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[null,"Prepared By:","Contributors:"]
[null,"Clayton Utz","Amanda Lyras"]
[]
[]
[]
["Global Employment Law Guide"]
[]
["Report Generated: 6/23/2026"]
[]
["View your report results on next tab"]

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["Question","Australia"]
["Lex Mundi Global Employment Law Guide"]
["What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)?"," In Australia, there are two primary categories of worker status - whether you are an employee or an independent contractor. Different rights and obligations flow in relation to that status.   \n An employee is engaged under a contract of service, whereas a contractor is engaged under a contract for services. Essentially, this means that employees work in and are part of a particular business, whereas independent contractors work for themselves by providing services to another person or business. Employees typically perform work under the direction and control of their employer, while independent contractors typically have a high level of control over the work they perform, including their hours, work location and how they do the work. \n Although a person may have agreed to be an independent contractor, they may actually be an employee if the relationship is in substance an employment relationship. The employment status is determined by ascertaining the \"real substance, practical reality and true nature\" of the relationship between the parties, which is not limited to the terms of the contract governing the relationship. For the purposes of ascertaining whether an employment relationship exists, the following should be considered:  \n \n   the totality of the relationship between the parties; and \n \n ·         not only the terms of the contract governing the relationship, but other factors relating to the totality of the relationship, including, but not limited to, how the contract is performed in practice. \n If an employer intentionally or recklessly misrepresents an employee as a contractor, this is considered to be sham contracting and penalties can apply. "]
["Are there different types of employment contracts (for example, fixed-term, indefinite)?"," Employees may be engaged under a full-time, part-time or casual contract, and be engaged on a permanent (indefinite) or a fixed-term or maximum-term contract (noting that there are limitations on the lawful use of fixed-term and maximum-term contracts, as set out below). \n The different categories of employment include: \n \n Full-time employees work a maximum of 38 ordinary hours each week and are employed on a permanent or fixed-term contract (noting there are provisions which may be included to provide for the employee working reasonable additional hours). \n Part-time employees usually work less than 38 hours each week and are employed on a permanent or fixed-term contract. \n Casual employees (see below). \n Fixed-term contract employees who are employed for a specific period of time or task. While there are a number of exceptions, generally speaking, fixed-term contracts can only be for a maximum period of two years and cannot be renewed or extended more than once. In addition, a new fixed-term contract cannot be offered as an employment option if the first 3 points below all apply, and one or more of the scenarios in the 4th point apply:  \n \n the previous contract contained an option to extend which was used; \n the total period of employment for both the previous and new fixed-term contract is greater than 2 years; \n the new fixed-term contract includes an option to renew or extend; or \n there was an initial contract in place (before the previous contract)  that was for a fixed term and for the same or similar work, and there was substantial continuity in the employment relationship. \n \n \n "]
["What requirements need to be met in order for an employment contract to be valid?"," There is no need for an employment contract to be in writing; however, we would recommend as a matter of best practice that this occur to avoid uncertainty and to ensure the contract addresses the requirements of the parties.  \n In order to be valid, an employment contract, whether written or oral, must satisfy the following requirements: \n \n there must be an \"intention\" between the parties to create a legal relationship; \n there must be an offer by one party and it must be accepted by the other party; \n the contract must be subject to valuable consideration; \n the parties must be legally capable of making a contract; \n the terms of the contract must be sufficiently certain and complete so that it can be understood; \n there must be an absence of factors that destroy the validity of the contract (vitiating factors); and \n the contract must not be rendered ineffective by reason of conduct that is illegal or contrary to public policy. \n \n Intention to enter into a legal relationship: \n An employment contract is only regarded as a contract if the parties intend the agreement to be legally binding. The parties must accept and intend that if one party fails to act in accordance with the agreement, the other party will be entitled to take legal action to enforce the contract. Acceptance: \n The acceptance of the offer must be unqualified. The prospective employer may however, withdraw the offer of employment prior to it being accepted. Consideration: \n For the employment contract to be valid, each party must also provide some form of 'consideration'. This element is generally satisfied in employment contracts where a person is hired to perform work in return for remuneration. Contractual capacity: \n The parties must have the capacity (in a legal sense) to enter into the contract. A party will not have capacity if they do not understand the contract (e.g. due to disability or illness).  \n Vitiating factors: \n The contract must be entered into with the genuine consent of each party. Consent will not be genuine if the contract was entered into by mistake, misrepresentation, fraud, duress, unconscionability or undue influence.   \n Unlawful: \n The contract must not be entered into for illegal consideration or have a purpose that is illegal or contrary to public policy "]
