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LT033 VCE VM Literacy Unit 3

TASK 6: EMPLOYMENT CONTRACTS

Your task is to read the Medical Clinic Employment Agreement found in Gordon
Online Literacy Unit 3, and complete the following questions about the document.
You will need to use the links provided to research the answers to some questions.

CASE STUDY: ALEX

Alex has just graduated year 12 and has been offered a full-time job at a local
medical clinic in Geelong. They have not worked in this industry before and have
only had informal jobs for small business operators, so they have never received
an employment agreement before, otherwise known as a contract.
Alex is 19, with no formal qualifications in this field, so they will start in a “Support
services employee level 1” role. They are not a trainee or apprentice and are not
eligible for a supported wage.

1. Read the Employment Agreement that Alex received via email, and explain
what your thoughts are on the size and complexity of the document. Comment
on the style of language used, the tone and how information is displayed in
each topic. (3 sentence minimum)
The document is very large and detailed, with lots of legal jargon. The language
used is very formal. The tone is serious. The information is split up into headings
and subheadings so each topic is clearly separate from the rest.

2. Should Alex sign the agreement without reading it first? Explain your answer.
No, Alex needs to understand the information that is in the agreement because
they should know what they are agreeing to.

3. Alex has dyslexia and finds to agreement difficult to read. Suggest a solution
so that Alex is fully aware of all the details they are agreeing to. List at least 3
people Alex could go to for assistance.
They could ask someone else to read and explain the document to her, including
parent, careers advisor, lawyer (if they know one personally that won’t charge her
a lot of money), union representative if they are a member, or the employer. Alex
should be given an opportunity to ask questions about the agreement.

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4. Why do you think the agreement is so detailed and complex? Could it be

shorter? Explain your answer. (minimum 2 sentences).
The agreement could no be shorter because it includes all the legal information
regarding the job. The worker needs to know exactly what conditions they are
agreeing to so there is no confusion about pay or workload.
5. Read heading 5 “Contract of employment”. Is the position description
mentioned attached to this document? Explain why or why not. (2 sentences)
Position description, also called job descriptions, are usually very lengthy and state
clearly the role the person will do day to day. It would make the contract too long
to add all those details into the agreement as well as all the employment
information.
6. What if Alex’s performance doesn’t meet the job description? Do you think it is
fair to have a “probationary period”?
Probation periods are often implemented at the start of the employment
relationship. They give an employer and employee an opportunity to check
that employees are suitable for the role they've been hired to do. If Alex’s
performance is not up to the employer’s standard, and does not meet the job
description, they should be given feedback and an opportunity to improve
during the probation and before being dismissed.
7. Use the Pay calculator at fairwork.gov to calculate how much Alex should be
paid. The award used by this medical clinic is the “Health Professionals
Support Services Award 2020”. All other details you need to know are in the
case study.

P.A.C.T Pay Calculator - Find your award v0.1.113 (fairwork.gov.au)

Hourly pay rate $18.14

Overtime Monday to Saturday $27.21
(first 2 hours)
Overtime Monday to Saturday $36.28
(after 2 hours)
Public holidays $45.35
Saturday $27.21
Sunday $27.21

8. Explain what Section 9 “Minimum Engagement” means. Give an example of

when this rule needs to be enforced. (1 - 2 sentences)
They will be paid for 3 hours work even if they work for less than that. 3 hours per
day is the minimum they can be paid.
If Alex is called in because there is extra work scheduled, but when they arrive the
extra work is unexpectedly cancelled and Alex is told they are no longer required
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to work, they will still get three hours pay.

9. Does Alex get paid for their 30 minute lunch break and 10 minute coffee
break? (Minimum 1 sentence)
Alex will be paid for the coffee break but not the lunch break

10. Vocabulary
Find definitions for the following terms that are in context for employment contracts
(that is, what is the meaning of these words within Alex’s agreement?). And give
an example of how this applies to Alex.

TERM DEFINITION EXAMPLE

Accrues accumulate or receive Alex’s annual leave accrues

(payments or benefits) over
time.
Commensurate corresponding in size or
degree; in proportion.
over time
Alex starts on a level 1 pay
scale because they have no
experience in this field.

