A Full-Time Employment Agreement (Australia) is a legally binding contract between an employer and an employee engaged on a permanent, ongoing basis to work ordinary hours of up to 38 hours per week. In Australia, all employment contracts — regardless of whether they are written or verbal — operate against the backdrop of the Fair Work Act 2009 (Cth) and the National Employment Standards (NES), which establish the minimum entitlements that every national system employee is entitled to receive.

The Fair Work Act 2009 (Cth) is the primary federal legislation governing employment in Australia. It established the NES as a set of 11 non-excludable minimum entitlements, created the Fair Work Commission to set minimum wages and Modern Awards, and established unfair dismissal and general protections regimes. Most private sector employees in Australia — and employees in the Australian Capital Territory, the Northern Territory, and Victoria — are national system employees and are covered by the Fair Work Act.

A well-drafted full-time employment agreement serves several important functions. It clearly documents the terms and conditions of employment, reducing the risk of disputes. It confirms the salary or wage and ensures compliance with applicable Modern Award rates. It addresses the employer's obligations regarding superannuation, leave entitlements, and notice of termination. It protects the employer's legitimate business interests through confidentiality, intellectual property, and restraint of trade clauses.

A critical feature of Australian employment law is that the NES operates as a safety net. No employment contract — however carefully drafted — can lawfully exclude or reduce any NES entitlement. Section 55 of the Fair Work Act 2009 (Cth) makes clear that a term of an employment contract that is inconsistent with the NES has no effect to the extent of the inconsistency. This means employers must approach employment agreements not as documents that define all rights, but as documents that operate alongside the NES and any applicable Modern Award.

A written full-time employment agreement is needed whenever an employer engages a new permanent full-time employee in Australia. While Australian law does not strictly require employment contracts to be in writing, a written agreement is strongly recommended for several reasons.

First, employers are required by section 125 of the Fair Work Act 2009 (Cth) to provide every new employee with a Fair Work Information Statement (FWIS) before or as soon as possible after the employee commences employment. The FWIS sets out information about the NES, Modern Awards, agreement-making, individual flexibility arrangements, freedom of association, termination of employment, and the role of the Fair Work Commission. A written employment agreement is the natural complement to the FWIS.

Second, a written agreement prevents disputes about the terms and conditions of employment. Without a written record, disagreements about salary, hours, duties, notice periods, and other matters are difficult to resolve and can lead to costly litigation or Fair Work Commission proceedings.

Third, certain provisions — such as confidentiality obligations, intellectual property assignment, and post-employment restraints of trade — must be in writing to be enforceable. Australian courts will scrutinise restraint of trade clauses carefully and will only enforce them where they are reasonable in scope, duration, and geographic area, and where a legitimate business interest is being protected.

Fourth, for employers paying a salary that is intended to absorb Modern Award entitlements (such as overtime or penalty rates), a written agreement with an appropriate absorption or 'set-off' clause is essential to ensure the arrangement is legally valid. Without such a clause, employers risk employees claiming unpaid award entitlements in addition to their salary.

A compliant Full-Time Employment Agreement for Australia must address the following key provisions.

The parties and commencement date clause should clearly identify the employer (including ABN or ACN) and the employee by their full legal names and addresses, and specify the date employment commences. This triggers the employee's entitlements under the NES and their period of continuous service for unfair dismissal purposes.

The position, duties, and place of work clause should describe the employee's job title, reporting line, primary work location, and key responsibilities. It should also identify the applicable Modern Award (if any), as this determines minimum pay rates, penalty rates, and other Award-specific conditions.

The probation period clause (typically 3 to 6 months) should specify the duration and the notice period during probation. Employers should note that the minimum employment period for unfair dismissal protections is 6 months (or 12 months for small businesses) — employees dismissed before completing this period cannot access unfair dismissal remedies, regardless of the probation period specified in the agreement.

The hours of work clause must specify ordinary hours (maximum 38 per week for full-time employees under s62 of the Fair Work Act 2009 (Cth)) and must acknowledge the employee's right to refuse unreasonable additional hours.

The remuneration clause must state the base salary or hourly rate and confirm it meets or exceeds the applicable Modern Award minimum. The pay frequency (weekly, fortnightly, or monthly) and method of payment should also be specified.

The superannuation clause must confirm the Superannuation Guarantee rate (currently 11.5% from 1 July 2024) and the employee's right to choose their superannuation fund. The NES right to superannuation (effective 1 January 2024) means employees can now enforce superannuation obligations through the Fair Work Commission.

The leave entitlements section should set out the key NES leave entitlements: 4 weeks paid annual leave (s87), 10 days paid personal/carer's leave (s96), 2 days compassionate leave (s104), 12 months unpaid parental leave (Part 2-2 Division 5), long service leave (state legislation), and public holidays (s114). These cannot be excluded or reduced by agreement.