Employment agreements - a must for everyone
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.
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