Employee a person employed for Alex is an employee in the

wages or salary, medical clinic
Employer A person or organization Alex’s employer is the
that employs people. medical clinic owners.
Pro rata proportional. Alex receives the full amount
of annual leave because they
work full time.
Cumulative increasing over time Alex’s annual leave continues
to increase over time.
Terminated bring to an end. Alex’s employment is not
going to be terminated just
yet.

11. Under the “Annual Leave” heading, explain what the sentence “This leave
accrues on a pro-rata basis and is cumulative”.
Part time employees receive a percentage of annual leave that is equivalent to the
full-time rate.
It accumulates, or continues to build up over time the longer they work there.

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12. How much sick leave does Alex get per year as a full-time employee? And
explain when they need a medical certificate for sick leave. (minimum 2
sentences)
10 days sick leave per year. A medical certificate is need when they take more
than one consecutive day off or, adjacent to a public holiday.

13. Explain what long service leave is, and how much Alex is entitled to after 15
years.
Long service leave is paid leave granted to employees who have remained
working continuously for the same business for a long period of time. Alex is
entitled to 13 weeks after 15 years.

14. Does Superannuation come out of Alex’s pay? How much super does Alex
receive and explain what happens to that money?

Alex’s employer pays 10.5% superannuation on top of Alex’s pay. That money is
put into a superannuation account that Alex can access after the age of 65. A
superannuation account usually pays interest so the money increases over time.
The money does not come out of Alex’s pay.
15. Alex has worked at the medical clinic for 6 months when they are offered a
better job in another town. How much notice should Alex give their employer
that they are leaving the business?
1 week notice

16. Before Alex announces they are leaving, the clinic owners announce they are
retiring and therefore closing the business. Explain what happens when the
employees are made redundant, and list all the entitlements they will be paid.
Employees negotiate their redundancy with the employer.
They will need to have all their entitlements up to that date paid out, including
annual leave, long service leave, and superannuation paid into their super
account.

17. Apart from terminating employment or being made redundant, explain when
this contract would become null and void (that is, no longer legally binding)?
When Alex is offered a promotion, or upskills their qualifications. Or if they die.

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MEDICAL CLINIC

Dr. Pip and Pop Dr Medica Clin

MBBS Dip. RACOG M.B.B.S.,F.R.A.C.
G.P.M.MED

EMPLOYMENT AGREEMENT

1. APPLICATION OF AGREEMENT
This employment agreement is made between the employee NAME of ADDRESS
and employer DR. Pip and Pop & DR Medica Clin of 123 Gordon Ave, Geelong
under the ‘Health Professional Support Services Award 2020’ and is binding upon
the employee and employer who are signatories to this agreement.

2. TERM OF OPERATION
This agreement shall operate on and from DATE and shall remain in force for a
period of 12 months unless both parties agree to terminate at an earlier date.

3. REVIEW OF AGREEMENT
It is agreed that the parties to this agreement, or their representatives, will meet to
review the content of this agreement at least 2 weeks before the expiry of this
agreement and may vary or reaffirm the contents at that time.

4. PLACE OF WORK
Where the employee travels directly to a business other than the employee’s usual
business address, then a travel allowance will apply only in respect to the additional
kilometres travelled. Any additional expenses are incurred in the course of travelling;
such amount shall be reimbursed by the employer. At a rate of 78cents petrol money
per kilometre.

5. CONTRACT OF EMPLOYMENT
The employee is employed as Medical Receptionist to perform the duties outlined in
the attached position description.

The employee will be engaged as specified in attached roster as agreed. Part-Time

Permanent employees shall be entitled to all the entitlements of a full time employee
on a pro-rata basis.

6. PROBATIONARY PERIOD

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Employees shall serve a probationary period of 12 weeks upon the commencement

of their employment. During this period, employment may be terminated by either
party on one day’s notice. At the end of this probationary period and subject to
satisfactory performance in accordance with the duty statement, the employment will
continue and this contract will apply with the original (pre-probationary)
commencement date.

7. RATES OF PAY

7.1 Ordinary hours

For full and part time employees, the hourly rate of pay shall be $HOURLY PAY
RATE NOT INCLUDING PENALTY RATES. This rate shall be payable for any time
worked. Any work required to be done outside the ordinary hours of work (over 76
hours per fortnight) shall be overtime. Payment for overtime shall be at the rate of
time and one half of the employee’s hourly rate for work after 10 hours and double
time after 12 hours. Saturday and Sunday shall be paid at time and one half of
ordinary hours. Overtime shall only be payable if the work is authorised by the
employer.

