Employment Contract Sample for Full-Time Non-Award Employees: Key Terms Explained

Hiring a full-time employee who isn’t covered by a modern award gives you flexibility, but it also puts more onus on you to document the working relationship clearly.

If you get the contract right at the start, you reduce the risk of disputes about hours, pay, duties, confidentiality, and post-employment restrictions later on.

In this guide, we unpack what “full-time non-award” means in Australia, the essential clauses your Employment Contract should include, and practical tips to roll it out confidently in your business.

We’ve also included plain-English sample clause snippets to help you understand how key terms can be framed in a professional agreement.

What Is A Full-Time Non-Award Employee In Australia?

In Australia, many employees are covered by a modern award, which sets minimum terms (like minimum pay rates, overtime, and allowances) for certain industries and occupations.

Full-time non-award employees are not covered by a modern award or an enterprise agreement. Their minimum entitlements instead come from the National Employment Standards (NES) and the terms you agree in the contract.

Being “non-award” doesn’t mean “no rules.” You still need to meet NES minimums on things like maximum weekly hours, leave entitlements, public holidays and notice of termination.

Because there’s no award safety net for things like overtime or penalty rates, you should be explicit in the contract about remuneration, hours, and how additional hours are treated (for example, by stating the salary is intended to compensate for reasonable additional hours, where lawful).

If you prefer a tailored document that meets Australian legal requirements, consider putting a professionally drafted Employment Contract in place before your new team member starts.

Key Terms To Include In Your Employment Contract

Every business is different, but these clauses commonly appear in a robust full-time, non-award Employment Contract in Australia.

Position, Duties And Reporting

Define the job title, core responsibilities and who the employee reports to. Allow for reasonable changes as your business evolves.

Location And Work Model

Specify the usual workplace, travel expectations, and any hybrid or remote work arrangements. Include flexibility to change location within reason.

Start Date And Probation

Set a start date and a reasonable probation period (for example, six months). Explain that performance will be assessed, and that either party can end employment on shorter notice during probation.

Hours Of Work And Breaks

State ordinary hours (e.g. 38 hours per week) and the spread of hours across the week. If you require reasonable additional hours, say so and define what “reasonable” means in your context.

Remuneration And Benefits

Set out the base salary, when it’s paid (e.g. fortnightly), and any allowances or benefits (e.g. phone, car, bonus eligibility). Clarify whether the salary is inclusive of reasonable additional hours.

Superannuation

Confirm superannuation contributions at the legislated rate, the default fund, and any employee choice arrangements.

Performance And Reviews

Outline how performance will be measured and how often reviews occur. Link performance standards to position duties and company policies.

Leave Entitlements

Confirm NES minimums for annual leave, personal/carer’s leave, compassionate leave, family and domestic violence leave and public holidays. Note any additional employer benefits (e.g. paid study or volunteer leave).

Overtime And Time Off

For non-award employees on salary, it’s common to state that the salary compensates for reasonable additional hours. If you provide time off in lieu (TOIL), explain how it accrues and is taken.

Expenses And Reimbursements

Explain what expenses are reimbursable, approval processes and documentary evidence required (e.g. itemised receipts).

Policies And Procedures

Incorporate your workplace policies by reference (e.g. code of conduct, WHS, IT and social media). Make clear that policies can change and are not contractual, but employees must comply with them.

If you’re building out your internal framework, a practical option is to implement a concise Employee Privacy Handbook and a set of core Workplace Policies that align with your contract.

Confidentiality And IP Ownership

Protect your sensitive information by including strict confidentiality obligations that survive termination. Ensure intellectual property created in the course of employment is owned by your business from day one.

Where senior hires bring existing materials or collaborate with third parties, it can be prudent to have a supporting Non-Disclosure Agreement or standalone IP Assignment in place alongside the Employment Contract.

Conflict Of Interest And Secondary Employment

Require employees to disclose conflicts and obtain written consent for any side work that could interfere with their duties or pose a competitive risk.

