In the world of employment, there are various types of contracts that govern the relationship between employers and employees. While some may be familiar with common law employment contracts, there are also awards and enterprise agreements that play a significant role. So, what exactly is the difference between these contracts? Let’s dive deeper to understand each one of them.
Award Contracts
An award is a legal document that sets out the minimum terms and conditions of employment for a particular industry or occupation. It covers things like wages, working hours, leave entitlements, and other employment conditions. Awards are generally created by industrial tribunals or industry-specific bodies and apply to employees in that particular industry or occupation.
Enterprise Agreements
On the other hand, an enterprise agreement is a legally binding agreement made between an employer and a group of employees or their representatives. Unlike awards that apply to a whole industry, enterprise agreements only cover the employees covered by the agreement. Enterprise agreements can include terms and conditions that are above the minimum standards set by awards, providing additional benefits and improved working conditions for employees.
Common Law Employment Contracts
While awards and enterprise agreements are more collective in nature, a common law employment contract is an individual agreement between an employer and an employee. It is based on the common law principles and allows both parties to negotiate and include specific terms and conditions that suit their needs. Common law contracts are generally more flexible in terms of terms and conditions, and can include provisions that are not covered by awards or enterprise agreements.
Now that we have a basic understanding of these contracts, let’s look at some practical examples:
- Examples of Islamic marriage contracts
- Redeemable preference shares agreement
- Software development agreement sample
- Hardware evaluation agreement
Conclusion
Understanding the difference between awards, enterprise agreements, and common law employment contracts is crucial for both employers and employees. Each type of contract has its own benefits and considerations, and it’s important to determine which one applies to your specific circumstances. Whether you fall under an award, an enterprise agreement, or have a common law employment contract, knowing your rights and obligations will help foster a fair and productive working relationship.