Contract of Employment: Verbal vs Written Agreement in Australia

This report discusses the legal implications of verbal and written employment contracts in Australia. It emphasizes the eligibility of employees to claim compensation for damages and the multi-factor test used to determine the existence of a contract. The report uses a case study to illustrate the application of these concepts. The subject is employment law and the course code is LEGL3111. The college/university is not mentioned.

LEGL3111 ASSESSMENT
ONE
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6
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INTRODUCTION
Contract of employment is a legal term used to establish the contractual relationship
between the employer and employee. This contains all the terms and conditions which can allow
the individual to approach certain employment opportunities in the organization. The current
study will discuss the employment agreement between the stakeholders. Henceforth, report will
emphasis on the grounds that will decide whether the employment terms are there between the
parties. Proper assassination will be done over the case study to determine whether the
contractual terms are set to decide the employment between the parties.
MAIN BODY
As per the Employment right act 1996 any relationship between the parties are
established with the use of contracts. The employment contract consider three factors such as
offer, acceptance and consideration (Adebayo, 2021). As per the contract law it can state that the
relationship between organization and employee is established with the use of contract of
employment. This legal agreement between the employer and the employee finalize all the terms
and conditions on which employment is completely based upon. In the face of Australia's law
legal agreement become the basis to finalize whether the individual or respective person is an
employee under the particular organization. This legal agreement established between the
organization and employee set all the ground rules on which such employment terms will be
based upon. This may involve all the relevant conditions that can set a direction to the
employment opportunities offer to employees (Forsyth, 2021.). Contract of employment
mentioned all the different terms and conditions on which employment is completely based. If
the employment contract is not there between the employer and the employee than it is very
difficult to prove that the two person are in contractual agreement in term of laws and legislation.
Apart from the written employment agreement verbal contract between the parties are also
permissible for the legal action. Even if the contract of agreement is verbal between the employer
and the employee in the face of law this verbal contract is also permissible for the respective
actions. As per the Fair work act of Australia it is clearly mentioned that in case there is not any
written contract is there between the parties but verbal contract are there between the parties than
this will also find eligible for the legal implications in respect to the employment. So, multi-
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factor test is also applied in order to determine whether it is a contract of employment or an
independent contract.
In Australia both the contractual terms established between the employer and the
employee whether it is verbal or written are acceptable in the face of law. Employment is a
mutual terms established by the parties that can allow the individual or an employee to do an
employment in the organization. If all the terms and conditions related to the employment are
clarified by the organization and the employee is completely aware with all the conditions than
even if there is verbal agreement between the parties the contract of employment is established
by the stakeholders (Persian and Agutter, 2021). In Australia verbal employment contract also
found to be eligible if the conditions are accepted by both the parties employer and employee and
mutually agreed on a certain ground. Verbal agreement is also found to be a legal if both
employer and employee are aware with the employment related terms and conditions.
Marty and Simon both the stakeholders are also not been involved in the contractual
agreement in written related to the employment at the organization (Davidovitz and Cohen,
2021). Only the verbal terms are set between them which make the employment contract
verbally active. In the face of Australia legislation Fair work act any employment contract
established between the organization and the employee based on verbal terms are also eligible
for the employment contract between the parties. As the Marty and Simon both the individual get
along with the employment contract with the use of verbal agreement or terms hence the contract
of employment is active verbally. All the payment and the terms are decided verbally between
the Marty and Simon which make the entire contract or agreement verbally active (Proctor-
Thomson, Donnelly and Parker, 2021). As per the Employee Right act 1996 any damage that has
been occurred while performing the employment related role or responsibility are permissible for
the compensation by the employer itself. This is the legal right of the employee to redeem the
compensation or to claim the value equivalent to the damage that has been occurred at the work
place while performing the assigned role and responsibilities.
After the six months of the employment term Mart and Simon visited the client place
where're the laptop battery got exploded. This could result into the damage to the laptop. Simon
contain all the rights to ask for the compensation related to the damage occurred. Even if the
employment agreement is not made in written format between the parties still the verbal
agreement is there. On the basis of the verbal agreement between the Marty and Simon the
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employment contract is there between the parties (Riggs, 2021). Verbal agreement between the
employer and the employee are also found to be permissible for the damage in the present case
scenario. Marty cannot deny the compensation asked by the Simon on the ground that there is
not any legal agreement or written agreement is there related to them, employment hence they
are not eligible for any kind of compensation. Yes, in court Simon will be requiring to prove that
there is a verbal agreement is there between the Simon and Marty.
