Over the past year, I’ve reviewed more than 50 employment and contractor agreements - all originally prepared by so-called experts. Some were drafted by lawyers. Others came from accountants. Many were supplied by industry bodies or pulled from ‘trusted’ HR platforms. Not one was truly compliant. In nearly every case, I found 10 to 20 issues - from outdated clauses to high-risk gaps that could leave the business wide open if something went wrong. It’s a blunt reality check: not all experts are created equal . Employment law moves fast, and generalist advice often misses the mark. If your contracts haven’t been reviewed recently - or were created by someone who doesn’t live and breathe workplace compliance - there’s a good chance they’re already outdated. Why SME Employment Conracts and Contractor Agreements Are So Often Wrong Small and medium business owners usually have good intentions — they want to do the right thing. But they also wear a lot of hats. Legal, HR, compliance... it’s a lot. So, they rely on: A law firm they used a few years back Their accountant (who probably shouldn’t be drafting employment contracts) Templates from industry bodies or HR software These options feel “safe” - but too often, they’re not. The problem is employment law isn’t static . It evolves constantly - and so do the risks. What was compliant two years ago may now be outdated or unlawful.. The Most Common Mistakes I see (Over and Over Again) Here’s what shows up in contract after contract: ❌ Outdated or unlawful clauses Flat hourly rates that ignore overtime, penalty rates or Award obligations. Standard clauses that haven’t been touched since before the last Fair Work overhaul. ❌ The wrong Award or classification Roles misclassified as Award-free. The same template used for casual, part-time and full-time staff. Missteps like these can lead straight to underpayment claims. ❌ Embedded policies inside contracts Leave policies, social media rules or performance management processes that should live outside the contract — making them impossible to update without reissuing the agreement. ❌ Missing or vague protections No privacy clauses for staff working in clients' homes. No expectations for behaviour around animals or in childcare settings. No provisions for travel, installations or factory-to-site staff movement. ❌ Misused contract types Fixed-term used where maximum-term is safer. Apprentices left on outdated agreements after qualification. Small oversights that become big problems later. ❌ Contractor agreements that blur the lines Contracts that look and read like employment agreements — exposing businesses to superannuation obligations, sham contracting claims and compliance headaches. Why This Should Worry You These aren’t small oversights - they’re high-risk compliance failures. And they can lead to: ⚠️ Underpayment or overpayment claims ⚠️ Entire contracts being ruled invalid ⚠️ Fines for unlawful terms ⚠️ Loss of legal protections if a claim arises ⚠️ Reputational damage and regulatory scrutiny For a small or growing business, even one mistake can spiral into a costly distraction. Prevention is always cheaper — and smarter — than damage control. What You Can Do Right Now Here are three practical steps every SME owner or manager can take today: Sense-check your contract types Are you using distinct templates for casuals, part-timers, full-timers and contractors? If you’re reusing one-size-fits-all documents, stop. Each role needs its own structure and legal footing. Pull policies out of contracts If you’ve got leave, conduct, or social media policies embedded in the employment contract — extract them. These should sit in your handbook or internal policy library so they can evolve without renegotiating contracts. Confirm Award coverage and classifications Go back and check whether each role in your business is: Covered by an Award (and if so, which one) Classified at the correct level Being paid according to the applicable minimums and entitlements If you don’t know how to do that - or aren’t confident in your current setup — that’s your sign to get help. Step 4 (If You’re Still Unsure): Get a Professional Contract Review If it’s been a while since you reviewed your employment or contractor agreements, or if you’ve had changes in staff, structure or Awards, it’s time. A professional contract review will identify hidden risks, explain where you stand, and show you what needs fixing - before it costs you money, time or reputation. You don’t need to have all the answers, you just need to know when to ask the right questions. Book a consultation with us now - we’ll help you revuew your contracts and ensure your business stays protected.
From 26 August 2025, the Right to Disconnect became law for small businesses under the Fair Work Act. That means your employees now have a legal right to switch off outside their working hours and refuse unreasonable work contact. So, what counts as "unreasonable"? Unreasonable contact is any communication outside rostered or agreed hours that isn't: Critical (e.g. emergencies or urgent safety issues), Expected as part of the role (e.g. on-call workers), Compensated (such as through an on-call allowance or reflected in salary). Even if you're just “checking in” or sending a quick after-hours email, it’s the impact on the employee - not your intent - that matters. The law doesn’t ban after-hours contact - it gives employees the right to ignore it without consequences if it’s not reasonable. The Challenge for Employers Small business owners are often hands-on and operate outside 9–5. It’s not uncommon to shoot off an email or text late at night. But under this new law, those habits could land you in hot water - especially if an employee feels pressured to respond or penalised for not doing so. This shift means boundaries matter more than ever. Without clarity around roles, hours, and expectations, the risk of misunderstandings - and legal issues - goes up fast. 3 Things You Can Do Now ✅ Update your expectations around work hours and contact Clearly outline expectations around work hours, availability, and any after-hours duties to your managers, your team and if applicable in your position descriptions. Include in contracts if someone is compensated for after hours work. ✅ Create a simple communication policy Define what “reasonable contact” looks like for your team. This sets clear expectations and protects both you and your staff. ✅ Have the conversation Start open, non-confrontational chats with your employees about when and how you communicate. It’s a great opportunity to build trust while getting compliant. Not Sure What’s Reasonable? The safest way to move forward is to get tailored advice. Book a consultation with us - we’ll help you update your contracts, build a compliant policy, and ensure your business stays on the right side of the law.
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