2 year binding contract

[Miss Swan]

Hello! I've just been offered a basic administration role at a base salary (<$40K/yr). I've gone through my contract at the request of my employer and have been informed that it's a 2 year binding contract. And basically what it means is should I decide to resign before 2 years, I would have to pay the employer the costs of hiring a replacement staff and also the costs incurred in having to train this new staff.

In the contract it says the employer has the right to do so (i.e. seek compensation from the employee). Does anyone know if this contract is legal? The rationale behind this clause is that it takes a lot of time and effort to hire and train the employee, as there are legislations to learn.

I don't have a major issue with this clause as I know I can carry out the duties well and trust that I can get along with my future co-workers. This is in a private education sector, by the way. A lot of people have been telling me not to go for it because the thought of a binding contract is a big turn-off to them. But I signed a 3-year bond with my very first company out of university, and completed my bond easily. So a 2 year bond isn't breaking news to me. But it is my first time coming across such a clause. Regular occupations don't have bonds in their contract.

I would like to know how HR professionals view this clause in my contract.

[Qld IR Consultant]

My first thought would be good luck to them in trying to enforce it. If you are comfortable in signing it then its up to you. Personally if I had the ability to get a job easily somewhere else I wouldn't sign that....Just my thoughts of course.

[Moz]

As you say, "Regular occupations don't have bonds in their contract."

The only time I have seen that (in Australia) is where a company has gone to the expense of bringing someone in from overseas and sponsored them permanent residency. In those circumstances I think it's fair enough. But for a company to ask you to pay their costs to replace you is absurd.

Frankly I would be calling Fair Work Australia about it, I think they would be quite interested to hear about it.

I certainly wouldn't sign it without getting some legal advice.

[Tiger]

I have seen this but rarely and a long time ago. But today, would I do it (as the employer)? I don't think so. I agree employer would probably have buckleys chasing it and it ends up being costly with no guarantee of a win.
Moreover, for an admin role!! I don't think so. Admin roles are easy to fill and generally there is not a huge transfer of knowledge thus a seemless transition is relatively easy. Besides, what might look ok today, in 18 months time, your situation could have changed and you have to look at your options of future employment after the fixed term. it's pretty unlikely you'd get something with a starting date convenient with the end of your fixed termer. So on that basis I wouldn't sign.
However your own value system cannot be ignored. What do you do if you sign and something better comes up in the meantime? In my world, making a commitment means you stick with it.
In your shoes, I would have a conversation with them and point out that there needs to be a degree of reasonableness and whilst you have every intent of hanging around for the duration, life does throw us curve balls which are outside of our control so you are not prepared to put yourself on the line -- if in fact that is the way you feel.

Good Luck
Tiger