Candid Conversations: Employment Contracts

Employment Contracts on Farms: What Every Employer Needs to Know

Employment contracts often get treated like paperwork: sign on day one, file away, and forget.

But as Amy Carrian from ALC Collective explained in our latest Candid Conversations webinar, a good contract does far more than tick boxes.

With a background in HR and workplace health and safety, Amy works with businesses to build practical systems that work in real life, not just on paper.

Contracts set expectations, reduce confusion, and protect both employers and workers when things go sideways.

And in agriculture, where roles shift, seasonal work is common, and no two businesses are the same, getting contracts right matters more than many farms realise.

Amy joined us to discuss where contracts sit under Australian employment law, the most common mistakes, and why "set and forget" creates real risk.

Employment contracts must meet Australian workplace laws

Employment contracts can’t remove employee rights protected under the National Employment Standards or Modern Awards.

Employment contracts are only one piece of the puzzle. Underneath every contract sit:

• The National Employment Standards (NES)
• Modern Awards
• and Enterprise Agreements, where applicable.

These set the minimum legal standards for all employees in Australia.

A contract can improve conditions for a worker, but it can't reduce or remove entitlements already protected under law.

As Amy explained,

"A signed contract does not override Fair Work legislation."

This means if a contract said a full-time worker could only access annual leave after 12 months, that clause wouldn't stand.

Under the NES, annual leave accrues from day one. The same applies to:

• Minimum pay rates
• Hours of work
• Leave entitlements
• Notice periods
• and allowances and penalties.

If a contract provides less than the NES or applicable award, the legislation wins.

Getting the right award classification matters

Many agricultural businesses may be under the wrong award

Award coverage is often misunderstood in agriculture. A common assumption is that some farm businesses aren't covered by an award at all, but as Amy explained, that's often not the case.

Many agricultural businesses and support roles sit under awards, including:

• The Pastoral Award
• The Horticulture Award
• The Clerk's Private Sector Award

Getting those classifications wrong creates real compliance risk.

Job titles alone aren't enough to determine the correct award level. Two workers, both called "farm hands", could have day-to-day duties that place them under completely different classifications within the same award. That's where position descriptions matter.

Clearly documenting each worker's responsibilities helps determine:

• The correct classification
• Minimum pay rates
• Overtime obligations
• Allowances and other entitlements

Many issues start when businesses rely on assumptions or informal arrangements instead of reviewing the actual duties being performed. With seasonal work, shifting responsibilities, and mixed workforce structures common in agriculture, it's worth reviewing contracts regularly.

Casual employment rules have changed

Casual employment laws have tightened, and how casual workers are classified matters more than ever.

As Amy explained, casual employees must genuinely meet the definition of a casual employee. Labelling someone as "casual" in a contract doesn't automatically make it so.

Fair Work legislation now focuses on the actual working relationship, not just the wording on paper.

As Amy explained it as:

"What matters is the real substance of the relationship, not the label."

If a casual employee is working:

• Regular hours
• Ongoing shifts
• Predictable patterns
• or has an expectation of continuing work

They may no longer be considered a true casual. And if a worker is incorrectly classified, businesses could face:

• Backpay claims
• Unpaid leave entitlements
• Penalties
• Other compliance issues

One example discussed was using casual employment as a trial period. While it might seem simpler upfront, it creates risk if the arrangement starts to look like permanent employment. Amy suggested using properly structured probation periods within permanent employment contracts instead.

Employment contracts shouldn’t be “set and forget"

Employment contracts shouldn't be treated as set and forget. As Amy explained, businesses change and so do workplace laws.

Awards are updated regularly, legislation evolves, pay rates change, and employee responsibilities shift over time. Without regular reviews, businesses can unintentionally create compliance gaps.

A common misconception is that awards only change once a year when minimum pay rates are updated in July. In reality, award conditions and interpretations can change throughout the year. That's why regular reviews matter.

Amy recommended reviewing contracts:

• Annually
• When employee duties change
• After wage increases
• When employment types change
• When legislation or award conditions are updated

Another risk is relying on outdated templates. A contract that worked several years ago may not reflect current legislation, awards, or how the business actually operates today.

Reviewing contracts can feel like another task on an already busy list. But it's far easier and far less expensive than dealing with Fair Work disputes or underpayment claims later.

One-size-fits-all contracts don’t work on farms

There's no such thing as a one-size-fits-all employment contract in agriculture. Every farm business operates differently. Workforces, roles, rosters, housing arrangements, and seasonal demands all vary. Contracts need to reflect the actual working relationship, not just a generic template downloaded online.

As Amy put it:

"Your neighbour's contract is unlikely to apply to your business."

Another point she raised during the session:

"Googling or ChatGPT-ing your contract may not be wise."

The point wasn't that templates or online information are always wrong, but that employment law is highly dependent on business context. What works for one operation can create real risk for another.

Two businesses may appear similar on the surface, but small differences in operations or employee arrangements can lead to very different obligations under workplace laws.

Because in employment law, context matters. That's why seeking professional advice when developing or reviewing employment contracts is worth the effort.

If you’re unsure whether your current contracts reflect how your farm actually operates, it may be worth reviewing them before the next busy season.

Topics: Candid Conversations

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