Employment agreements have been a legal requirement since the introduction of the Employment Relations Act 2000. The Department of Labour is concerned that there is evidence that many workplaces still don’t have employment agreements in place.
The 1 July compliance deadline puts the spotlight on employers to adhere to their responsibility to ensure written employment contracts are in place for all staff.
Breaching this requirement could result in a penalty being imposed by the Department of Labour. Recent changes to the Employment Relations Act gives labour inspectors the ability to seek penalties against employers who are in breach of employment agreement requirements. These are up to $10,000 for individuals and $20,000 for companies, for failure to comply with this legislation.
Employers must maintain, and keep up-to-date, a copy of each employee’s employment contract that reflects the current terms and conditions of the employment relationship. Employers must also provide a copy of the contract if it is requested to do so by an employee.
It is worth noting that an employee’s 90-day trial period, where one is agreed upon, must be documented in a written employment contract before the employment commences, otherwise the trial period will not comply with the law and may not be enforceable.
The current law dictates that there are certain clauses and provisions that must be included in all employment contracts, there are also minimum conditions that must be met. The Department of Labour has developed a useful and user friendly tool to help employers build employment contracts.
Follow the link below to start building your contracts, if you haven’t done so already, and to check the current minimum standards. Department of Labour’s Employment Agreement Builder.