["Are part-time employees afforded the same rights as full-time employees?","Yes - in Australia, permanent employment is either full-time or part-time. They have the same entitlements. However, part-time employees work fewer hours and their entitlements are generally determined on a pro-rata basis.\n"]
["Can employment contracts be assigned?","Employment contracts are personal service contracts and the rights to render and receive services under an employment contract cannot be assigned.   \n"]
["What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern?"," The primary legislation that governs employment law in Australia at the federal level is the Fair Work Act 2009 (Cth) (\" Fair Work Act \"), which applies to national system employers and their employees. The common law also establishes a range of important principles that apply to the employment relationship. \n The Fair Work Act includes the National Employment Standards (\" NES \"). The NES can be enhanced by modern awards, which are statutory instruments that provide further terms and conditions. Employers and employees can also negotiate at an enterprise level to create an enterprise agreement. \n Under the Fair Work Act , a transfer of business takes place if the following requirements are satisfied: \n \n the employment of an employee (the ‘transferring employee’) of the old employer has terminated; \n within three months after the termination, the employee becomes employed by the new employer; \n the work the employee performs for the new employer (the ‘transferring work’) is the same or substantially the same as the work they performed for the old employer; and \n at least one of the following connections exists between the old and new employers: \n \n an arrangement that the new employer owns or has use of some or all of the old employer’s assets that relate to the transferring work; \n the work the employee does is outsourced by the old employer to the new employer;   \n the work previously outsourced is insourced; and/or \n they are associated entities within the meaning of section 50AAA of the Corporations Act 2001 (Cth). \n \n \n Under the Fair Work Act , if a transfer of business takes place, generally an employee's service with the old employer will count as service with the new employer. This means that service-based entitlements will be preserved, such as annual (vacation) leave and redundancy (severance) pay entitlements, and transferred across to the new employer. \n However, if the new employer is not an associated entity of the old employer, the new employer may choose whether to recognize a transferring employee's previous accumulated service for annual leave or redundancy pay. If the new employer does not recognise service, the transferring employee will be entitled to an annual leave payout and/or redundancy pay in accordance with the NES , or any more favourable terms that are included in a modern award, enterprise agreement or contract of employment. An employer must also comply with any consultation obligations under a relevant modern award or enterprise agreement. Modern awards and enterprise agreements contain consultation clauses. These clauses generally require an employer to consult with an employee when there is a major change in the workplace, which would include the transfer of business. While the consultation must be meaningful and give employees the chance to provide their views, this does not remove managerial prerogative to make a final decision in relation to the workplace change. \n If an employee's employment is terminated as a result of the transfer of business (that is, they are not offered a role with the new employer), then they would be entitled to redundancy pay. The amount of redundancy pay is assessed in accordance with the NES , or any more favourable terms that are included in a modern award, enterprise agreement or contract of employment. \n An employee also cannot be forced to transfer to another employer and may refuse to accept an offer of employment. However, if an employee has been offered a role with the new employee on terms and conditions substantially similar and overall no less favourable than their current employment, and their period of service is recognised for the purposes of redundancy pay, they will not be entitled to any redundancy pay if they choose not to accept the role, and their employment is terminated. For employees who have access to the 'unfair dismissal' jurisdiction, employers should take reasonable steps to redeploy those employees where their roles are redundant, which may include searching for vacant positions within the organisation or associated entities, and/or making changes to how the workforce is structured. "]