Restraint Of Trade

Post-employment restraints (non-compete, non-solicit, non-poach) can protect your client relationships and confidential information. These clauses must be reasonable in scope, duration and geography to be enforceable under Australian law.

If this is important to your business model, it’s wise to get tailored Restraint of Trade Advice to improve the prospects of your restraint holding up if challenged.

Company Property And Return Of Materials

List company property (laptops, access cards, files) and require return on request and on termination. Include a right to set‑off against final pay for unreturned property where lawful.

Data Security And Privacy

State clear obligations regarding data handling, passwords, device security and acceptable use. Reference your privacy and information security policies.

Termination And Notice

Cover termination by either party with notice, serious misconduct (summary dismissal) and termination during probation. Make sure notice periods meet or exceed the NES.

If your business occasionally needs to end employment immediately, you may include the option to make a payment in lieu of notice instead of requiring the employee to work through the notice period.

Garden Leave

For senior roles, include a “garden leave” option allowing you to direct the employee not to attend work or to perform alternative duties during notice, while remaining employed and paid.

Redundancy

Explain that redundancy will be managed in line with the NES and company policies, including consultation and severance if applicable. State how redeployment will be considered.

Post-Employment Obligations

Reinforce ongoing confidentiality, return of property, non-disparagement and restraint obligations after employment ends.

Dispute Resolution

Include a simple internal escalation and good faith discussions process. This can help resolve issues early before they escalate.

Governing Law And General Clauses

Wrap up with governing law/jurisdiction (e.g. the state or territory where the role is based), whole agreement, variation, severability and electronic execution clauses.

Sample Clause Snippets (Plain English)

The following sample wording is for illustration only. Your business may need different terms depending on the role, seniority and risk profile.

1) Duties And Flexibility

“You will perform the duties of and any other duties reasonably required having regard to your skills and experience. We may vary your duties and reporting lines from time to time to meet operational needs.”

2) Hours And Reasonable Additional Hours

“Your ordinary hours are 38 hours per week, generally worked Monday to Friday between 8.30am and 5.30pm with an unpaid meal break. You may be required to work reasonable additional hours to perform your duties. Your salary is intended to compensate you for all such reasonable additional hours.”

3) Confidentiality

“You must not, during or after your employment, use or disclose any Confidential Information except in the proper performance of your duties or as required by law. Confidential Information includes our client lists, pricing, business strategies, financial information, software, systems and know-how.”

4) Intellectual Property

“All Intellectual Property you create, develop or contribute to in the course of your employment (and for the purpose of our business) immediately vests in us. You assign to us all rights, title and interest in such Intellectual Property and agree to sign any documents reasonably required to give effect to this clause.”

5) Restraint (Non-Solicit)

“For 6 months after your employment ends, you must not, within Australia, solicit or attempt to solicit business from any client or prospective client with whom you had material dealings in the 12 months prior to termination.”

6) Termination And Payment In Lieu

“Either party may terminate this agreement by giving the other party 4 weeks’ written notice (or such longer period required by the NES). We may, at our discretion, make a payment in lieu of all or part of the notice period.”

Tip: If you are including a restraint, consider a “cascading” approach (e.g. 12/9/6/3 months; national/state/regional) so a court can read down an excessive period or area and enforce what is reasonable.

Common Mistakes To Avoid With Non-Award Contracts

Even experienced employers can trip on these issues. Here’s how to steer clear.

Assuming Salary Automatically Covers Every Extra Hour

Without an award to set boundaries, it’s safer to expressly state that salary compensates for reasonable additional hours and to manage workloads to keep those hours truly reasonable.

Vague Role And Performance Expectations

Ambiguity creates disputes. Be clear about responsibilities, decision-making authority and the standards expected in the role, and back this up with regular reviews.

Unenforceable Restraints

Overly broad restraints (for example, long periods or nationwide scope without justification) may be struck out. Keep restraints targeted and proportionate to your legitimate interests, or seek tailored restraint advice.

