Employment contract FAQ

What is a template employment contract?

A template employment contract is an employment contract that you can reuse for different employees of similar seniority who are covered by the same modern award. 

Lawlux’s template employment contracts also include optional clauses, which you can select when chatting with Lixo AI. 

Examples of optional clauses include if the employee is a new employee or an existing employee, and how the employee is remunerated (ie by using a common law set off, a guarantee of annual earnings or in accordance with the minimum modern award entitlements).

Is it an ongoing permanent, maximum term full time or part time template employment contract?

When you chat with Lixo AI, you will be able to select if the template employment contract will be an ongoing or maximum term template employment contract. 

Detail on the difference between an ongoing, maximum and casual employment contract is here. 

You will also select if you want the template employment contract to include optional clauses for part time and full time employees, or to otherwise be drafted on only a full or part time basis.

Do I need a new employment contract for each employee?

No, the template employment contract can be reused for all similar employees.

That said, each template employment contract should only be used for employees of similar seniority who are covered by the same modern award.  

Can I use the one template employment contract for all employees?

Generally, each template employment contract should only be used for employees of similar seniority who are covered by the same modern award.  

The reasons are that:

1. Employees at different levels of seniority have different expectations and obligations, and 
2. Employees covered by different modern awards require employment contracts that comply with the applicable modern award. 

For example, in a mid-sized technology company that does not have an enterprise agreement, the employer will likley use separate template employment contracts for:

1. The CEO and members of the executive leadership team.  Those template contracts would (among other things):
   • Have longer notice periods.
   • Impose more onerous post-employment restraints.
   • Include director or office holder resignation obligations.
   • Protect the employer in relation to the ‘golden handshake’ provisions in the Corporations Act.
2. Management employees not covered by any modern award or enterprise agreement. 
3. Developers covered by the Professional Employees Award on the basis they require a computer science degree recognised by the Australian Computer Society to perform any of their duties. 
4. Reception and administration employees covered by the Clerks – Private Sector Award (including People and Culture employees).

How do I know if a modern award covers an employee?

Although it is important that employers know if each employee is covered by a modern award, assessing modern award coverage is unfortunately complicated and uncertain.

Lawlux provides legal advice on modern award coverage.  To obtain modern award coverage advice, get started with Lixo AI to complete what’s called a ‘conflict check’ to ensure Lawlux can work for you or your company.  Select ‘Start legal work’ then ‘Legal advice’. 

Alternatively, the Fair Work Ombudsman has an online award coverage tool that some employers find helpful. 

How does the subscription tier work?

For a fixed monthly upfront price, the subscription tier provides clients with a template employment contract and time with a lawyer each month.

Many clients choose the subscription tier because the initial cost for a template employment contract is less than the Standard and Premium tiers, and they can seek assistance from an employment lawyer as questions arise. 

The other benefit of the subscription tier is that any subsequent written legal advice is provided at a reduced fee. 

How long does the process take?

The process usually takes a week, depending on when you schedule your appointment with one of Lawlux’s lawyers. 

Detail on the process is here. 

What is credit card pre-authorisation?

Pre-authorisation is a temporary hold that Lawlux places on your business’ credit card.  

Pre-authorisation permits Lawlux to reserve the cost of your business’ legal work for payment at a later date and to comply with legal regulations.