["Do you have statutory rights for employees on change of control of an employer? If so, please give the statute.","Generally no, so long as the employer remains the same. For example, if control of the employer changes by way of a share sale, and all that changes is the shareholders of the company, no rights arise for the employee, as the employer will not change (despite the change in control).However, if applicable, the employer must comply with the consultation obligations under a relevant modern award or enterprise agreement. Modern awards and enterprise agreements contain consultation clauses. These clauses generally require an employer to consult with an employee when there is a \"major change\" in the workplace that occurs in connection with, or as a result of, the change of control.\n"]
["In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee?","An employer cannot unilaterally alter the terms of the employment contract (unless the contract specifically allows it to do so and even in those circumstances care would need to be taken and advice should be sought).An employment contract can only be varied in accordance with its terms, or with the consent of both parties.  To do otherwise could result in the employee claiming that the contract has been repudiated, and bringing an unfair dismissal claim (if they are under the earnings threshold or covered by a modern award or enterprise agreement), or a breach of contract claim. \n"]
["Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights?","Australia is not an employment-at-will jurisdiction. Minimum notice of termination is required to be given under the \nFair Work Act. The relevant notice period ranges from 1 to 5 weeks, depending on the employee's period of service and their age. There is also a statutory regime providing remedies for \"unfair\" and \"unlawful\" dismissals. This is discussed further below.\n"]
["Are there remedies for dismissal without cause or wrongful termination?"," There are statutory and common law remedies available for an employee who has been dismissed wrongfully or without cause. \n Unfair dismissal: \n Under section 385 of the Fair Work Act , a person has been unfairly dismissed if the Fair Work Commission is satisfied that an employee (who is protected from unfair dismissal) has been dismissed and the dismissal: \n \n was harsh, unjust or unreasonable; \n was not consistent with the Small Business Fair Dismissal Code (in the case of employees of a small business which is currently businesses with less than 15 full-time (or equivalent) employees); or \n was not a case of genuine redundancy. \n \n An employee is eligible to make an application for an unfair dismissal remedy if they have completed the minimum period of employment (6 months for large employers and 12 months for small businesses) and one of the following applies: \n \n they earn less than the high-income threshold (which is updated annually, and will be $190,100 from 1 July 2026); \n a modern award covers their employment; or \n an enterprise agreement applies to their employment. \n \n If the claim is successful, the Fair Work Commission may order: \n \n for the person to be reinstated if appropriate in the circumstances; or \n the payment of compensation (which is capped at the lesser of: half of the employee's annual wage or $95,050 (noting this amount changes on 1 July each year)). \n \n Whether a dismissal is \"harsh, unjust or unreasonable\" is determined by reference to the factors listed under section 387 of the Fair Work Act including, for example, whether there was a valid reason for the dismissal, and whether the employee was afforded procedural fairness prior to dismissal (such as being notified of the reasons for the dismissal and/or given an opportunity to respond). \n General Protections: \n The General Protections under the Fair Work Act protect employees from adverse action because of a particular prohibited reason (such as workplace discrimination, having or using a workplace right, participating in protected industrial action, etc). \"Adverse action\" is a broad concept and may include unlawful termination of an employee's employment. \n An employee can make an application to the Fair Work Commission to deal with the alleged contravention of the general protection provisions. Compensation for this claim is not capped. \n Breach of contract: \n An employee may also seek remedies for breach of contract if the dismissal was wrongful or without cause.  The employee may be awarded compensation for financial loss as a result of the breach of the employment contract. However, the employee cannot be placed in a better position than that which the employee would have been in had the contract been performed.  Alternatively, the court may order the employer to perform their obligations under the contract.  This is called specific performance. "]
["Are there protections for whistleblowers?","Yes, there are protections for whistleblowers in Australia which apply to both private and public sector entities. In terms of the private sector, the Corporations Act 2001 (Cth) (\"Corporations Act\") and the Taxation Administration Act 1953 (Cth), provide a corporate whistleblowing scheme and a tax affairs whistleblowing scheme. The laws are designed to discourage white-collar crime and provide a protection regime for corporate, financial and credit sectors. These laws are applicable to any disclosure made after 1 July 2019.Under the Corporations Act, public companies and large proprietary companies are required to have a compliant whistleblowing policy from 1 January 2020 (or otherwise are required to have one within 6 months following the end of the first financial year that a company becomes a \"large proprietary company\") that addresses a range of mandatory criteria set out in the legislation and to make that policy available to officers and employees. Failure to do so is an offense. The types of matters that can be disclosed include