Did you know that every employee must have a written employment agreement? Yet we continue to hear in the news that there are cases where there is no employment agreement is in place.
Why do we need to have a written employment agreement?
- To comply with legal requirements (Employment Relations Act).
- Helps the employee and the employer have clear expectations of what’s required of them and what they’re entitled to. It contains the terms and conditions of employment.
Are there minimum requirements that an agreement must have?
Yes. To be legally compliant with the Employment Relations Act) the minimum requirements are:
- Names of parties (employer and employee).
- A description of the work to be performed.
- Location/Place of work.
- Hours of work.
- Wage rate or salary payable (must be equal or greater than the relevant minimum wage) and how it will be paid.
- Statement that the employee will get (at least) time and a half payment for working on a public holiday.
- How to resolve employment relationship problems (in plain English) including advice that personal grievances must be raised within 90 days.
- Employment Protection Provision for employees in the sale, transfer or contracting out of a business.
- If the employment is fixed term, must state the nature of the employment.
You’ll normally see quite a few more terms included in your employment agreement, as it must include other matters agreed upon, such as trial periods, probationary arrangements, or availability provisions.
Assembling suitable employment agreement templates for my clients is one of the services I provide, so give me a call if you require some guidance in this area.