Wages shall be paid in accordance with the provisions contained in the Act. Wages
will rise on the first day of July with a rise equal to the rise of the consumer price
index (Melbourne rate not National rate)

8. HOURS OF WORK
The ordinary hours of work will be up to 38 hours per week, to be worked as up to 8
shifts of 10 hours per fortnight (exclusive of lunch break) Mondays to Fridays.

A roster setting out the employee’s daily ordinary working hours, commencing and
finishing times and meal intervals shall be posted. Any changes to the roster shall
be made in consultation with the employees.

9. MINIMUM ENGAGEMENT
An employee, other than a full time employee, shall be provided with at least 3 hours
work on each day worked, otherwise payment for 3 hours will be made

10. MEAL PERIOD

A meal interval of not less than 30 minutes and not more than one hour shall be
allowed each full time employee during each shift. Such meal interval shall not be
counted as time worked.

Part time and casual employees shall be granted a meal break after completing not
less than 3 hours.

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A paid 10 minute coffee break shall be taken by all employees, for every 4 hours
worked.

11. ANNUAL LEAVE

Full time employees, other than casuals, shall be entitled to four weeks paid annual
leave per year. Leave pay will be calculated on the basis of rostered hours as
included in this contract. Part time employees will be entitled to that fraction of 4
weeks commensurate with their fraction of full time work e.g. 19 hours per week is
entitled to 2 weeks a year leave. This leave accrues on a pro-rata basis and is
cumulative in accordance with the Act. Employees will be awarded a 17.5 % loading
on holiday pay, for leave actually taken.

If the employment is terminated during a period of service in any year, payment for
any pro-rate leave shall be calculated at the rate of one twelfth of ordinary earnings
for each month of continuous service in that year.

Where the employer intends to temporarily close, the employer shall give four weeks’
notice of the date of closing.

Any employee who at the date of closing is not entitled to annual leave shall be paid
a pro-rata amount calculated at the rate of one twelfth of their pay for the period
since their commencement of their employment. The next twelve month qualifying
period for annual leave shall commence on the date of closing.

12. SICK (PERSONAL) LEAVE

Employees other than casuals shall be entitled to 10 days paid sick leave each year.
More than one consecutive day off or if the day off is adjacent to a weekend or public
holiday or annual leave a Doctor’s certificate is required. This leave accrues on a
pro-rata basis and is cumulative. Sick leave will be paid on the basis of the rostered
hours for the day(s) missed.

13. COMPASSIONATE LEAVE

An employee shall upon notification to the employer be entitled to 4 days annually:
(a) On the death or serious illness within Australia of a wife, husband, de facto,
father, mother, brother, sister, child, step-child, mother-in-law, father-in-law,
grandparent, grandchild or next of kin:
(b) On the death outside of Australia of a wife, husband, mother, father, brother,
sister, child or next of kin:
(a) 3 days
(b) 1 day

Proof of such death or illness shall be furnished by the employee to the satisfaction
of the employer.

14. LEAVE WITHOUT PAY

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Such leave may be taken by mutual agreement.

15. LONG SERVICE LEAVE

Employees are entitled to leave in accordance with the Act (i.e. on the basis of 13
weeks leave after 15 years continuous service). This can be taken pro rata after 10
years.
Long service leave includes public holidays.

16. PARENTAL LEAVE

Employees, other than casuals shall be entitled to maternity, paternity or adoption
leave in accordance with the conditions as set out in the Act. In addition, such
employees shall be entitled to work part time in connection with the birth or adoption
of a child. Such leave will be subject to the conditions as contained in the Act. Any
such leave is taken without pay.

17. SUPERANNUATION
Superannuation payments will be made in accordance with Government legislation,
which is 10.5% of earnings where monthly income is above $450. The employer
shall make payments to a nominated superannuation fund on behalf of the
employee. The employee will be required to sign an authority where the fund is not
National Mutual.

18. PUBLIC HOLIDAYS

Employees shall be entitled to designated Public Holidays.

New Years’s Day, Australia Day, Labour Day, Anzac Day, Good Friday, Easter
Monday, Queen’s Birthday, Melbourne Cup Day (or substitute local holiday), Grand
Final Eve, Christmas Day and Boxing Day shall be deemed to be public holidays if
gazetted by the Victorian Government. An employee, other than a casual shall be
allowed time off without loss of pay.

