When making a job offer make sure you have researched the industry standard for the position in regards to remuneration so that you have in your mind a range that can be negotiated with the successful applicant. Also be prepared for what a successful applicant may want to negotiate as part of their employment contract as I am sure they will have done their research as well. This can include things like relocation expenses, extra time off during the year, working from home, so be prepared to not only negotiate the salary but other components that may be more important to the successful applicant.
I have included the link to the 2017 Australian Salary Guide to give you an idea of what sort of information you can look at before making a job offer.
Now we look at the other side, as the successful applicant, you have just received the phone call that you got the job, now what do you do? Do you accept blindly whatever they are offering you or do you negotiate? Well essentially that will be up to you but if you want to negotiate then please watch the following video that can give you some tips on how to go about the negotiating conversation.
What is a contract of employment? According to the Australian Human Resource Institute, ‘An employment contract is a type of contract that gives rise to rights and obligations that are enforceable or recognized by law. As with any contract, the law requires certain conditions to be met before it will recognize an employment contract. This conditions are:
- There must be an offer of employment which is accepted by the prospective employee;
- Each party must provide consideration in return for the obligations undertaken by the other party (sometimes known as mutuality of obligation)
- The parties must have intended to enter into a legal relationship; and
- The agreement must be certain and complete (for example, it is difficult for the law to recognize an employment contract where an essential term such as the rate of remuneration had not been agreed)’.
There are different types of employment contracts depending on whether applicants are full time, part time, casual, fixed term or flexible. This clip shows the different types of employment contracts in Australia.
Types of Employment Contracts in Australia | 1:56 mins
As an employment contract is a legal document it is always recommended that organisations have someone review the contract with the appropriate skills to make sure that is complies with employment law. Workplace responsibilities under Fair Work Australia will be covered in week 6.
In every employment contract there will also be a probationary period, a lot of organisations put three months but just a tip from my previous experience is that for any permanent continuing positions I always put in the employment contract a probationary period of six months. The reason for this was that I found three months sometimes wasn’t long enough to evaluate whether the new employee was suitable for the position. You need to allow yourself an out if things don’t work out. I have had both experiences where someone performed extremely well in an interview and then found when they were given the position they struggled to perform the requirements of the position. Then I have had people perform really well at interviews and it also translated to them being great at the position. So give yourself some breathing space and opt for six months.
However, if you are the one receiving an employment contract as the successful applicant for a new position, this following clip provides some tips for what to look for in your employment contract before signing it.
Employment Contract | 1.10 mins
As another example, here is the table of contents from my previous employment contract
Most people jump to the Schedule page as this gives you the summary version of what your entitlements are and the responsibilities of the position.
However, as you can see there is quite a bit of information included in your employment contract because it is a legal contract between you and the organisation, so make sure you read all of it carefully before signing. Quite often the level of information in an employment contract needs to be as detailed as possible because the contract will be used to resolve any disputes between the two parties if they arise.