matters that breach a range of federal laws, as well as any “misconduct or an improper state of affairs or circumstances\" of the company. Personal work-related grievances are excluded from the scope, except where they relate to retaliation for making a prior whistleblowing report, concern a disclosure under the Corporations Act or have \"significant implications\" for the company. Where a whistleblower satisfies the relevant criteria, they will not be subject to any civil, criminal or administrative liability for making a disclosure.There are also confidentiality provisions that make it an offence to disclose the identity of a discloser, including information that is likely to lead to the identification of the discloser, without the consent of the discloser. There are limited exceptions to this prohibition. Similarly, whistleblowers are protected from \"victimisation\", including dismissal, injury in their employment, alteration of their position or duties to their disadvantage, harassment or intimidation, discrimination and a range of other types of detriment because they have brought a whistleblowing complaint.\n"]
["Do employees have a right to privacy? If so, what are the remedies for a breach?"," At common law, employees do not have a right of privacy in the workplace and there is no authority that extends an employer's implied duties to cover employee privacy in the workplace. \n Generally, the remedies available to an employee for breach of privacy are outside the contract of employment. For example, the law of defamation and an action for breach of confidence may provide some limited protection against the distribution of private information about an employee to third parties. \n The Privacy Act 1988 (Cth) imposes privacy obligations on both public and private sector employers in relation to the collection, use and disclosure of personal information. However, under the Act , there is an exemption for what is known as \"employee records\" which covers that information generally contained in an employee's personnel file that relates to their employment (for example, information about their contact details, salary or wages, conditions of employment and performance or conduct).  \n This means that employers are not required to comply with the obligations in the Privacy Act in relation to the storage and use of employee records. (We note that this exception is currently being considered and its continued application is subject to change). In the interim, in terms of best practice, the Office of the Australian Information Commission recommends that employers: \n \n accurately record the information they collect, keep it up-to-date and store it securely; \n limit the use and disclosure of employee health information to what is necessary to manage their legitimate purpose; and \n regularly review whether they still need to retain this information for that purpose. \n \n In New South Wales and the Australian Capital Territory, some additional privacy protections are afforded to employees. Under the Workplace Surveillance Act 2005 (\" NSW \") and  Workplace Privacy Act 2011 (\" ACT \"), employees must be notified in advance of camera, computer and tracking surveillance. However, covert surveillance may be authorized by the court where particular employees are involved in unlawful activities in the workplace.  \n Under the employment contract, employers may enforce strict codes relating to the use of the Internet, email and social media. These codes may allow access to and the monitoring of emails and online conduct by employees. \n Further, employees generally have a right to privacy in relation to their personal medical information. Employers can only request medical information directly relevant to an employee’s capacity to perform their job, safety, or for managing sick leave. "]
["Are employees afforded any anti-discrimination protection?"," There are two key sources of anti-discrimination law that apply to Australian workplaces: anti-discrimination legislation and the General Protections provisions contained in the Fair Work Act . \n Anti-discrimination statutes prohibit discrimination in a range of areas, including in the workplace, and on the grounds of a number of attributes such as age, race, gender, pregnancy, marital status, and citizenship, amongst others. The Fair Work Act also prohibits discrimination on a number of grounds. \n Anti-discrimination Acts: \n There is a combination of federal, State and Territory anti-discrimination or equal-opportunity legislation. There are four substantive acts at the federal level that apply to employees: \n \n Racial Discrimination Act 1975 (Cth); \n Sex Discrimination Act 1984 (Cth); \n Disability Discrimination Act 1992 (Cth); and \n Age Discrimination Act 2004 (Cth). \n \n In addition to the federal legislation, each state and territory in Australia has equal opportunity and anti-discrimination legislation. These regimes provide protections against discrimination on the basis of further grounds, for example, gender identity, physical features, employment activity, pregnancy and breastfeeding, marital/domestic status, sexual orientation and carer's responsibilities, as well as prohibit sexual harassment and certain types of vilification. \n Under this regulatory framework, specific protected attributes are listed and discrimination on the basis of those attributes is prohibited in a range of fields, including the workplace. \n General Protections: \n The General Protections under the Fair Work Act protect employees from adverse action on the basis of the person’s race, colour, sex, sexual orientation, breastfeeding, gender identity, intersex status, age, physical or mental disability, marital status, family or carer’s responsibilities, subjection to family and domestic violence, pregnancy, religion, political opinion, national extraction or social origin.  "]
["Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits?"," Under the Fair Work Act , employees may be entitled to certain types of leave, including annual (vacation) leave, personal/carer's (medical/carer's) leave and parental leave. \n The NES outlines the minimum leave entitlements for employees. An award, enterprise agreement or employment contract may also provide for further leave entitlements, but these cannot be less than the minimum entitlements under the NES . \n Annual leave \n Full-time employees are entitled to 4 weeks of paid annual leave per year, based on their ordinary hours of work. Part-time employees are entitled to a pro rata amount based on their ordinary hours of work. Shiftworkers are entitled to up to 5 weeks of paid annual leave per year. An employee's entitlement to annual leave accrues progressively and accumulates from year to year (i.e. it does not operate as a \"use it or lose it\" entitlement) and any untaken balances are paid out on termination of employment. \n Personal/carer's leave \n Full-time employees are entitled to up to 10 days of paid personal/carer's leave per year. Part-time employees are entitled to a pro rata amount. \n An employee is entitled to take personal/carer's leave because they are not fit for work due to sickness or injury, or to provide care or support to a member of their immediate family or a member of their household because of sickness, injury or unexpected emergency. \n If all paid personal leave has been used, employees can take 2 days unpaid carer's leave on each permissible occasion. \n An employee's entitlement to personal/carer's leave accrues progressively and accumulates from year to year but is not paid out on termination of employment. \n Parental leave \n Employees are entitled to up to 12 months of unpaid parental leave and may request an additional 12 months of leave (up to 24 months in total). Parental leave entitlements include: \n \n unpaid parental leave; \n unpaid pre-adoption leave; \n special unpaid special parental leave; and \n paid/unpaid no safe job leave. \n \n While the above entitlements have not changed in the last 12 months, there have been recent amendments to the NES in relation to parental leave. In 2025, protections were introduced to ensure that employees planning to take, or who are receiving, employer-funded paid parental leave can’t have this leave refused or cancelled if their child is stillborn or dies. These changes don’t apply if an employee requests to cancel the leave or an exception applies.  "]
["Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity?"," During the employment relationship, employees owe a duty of fidelity to their employer which includes refraining from business activities that compete with the employer.  This obligation may extend beyond the termination of the employment. \n The employment contract may also include express terms whereby the employee undertakes to refrain from certain activities for a period of time after the employment contract has ended. Some of the common restrictions, known as a restraint, include: \n \n geographical limitations on where the former employee may work; \n a time limit of employment of a similar nature; \n the non-disclosure to others of certain information and know-how acquired during the employment; and/or \n the non-solicitation of the employer's customers or employees. \n \n A post-employment restraint is not enforceable in Australia unless: \n \n it is not more restrictive than necessary to protect the employer's legitimate interests; \n it is reasonable in the interest of the party to restrain; and \n it is in the public interest. \n \n A legitimate interest may include trade secrets, confidential information, customer connections or intellectual property.  However, an employer is not entitled to freedom from competition in and of itself and without more a restraint clause would generally be invalid. \n Whether the restraint is reasonably necessary for the protection of the employer's legitimate interests will depend on: \n \n the seniority and knowledge of the employee subject to the restraint; \n the length of time of the restraint; \n the geographical areas in which the restraint operations; \n the restrictions that are imposed on the employee; \n the size and nature of the industry; \n the effect of the restraint on the employee’s ability to earn a wage; \n the bargaining power of the contracting parties; and \n the effect on the business should the restraint be unenforceable. \n "]
["Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant?","No - an employee cannot be terminated for refusing to sign a restraint of trade clause. As discussed above, this would likely amount to a variation in the contract and an employer cannot unilaterally vary a contract of employment. If the employer terminates the employment of the employee for not signing a restraint of trade clause, depending on the circumstances, this could result in a breach of the contract. As discussed above, the employee may seek remedies for breach of contract.  When entering into an employment contract, no specific consideration needs to be allocated to the restraint.  However, if varying a contract to include a restraint, an employer needs to provide valuable consideration, which is often done by way of a pay increase, and which can assist in the enforceability of the restraint."]
