Employers
Offering and negotiating as an employer
You should be open to negotiating terms in the employment agreement if an employee requests changes.
Making the offer
Usually, when you offer someone a job you give them a letter offering employment, with the draft A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement.
You can download and adapt our sample letters of offer to suit your needs:
- Offering employment where there is no relevant
collective agreement in placeThe employment agreement between 1 or more unions and 1 or more employers and 2 or more employees. Also see ‘Employment agreement’.
- Offering employment where the person is a member of a
union and that union has a collective agreementAn organisation that supports and advocates for employees in the workplace. Unions bargain for collective agreements and help employees with information and advice about work-related issues.
- Offering employment where the person is not a member of a union with a collective agreement, but the individual employment agreement will be based on the collective employment agreement
- Offering employment where there is a relevant collective agreement, the person is not a member of a union that is a party to that agreement and the
individual employment agreement is not based on the collective employment agreementThe employment agreement between an employee and an employer. Also see ‘Employment agreement’.
Writing the employment agreement
When you offer a job, you must give your employee an A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement.
Collective and Individual employment agreement
Once you have created a draft employment agreement, you should:
- provide a copy to the employee and give them time to read it and get advice about it, before they start work
- discuss and consider compromising on any terms they are not happy with
- make sure they agree to the conditions before they start work.
Signing the employment agreement
You should both sign the employment agreement.
If the employee does not sign it but does not say they do not agree to it and starts working for you, the employment agreement could still apply to them, unless:
- they can show they did not agree to all or part of it, or
- some part of it is unlawful.
After they've signed
The employee’s employment agreement:
- should be kept in a safe place so you can refer to it and give the employee a copy if they ask
- can be changed by agreement between you and the employee.
Unfair bargaining
When you negotiate a new individual employment agreement or make a change to an existing one you have a duty of An underlying principle in employment law which requires employers and employees to deal with each other honestly, openly, and in a fair and timely way.
Unfair bargaining happens when:
- the employee is at a significant disadvantage
- you as an employer knew, or ought to have known, about the circumstances leading to the disadvantage.
An employee can be significantly disadvantaged if they:
- cannot understand the agreement or its implications properly because of reduced ability
- reasonably relied on incorrect advice (for example, if you told them the wrong information about the legal effect of the terms of the agreement)
- were convinced to enter into the agreement by unfair means, for example, a threat or pressure to accept
- did not have the information or opportunity to ask for further advice about the agreement.
It’s best practice to make sure the employee:
- understands the terms of the agreement
- has time to take the agreement away to read it in detail and get advice
- does not feel pressured to accept the agreement.