17 June 2011 - From 1 July 2011 all employers must keep a copy of their employees signed employment agreements or current terms and conditions of employment or they may face a penalty action for a breach of the law. This applies to employers who may have hired employees on a verbal agreement or who do not have current up to date agreements in place.

Where an employer has given an employee an intended agreement the employer must retain a copy of the intended agreement even if the employee has not signed it or agreed to the terms and conditions.

The employer must keep the employment agreement or terms and conditions up to date and provide copies of these if requested by the employee.
There are certain clauses that must be included in an employment agreement. This includes the name of the employer and employee, a description of the work to be performed, the place of employment, times the employee is to work and the wages or salary, along with an explanation of services available for solving problems. Failure to incorporate these elements into an agreement may also result in a labour inspector taking a penalty action against an employer.

A full list of clauses that are required in an employment agreement is available on the Department of Labour’s website. Employers and employees may also choose to include additional clauses relating to minimum standards in employment law, or additional clauses that have been negotiated and agreed upon by both parties.

The Employment Relations Act 2000 also makes it clear that minimum employment standards must be met, such as an entitlement to four weeks annual leave. Even if they are not recorded in an employment agreement, they are still enforceable entitlements.

The Department of Labour has developed an Employment Agreement Builder to help you build your own employment agreement. Please note it is best practice to ensure that an employee indicates their agreement by signing their employment agreement before they start work.

For further information, visit the Department of Labour’s Website or phone the Contact Centre on 0800 20 90 20.

New Employment Relations and Health and Safety Resource

The Department of Labour has produced a new resource to assist businesses. The Big Six is a series of six brochures that provide checklists and tasks that draw attention to legal responsibilities and good employment practices. The brochures cover the key areas on which small and medium businesses commonly seek information. Links are provided to the Department’s online tools and to further information on: health and safety; hiring new employees; pay; holidays and leave; managing performance; and ending employment relationships.

The brochures also list other organisations that can help with starting and running a business.

For more information about the Big Six, or to download a copy, please visit the Department of Labour's website.

90-day Trial Period for Small Businesses

From 1 March 2009, businesses that employ fewer than 20 employees will be able to hire new staff for a trial period of up to 90 days. The trial period must be recorded in a written employment agreement at the beginning of the employment relationship. An employee cannot pursue a personal grievance for unjustified dismissal if he or she is dismissed during the trial period. The employee can however raise a personal grievance if issues such as discrimination arise.

The Department of Labour will be updating its web-based Employment Agreement Builder to include guidance on how to incorporate trial provisions in employment agreements.

For more information on the new law please visit Department of Labour's Website.

5 DECEMBER 2008 - Following up from an article published in August 2008 on Tax Obligations for growers (http://www.nzkgi.org.nz/grower-advice_1.html#408) which was written by Joanne Dunne and Marcus Roberts of Minter Ellison Rudd Watts, they have written a second article that further expands on how to determine if you have hired an employee or an independent contractor.

A copy of this article is available for download by clicking on the PDF attachment below.

The opinions expressed by the authors in the following article may not reflect NZKGI's opinions. NZKGI does not make any representation as to the accuracy of information in this article.

Joanne Dunne is a Partner and Marcus Roberts a lawyer specialising in the Tax Team at Minter Ellison Rudd Watts. They can be contacted by email Joanne Dunne and Marcus Roberts.

AUGUST 2008 - Every employee must have an employment agreement. Employers can be prosecuted if employees do not have an agreement. NZKGI has drafted an orchard workers agreement and this has been vetted by the Department of Labour. A copy of this agreement may be downloaded by clicking the PDF attachment or click here to E-mail NZKGI's Office for a copy.