that may be relevant to different employment relationships. Examples of allowances that may be relevant are: Tools; Clothing; Uniform; Meals; Travel; etc.

Where an allowance is made to recognise an employee for working on a particular day of the week (say Sunday), or a public holiday, this is more appropriately described as a penal rate and
  • penal rates for working on particular days of the week should be dealt with in 7.10 below
  • penal rates for working on a public holiday should be dealt with in 8.4 below.

Allowance Clause (3)

The Employee shall be paid a [insert name] allowance of [insert amount] per [insert circumstances], which shall be paid to the Employee on a [insert payment period] basis.
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7.10 Penal Rates
The following clause is voluntary, and may not apply to your place of work.

If you want to include a penal rate in your agreement to recognize an employee for working on a particular day (say a Sunday) use this penal rates clause. Do not, however, use this clause for penal rates on public holidays. Penal rates on public holidays should be dealt with in 8.4 below.

Penal Rates

The parties agree that the Employee shall be entitled to penal rates for working on [insert situations]. Where penal rates are payable, they shall be paid at the following rate: [insert rate of penal payment].
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7.11 Overtime
The following clause is voluntary, and may not apply to your place of work.

Overtime

The parties agree that where the Employee works requested overtime, the Employee shall be entitled to payment for each hour of overtime at the following rate: [insert rate].
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7.12 Reimbursement of Expenses
The following clause is voluntary, and may not apply to your place of work.

Reimbursement of Expenses

The Employee shall be entitled to reimbursement by the Employer of all expenses reasonably and properly incurred by the Employee in the performance of their duties, provided the Employee produces appropriate receipts to the Employer when requesting reimbursement.
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7.13 Reimbursement of Travel Expenses
The following clause is voluntary, and may not apply to your place of work.

Reimbursement of Travel and Accommodation Expenses

The Employee may be required to travel from time to time as part of their duties. The Employer shall reimburse the Employee for their reasonable work related travel and accommodation costs upon production of appropriate receipts.
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