Employment

Employment is a formal agreement where a person, known as an employee, agrees to perform specific duties as directed by another party, the employer. In return for their work, the employee receives compensation which could be in the form of wages or a salary. This relationship can vary from full-time to part-time or casual employment, each with different expectations and obligations.

What makes an employment relationship

Employment is usually formed by a contract, written or verbal, and is shaped by laws and instruments such as the Fair Work Act, modern awards and enterprise agreements. The main types are full-time, part-time, casual and fixed term employment, and each has different entitlements to leave, notice and redundancy pay. The law looks at how the relationship works in practice. For example, a worker who has a regular pattern of shifts and is directed when and how to work is likely to be an employee, even if they have an ABN.

Read our guide to employment contracts.