An employment contract is an agreement between an employer and employee that sets out terms and conditions of employment. A contract can be in writing or verbal.
Can a contract provide for less than the legal minimums?
Myth: It’s ok for businesses to pay workers below the minimum wage if they agree to it.
Minimum pay rates aren’t optional. It's unlwaful to pay less than the minimum pay rates that apply, even if there is a signed contract or agreement of a lower rate.
You can check minimum award rates with our Pay Calculator
An employment contract cannot provide for less than the legal minimum set out in:
All employees are covered by the NES, regardless of whether they’ve signed a contract. A contract can’t make employees worse off than their minimum legal entitlements.
Getting help with employment contracts
We can give advice about the legal minimums in an employment contract. You will need to contact a lawyer for advice about any other terms and conditions in the contract.
Find out where to get legal advice.
Think a mistake might have been made about the legal minimums in a contract?
Mistakes can happen. The best way to fix them usually starts with talking.
Check out our Help resolving workplace issues section for practical advice on:
- figuring out if a mistake has been made
- talking to your employer or employee about fixing it
- getting help from us if you still can't resolve it.
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