Any employee required to work on any such days shall be paid at the rate of time
and one half of their normal hourly rate.

19. CONFIDENTIALITY
Employees are required to maintain strict confidentiality in respect to patients’ and
their records and any matters relating to the operations of the business. If there is a
breach of confidentiality, the employee will be subject to termination without notice.

20. SETTLEMENTS OF DISPUTES

The procedures will be those as set out in The National Employment Standard (NES)
& the Fair Work Act 2009.
As an employee of Medical Clinic you are required to observe all relevant policies
and procedures, including those relating to;
 Code of Conduct (attached)
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 Privacy (attached)
 Counselling & Disciplinary (attached)
 OHS (refer to practice manual)
 Equal Opportunity, Bullying and Harassment (attached).

21. TERMINATION OF EMPLOYMENT

21.1 An employee’s employment will only be terminated for a valid reason in

accordance with sec 170DE, Industrial Relations Act 1988. (It is essential that
employers ensure an appropriate disciplinary procedure occurs prior to termination -
see cl 29 Health and Allied Services Award for an example.)

21.2 Notice of Termination by employer.

(a) In order to terminate the services of an employee, the employer shall give to the
employee the following notice:

Period of continuous service Period of notice

Less than a year 1 week

1 year but less than 3 years 2 weeks
3 years but less than 5 years 3 weeks
5 years and over 4 weeks

(b) Employees over 45 years of age at the time of giving of notice and who have
completed at least two years of continuous service shall be entitled to an additional
week’s notice.

(c) Payment in lieu of notice shall be made if the appropriate notice period is not
given. Provided that employment may be terminated by part of the period of notice
specified and a part payment in lieu thereof.

(d) In calculating any payment in lieu of notice, the wages to be used shall be those
the employee would have received in respect of the ordinary time he or she would
have worked during the period of notice had the employment not been terminated.

(e) Subject to the federal Industrial Relations Act 1988, the period of notice in this
clause shall not apply where the conduct of an employee justifies instant dismissal,
or in the case of casual employees who have no expectation of ongoing
employment, apprentices or employees engaged for a specific period of time (of 3
months or longer) or for a specified task or tasks.

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(f) For the purposes of this clause, continuity of service shall be calculated in the
manner prescribed by Clause 15C (3) of the former State Health and Allied Services
award.

21.3 Notice of Termination by Employee

The notice of termination required to be given by an employee shall be the same as
that required of an employer, save and except that there shall be no additional notice
based on the age of the employee.

If an employee fails to give the notice, or fails to work out the period of notice, the
employer shall have the right to withhold moneys due to the employee with a
maximum amount equal to the ordinary time rate of pay for the period of the notice.

21.4 Summary termination

At any time the employer may by notice in writing summarily terminate the services
of the employee under this agreement if the employee:-
(a) engages in any act or omission constituting serious misconduct in respect of
their duties;

(b) wilfully fails or neglects to perform or carry out their powers, functions or
duties in an agreed manner;

(c) commits a serious or persistent breach or non-observance of any of the

provisions of this agreement;

(d) is engaged in any conduct which may tend to injure the reputation or standing
of the employer:

(e) refuses or neglects to comply with any lawful and reasonable order given to
them by the employer or any other person duly authorised by the employer;

(f) Wilfully breaches the confidentiality of any patient, employee or the employer.

At the time of such termination, the employer shall pay all monies due for the time
worked, annual leave due but not taken and any pro-rata leave accrued.

22. REDUNDANCY
If a worker through no fault of his/her own should become redundant, as defined in
the Industrial Relations Act 1988, a redundancy package may be negotiated
between the employer and the employee. All other entitlements up to that date shall

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be paid out as part of this package. The same period of notice applies as for the
termination of employees (cl 23.2 a,b)

23. STAND DOWN OF EMPLOYEES

The employer may deduct payment for any part of a day during which the employee
cannot be usefully employed because of any strike, breakdown of machinery or
stoppage of work for any cause for which the employer cannot be held reasonably
responsible.

The standing down of an employee under this clause shall not break the continuity of
employment of the employee for the purpose of any entitlements.

EMPLOYEE’S
SIGNATURE_____________________________DATE______________

EMPLOYER’S
SIGNATURE_____________________________DATE______________

EMPLOYER’S
SIGNATURE_____________________________DATE______________

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