["Does your jurisdiction require contributions to a pension or retirement scheme?","Under \nsection 12 of the \nSuperannuation Guarantee (Administration) Act 1992 (Cth), employers are required to make superannuation contributions on behalf of employees.\nUnder the superannuation guarantee scheme, almost all employers are required to make mandatory superannuation contributions. These contributions are usually based on the prescribed minimum percentage of the employee's ordinary time earnings, which is 12% for 2025/2026 but can be higher in some modern awards or enterprise agreements.\nEmployers may also make superannuation contributions above this mandatory minimum percentage.\nStarting 1 July 2026, Australian employers must pay employee superannuation at the same time as their wages (weekly, fortnightly or monthly). Super contributions must reach the employee's fund within 7 calendar days of payday.\n"]
["Are certain benefits mandated by your jurisdiction?"," Employee benefits are mandated under the NES in the Fair Work Act and additional benefits can be provided under modern awards and enterprise agreements. \n The NES outlines the following minimum entitlements for employees: \n \n maximum weekly hours; \n requests for flexible working arrangements; \n offers and requests to convert from casual to permanent employment; \n parental leave and related entitlements; \n annual leave; \n personal/carer's leave, compassionate leave and paid family and domestic violence leave; \n community service leave; \n long service leave; \n public holidays; \n superannuation contributions; \n notice of termination and redundancy pay; and \n Fair Work Information Statement and Casual Employment Information Statement. \n \n Modern awards apply to industries and occupations, providing mandatory terms and conditions in addition to the NES . Additional benefits are also provided for under enterprise agreements; however, the enterprise agreement must pass the \"better-off\" overall test. That is, the employee must be better off overall if the agreement applied to the employee than if the relevant modern award applied to the employee.  "]
["Is it permitted to have a mandatory retirement age in your jurisdiction?","Compulsory retirement ages are generally unlawful in Australia, with age-based forced retirement expressly prohibited under anti-discrimination laws across most jurisdictions. Except in certain areas of public sector employment (for example, certain judicial offices or members of the Australian Defence Force), employees are not lawfully required to retire at any particular age. Employers cannot impose a compulsory retirement age unless expressly authorised by law, as doing so would ordinarily amount to unlawful age discrimination.  \nWhile many people leave work around the time they become eligible for the Age Pension or can access superannuation, that timing reflects personal or financial choice rather than a legal requirement.\n The Age Pension age is 67 years. To be eligible for a pension, the person must be pension age and meet residence rules, an income test and an assets test. \nSeparately, licensing, medical, or periodic re-qualification regimes in some occupations can create practical constraints for older workers without constituting a compulsory retirement age.\n"]
["Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age?","The obligation to pay into superannuation applies as long as the person remains employed, regardless of age.\n"]
["Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment?","An employee cannot refuse an employer's reasonable and lawful direction to perform work, including to perform work at the workplace. However, in some circumstances, employees may be able to refuse to attend the workplace because of a reasonable concern for their health and safety or another legitimate reason. If an employee refuses to comply with an employer's reasonable and lawful direction to work at their usual workplace, the employer may take disciplinary action against them, which may include termination of employment.\nHowever, in deciding on the appropriate disciplinary action to take, employers must comply with the general protections and unfair dismissal obligations under the \nFair Work Act. Given the risk of unfair dismissal or discrimination claims, care should be taken before any disciplinary action is taken in regard to a refusal to work at the workplace.\nEmployers should ensure they consult with their workforce, and take steps to understand any particular reluctance to return to the workplace. This should assist in managing a return to the workplace.\nFrom 1 September 2026 (1 July 2027 for employees of small businesses), employees in Victoria who can work from home will have the legal right to do so two days a week. \n"]