Don’t Risk Your Business: Why Every Employer Needs a Solid Employment Contract

by | Jun 16, 2025 | Blog, Cairns, Gladstone, Mackay, Normanton, Townsville

30.6.25 don’t risk your business why every employer needs a solid employment contract

According to Vlasta Eriksson, CEO of Signature Staff and a recognised leader in Queensland’s recruitment industry, neglecting this important step can expose employers to serious legal and financial risks.

“Don’t leave your employment relationships to chance. A clear, comprehensive contract isn’t just paperwork—it’s protection.” – Vlasta Eriksson, CEO of Signature Staff

Why a Verbal Agreement Isn’t Enough

While Australian law doesn’t mandate written employment contracts, Vlasta explains that relying on a handshake or informal agreement is a risky approach.

“Too often, businesses come to us after a dispute has already started,” she says. “Without a written contract, employers have little legal ground to stand on—whether it’s about salary disagreements, role clarity, or confidentiality breaches.”

A strong employment contract in Queensland outlines the terms of employment and helps prevent misunderstandings before they arise. It should include not just the basics—like salary, hours, and duties—but also address key areas that can affect your business long-term.

Protecting Your Business and Confidential Information

Employees often have access to sensitive business data, trade secrets, client lists, and internal systems. Without clear confidentiality clauses, this information can easily be misused.

A properly drafted contract should:

  • Define what constitutes confidential information
  • Set clear expectations around its use
  • Provide legal remedies if that confidentiality is breached
Preventing Poaching and Competition

One of the most common challenges employers face is ex-employees soliciting clients or staff. A restraint of trade clause can help protect your business by limiting an ex-employee’s ability to work for competitors or approach your customers.

However, Vlasta cautions that these clauses must be written carefully.

“If a restraint clause is too broad or unreasonable, it can be ruled unenforceable. This is where expert guidance becomes essential.”

Intellectual Property Belongs to the Business

If employees develop products, content, systems, or ideas while on the job, a clear intellectual property clause is vital. It ensures any work created as part of their employment remains the property of the business.

Without this, former employees could legally claim ownership over business-critical assets.

More Than Just the Basics

Vlasta highlights that a comprehensive employment contract should also cover:

  • Bonus and incentive structures (discretionary or guaranteed)
  • Reimbursement of expenses and related policies
  • Company policies and how they are applied
  • Dispute resolution procedures
  • Notice periods and termination clauses
  • Jurisdiction for resolving legal matters
Why Choose Signature Staff?

At Signature Staff, helping Queensland businesses thrive is at the core of what they do. Under Vlasta Eriksson’s leadership, the company has earned a reputation for delivering tailored recruitment services, HR support, and compliance solutions.

Employers who partner with Signature Staff gain more than just quality candidates—they also receive trusted advice to ensure their operations are legally protected and future-ready.

For more information or to create a perfect employment contract, give us a call or visit our website: signaturestaff.com.au

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30.6.25 don’t risk your business why every employer needs a solid employment contract

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