As the school year begins, you may be embarking on fresh opportunities at new schools or workplaces. A key part of starting a new job is signing a contract of employment or a letter of appointment. Understanding the terms and conditions of your contract is essential to protecting your rights and entitlements.
Understanding your employment contract
A contract of employment (also called a letter of appointment) is a legally binding document that outlines the terms of your working relationship with your employer. It would normally include:
- your employer’s legal name
- your job title
- commencement date
- work location
- type of employment (for example, full-time or part-time)
- hours of work or full-time equivalent (FTE).
In most workplaces, the IEU has negotiated an enterprise agreement (EA) that applies to the workplace. These EAs include the terms and conditions for the employees at that workplace such as pay classifications and leave entitlements. If an EA applies at your workplace, then your contract will probably refer to the relevant EA. It is important that you are familiar with which EA applies in your workplace.
Employment contracts and EAs
IEU-negotiated EAs stipulate your entitlements including your pay, classification level, leave entitlements (including annual leave, personal leave, long-service leave) and the notice period required to terminate your employment.
While some employment contracts expressly state these entitlements, others may only refer to the EA or be silent.
In all cases, an employment contract cannot provide less than what is contained in the EA. If a contract includes terms that are less favourable than those in the EA, the EA prevails. Conversely, if the contract offers more favourable terms, those beneficial terms apply.
End dates in contracts and fixed-term employment
If your employment contract includes a specific end date, it means you are on a fixed-term contract.
Fixed-term employment is intended for temporary appointments. For years, the IEU has successfully negotiated EA provisions limiting the use of fixed-term contracts in schools.
As of 6 December 2023, the Fair Work Act has introduced new restrictions on fixed-term employment to enhance job security in Australia. Under the new laws:
- The total period of employment under a fixed-term contract cannot exceed two years.
- Fixed-term contracts cannot include renewal or extension clauses exceeding two years.
- A fixed-term contract may only be renewed or extended once.
- A new contract cannot be issued for the same or a substantially similar role within a two-year period.
- Employers must provide a Fixed-Term Contract Information Statement when issuing such contracts.
There are specific exceptions to these limitations. For instance, parental leave replacements, employees earning above the high-income threshold (currently $175,000) or those in specific positions subject to government funding that are unlikely to continue beyond two years may be exempt.
The rules on fixed-term employment are complex, so seek advice if you are unsure.
Seek advice
If you have concerns about your employment contract and whether it complies with the fixed-term employment rules, we encourage you to reach out to your union organiser.
Understanding your contract ensures that you are fully informed about your rights and entitlements in the workplace.