In accordance with the multi-factor test, it has been identified that a series of questions
about different aspects of relationship between an organisation and workers who involved within
a contract so that effective outcome can be generated. These questions are related to nature of
control exercised over a worker and the mode of remuneration that helps to determine whether
there is any contract between the employees. As per the given case, it has been identified that
there were questions and answer performed in Marty and Simon case in which different question
asked that assist to examine how much company pay to Simon, number of duty hours etc. That is
why, it can be stated that the questions that cover degree and nature of control then it leads to
multi-factor test and this lead to make Simon as an employee of the company. In this situation, a
relationship is also developed between Marty and Simon and though there is no contractual
decision between the parties but the conversation between them are meet the criteria of multi-
factor test.
In the given situation Simon is eligible to claim the compensation against the damage
occurred. Simon has to submit the bill related to the damage than only the eligibility related to
compensate the whole amount will create. Simon only require to prove that there is an
employment agreement established between the Marty and Simon. Verbal agreement is also
permissible in front of the law. An employee can also claim its employment at any of the
organisation if the verbal agreement is established between the parties. This is not necessary that
the employer and employee must only established the written agreement in order to prove the
employment. In the current situation Simon do not hold any of the legal agreement that is in
written format just to prove the employment in the organisation (Schofield-Georgeson, 2021). As
there is not any legal written agreement is made between them which could allow the employer
and employee to only prove the employment with the support of verbal agreement and terms
decided between the parties. Simon is already working at the BikeDrop which made eligible to
claim the compensation regarding the damage occurred. Simon's laptop battery got exploded
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which made the Simon eligible for compensation. As the damage was occurred at the time Simon
was fulfilling its own professional role in the organization. Every employee can claim the
damage related to the losses occurred at the office or work place. Simon was using the laptop for
te office work only and the respective asset got damaged which made the person eligible for
claiming compensation against the damage is occurred. Simon is an employee of the BikeDrop
and not a contract at the organisation which made the Simon completely eligible to claim the
compensation to mitigate all the damage that has been occurred.
CONCLUSION
Employment law of Australia authorise both verbal as well written contract related to the
employment between the employer and the employee. Employee Right Act 1996 provide the
legal right to the employee to claim any damage that is occurred while performing the
professional role and responsibility for the employer. Simon get all the legal right to claim the
laptop damage from the BikeDrop. Company will have to compensate all the damage Simon
could face. Even if there is not any written agreement of employment is there Simon can claim
its employment status based on the verbal agreement established between the employer and
Simon itself.
REFERENCES
Books and Journal
Adebayo, B. O., 2021. The Nexus Between Vicarious Liability of Employers and the Acts
Committed “in the Cause of Employment” By The Employees: A Discourse. Journal of
Commercial and Property Law. 8(4). pp.69-86.
Davidovitz, M. and Cohen, N., 2021. Alone in the campaign: Distrust in regulators and the
coping of front‐line workers. Regulation & Governance.
Forsyth, A., 2021. ‘Prova di Solidarietà’: How Effectively are Unions and Emerging Collective
Worker Representatives Responding to New Business Models in Australia and Italy?.
In The Collective Dimensions of Employment Relations (pp. 205-238). Palgrave
Macmillan, Cham.
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Persian, J. and Agutter, K., 2021. European Post-War Migrants and Indigenous Australians: A
History in Fragments. History Australia. 18(1). pp.112-129.
Proctor-Thomson, S., Donnelly, N. and Parker, J., 2021. Bargaining for gender equality in
Aotearoa New Zealand: Flexible work arrangements in collective agreements, 2007–
2019. Journal of Industrial Relations. 63(4). pp.614-640.
Riggs, N., 2021. Serious misconduct by an employee. PRECEDENT. (164). pp.16-21.
Schofield-Georgeson, E., 2021. Industrial legislation in Australia, 2020. Journal of Industrial
Relations. 63(3). pp.377-394.
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