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Questions and Answers
What is typically required for the termination of an employment contract?
What is typically required for the termination of an employment contract?
What are express terms in an employment contract?
What are express terms in an employment contract?
Which is a characteristic of a probationary period in employment?
Which is a characteristic of a probationary period in employment?
What does a restraint of trade clause typically prevent?
What does a restraint of trade clause typically prevent?
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If an employment contract does not specify a notice period, what may the court imply?
If an employment contract does not specify a notice period, what may the court imply?
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How can employment contracts be varied?
How can employment contracts be varied?
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What does it mean if your employment contract includes 'additional reasonable hours'?
What does it mean if your employment contract includes 'additional reasonable hours'?
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Which of the following best describes implied terms in employment contracts?
Which of the following best describes implied terms in employment contracts?
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What is a primary function of notice periods in employment contracts?
What is a primary function of notice periods in employment contracts?
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What is the primary requirement for the enforceability of a restraint of trade clause?
What is the primary requirement for the enforceability of a restraint of trade clause?
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What is the primary purpose of a restraint of trade clause in an employment contract?
What is the primary purpose of a restraint of trade clause in an employment contract?
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Which of the following statements best describes how an employment contract may be varied?
Which of the following statements best describes how an employment contract may be varied?
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What typically happens at the end of a fixed-term employment contract?
What typically happens at the end of a fixed-term employment contract?
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In which scenario might an employer enforce the termination of an employment contract more easily during a probationary period?
In which scenario might an employer enforce the termination of an employment contract more easily during a probationary period?
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What does the term 'reasonable notice' imply in an employment contract?
What does the term 'reasonable notice' imply in an employment contract?
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Which of the following is considered an express term in an employment contract?
Which of the following is considered an express term in an employment contract?
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If an employment contract states that the salary includes payment for additional reasonable hours, what does this imply?
If an employment contract states that the salary includes payment for additional reasonable hours, what does this imply?
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Under what condition might an employer change roles or responsibilities unilaterally?
Under what condition might an employer change roles or responsibilities unilaterally?
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What does it mean if the employment is subject to a probationary period?
What does it mean if the employment is subject to a probationary period?
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When might a fixed-term employment contract typically terminate?
When might a fixed-term employment contract typically terminate?
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Study Notes
Employment Contracts
- An agreement outlining the terms and conditions of work between an employer and employee.
- Can be written, verbal, or a combination of both.
Express and Implied Terms
- Express Terms: Specific conditions agreed upon by both parties, explicitly stated.
- Implied Terms: Conditions not explicitly stated but included by law or common practice, like acting in good faith or providing reasonable notice for termination.
Contract Variation
- Can be changed by mutual agreement between employer and employee.
- Employers may make unilateral changes if allowed by the contract, like changes in roles or responsibilities.
Termination of Employment Contracts
- Fixed Term: Contract ends after a set period or upon completion of a specific task.
- Notice: Termination usually requires notice, unless serious misconduct occurs.
- Reasonable Notice: If no specific notice period is given, courts may imply a reasonable notice period based on factors such as position, salary, and length of service.
Restraint of Trade Clauses
- Prevents former employees from competing unfairly with their previous employer after leaving.
- Examples: Not working for a competitor in a certain area, not sharing confidential information, and not poaching clients or staff.
- Must be reasonable and protect the employer's legitimate business interests to be enforceable.
Reasonable Notice
- Courts may imply a reasonable notice period when a contract doesn't specify one, considering seniority, length of service, and salary.
Probationary Periods
- A trial period at the start of employment where the employer assesses the employee's suitability for the role.
- During this period, the employer can end the contract more easily if the employee is not a good fit.
Termination Circumstances
- Fixed Term Expiration: Contract ends upon completion of the set period or task.
- Notice: Either party can terminate with notice as outlined in the contract.
- Serious Misconduct: Employer can immediately terminate if serious misconduct occurs.
- Abandonment: Employer can terminate if the employee leaves without communication or reason.
Employment Contract Basics
- An employment contract is a legally binding agreement outlining terms and conditions of employment between an employer and employee
- It can be written, verbal, or a combination of both
- Express terms are explicitly agreed upon by both parties, while implied terms are not explicitly stated but are included by law or common practice
Modifying Employment Contracts
- Employment contracts can be modified by mutual agreement
- Employers can sometimes make unilateral changes (e.g., changes in roles or responsibilities) if their contract permits
Employment Contract Termination
- Fixed-term contracts end after a predetermined period or completion of a specific task
- Notice is usually required for termination, unless serious misconduct occurs
- Reasonable notice may be implied if no specific notice period is included in the contract, based on factors such as seniority, length of service, and salary
Restraint of Trade Clauses
- These clauses aim to prevent former employees from competing unfairly with their former employers after leaving
- Examples include restrictions on working for competitors in a specific geographical area or time frame, sharing confidential information, or poaching clients or staff
- Enforceability depends on whether the clause is reasonable and protects legitimate business interests of the employer
Additional Information
- Reasonable Notice: Courts may imply a reasonable notice period if the contract doesn’t specify one, considering factors such as length of service and salary
- Salary and Additional Hours: If a contract states a salary includes "additional reasonable hours," those hours are already factored into the salary and won't warrant extra pay
- Probationary Periods: This trial period allows the employer to assess the employee's suitability for the role and terminate the contract more easily during this time
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Termination Grounds: Employment can be terminated by:
- Expiration of a fixed-term contract or task completion
- Notice from either party
- Serious misconduct (immediate termination)
- Abandonment (departure without communication or reason)
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Description
Explore the fundamental aspects of employment contracts, including express and implied terms, contract variations, and termination processes. This quiz will help you understand the agreements that define the relationship between employers and employees.
