Employment contracts are legally binding agreements between employer and employee that set out the terms and conditions of employment, including:
- role
- remuneration
- work hours
- notice periods
Company policies are operational documents that establish workplace standards, procedures, and expectations across the organisation. Both are essential, but they serve different purposes. Contracts must comply with the National Employment Standards and correctly reference the applicable modern award. Policies provide the human resources framework for managing day-to-day practices and procedures including conduct, leave, performance, and safety. A compliant HR framework requires both robust contracts and comprehensive policies and procedures in place.