Weak Confidentiality And IP Protection

Make confidentiality and IP clauses comprehensive and ensure they survive termination. For complex IP or senior hires, consider a separate IP Assignment or NDA to reinforce protection.

Policies Not Aligned With The Contract

Contracts and policies should work together. If your policies are out of date or contradict the contract, update them before onboarding. A practical first step is rolling out a core set of Workplace Policies consistent with your contract language.

No Clear Exit Process

Build in a straightforward termination framework (notice, garden leave option, payment in lieu, property return, confidentiality reminders) so offboarding is professional and low risk. Having an Employee Termination Documents Suite ready can save time when you need it most.

How To Implement And Maintain Your Contracts

Great contracts only help if they’re introduced and managed well. Here’s a simple, practical approach.

1) Tailor The Agreement To The Role

Start with a professionally drafted template and tailor key areas: duties, reporting, location, hours, salary, benefits, restraint, and IP. Check that the notice period and leave references meet the NES.

2) Align Your Policies

Ensure your code of conduct, privacy, WHS, leave, grievance, performance, IT and remote work policies align with the contract. For privacy practices inside your business, a practical document is an Employee Privacy Handbook that explains how staff data is collected and used.

3) Present And Explain Before Signing

Give candidates time to read the contract and ask questions. Be transparent about expectations (e.g. reasonable additional hours, any travel, and performance standards). Use electronic signing to streamline onboarding.

4) Confirm The Onboarding Checklist

• Signed contract returned before the start date
• Policy acknowledgements recorded
• Position description and KPIs shared
• Payroll, tax forms and superannuation details collected
• IT, security and confidentiality briefing completed

5) Manage Changes Properly

Roles evolve. If changes are material (e.g. location changes, pay adjustments, altered reporting lines), confirm them in writing-in a variation letter or updated contract-signed by both parties.

6) Review Annually

Schedule an annual review to confirm salary remains competitive, restraints are still appropriate, and policies remain current. Update documents as needed.

7) Offboarding With Care

When employment ends, use a consistent checklist: calculate notice, consider garden leave or a payment in lieu of notice, recover property, disable access, and remind the employee of their ongoing confidentiality and restraint obligations.

Frequently Asked Questions

Do Non-Award Employees Still Get Leave And Public Holidays?

Yes. The National Employment Standards guarantee minimum entitlements such as annual leave, personal/carer’s leave and public holidays, regardless of award coverage.

Can I Pay A Salary “All-In” To Cover Overtime?

For non-award employees, it’s common to state that the salary compensates for reasonable additional hours. You should still manage workloads so additional hours are genuinely reasonable and lawful.

Are Restraints Enforceable?

They can be, if they’re reasonable and protect legitimate business interests (like client relationships and confidential information). Keep them proportionate in time, geography and scope, or get tailored restraint advice.

Do I Need Policies If The Contract Is Strong?

Yes-policies guide day-to-day conduct, safety and compliance. They should complement your contract and be acknowledged by staff. Start with a core Workplace Policy suite that fits your business.

What About IP Created After Hours?

Work-product created “in the course of employment” and for your business should be owned by you, but grey areas can arise. Use clear IP ownership wording in the contract and, where useful, a supporting IP Assignment.

Key Takeaways

• “Full-time non-award” means the employee is not covered by a modern award, so your contract must clearly set out pay, hours, leave, and how additional hours are treated while meeting the NES.
• Core clauses include duties, hours, pay and super, leave, confidentiality and IP, conflicts and secondary employment, restraints, policies, and termination (including notice, garden leave, and payment in lieu).
• Use plain, specific wording so expectations are clear; keep restraints reasonable and targeted to protect legitimate interests.
• Back up your contract with aligned policies, security and privacy practices, and consistent onboarding/offboarding processes.
• Review contracts and policies annually to keep them current as roles and laws evolve.
• For higher-risk roles or complex protections, support the contract with focused documents like an NDA, IP Assignment and a practical termination pack.

If you’d like a lawyer-drafted Employment Contract for a full-time non-award employee, or help tailoring restraints, policies or offboarding documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.