Creating Clear and Compliant Employment Agreements

An individual employment agreement is not just a formality; it is the foundation of a transparent and successful working relationship between an employer and an employee. It's the document that sets the tone for your ongoing relationship and outlines the expectations and responsibilities of both parties. In essence, it's your roadmap to a productive and mutually beneficial employment relationship.

Under the Employment Relations Act (2000), drafting a clear and comprehensive employment contract is not optional; it's a legal necessity. This document must be in the hands of your employee before they commence their role, particularly crucial if you're implementing a 90-day trial period. Here, we delve into the essential components of an employment agreement to ensure clarity, compliance, and success.

Essential Components of an Employment Agreement

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Identification of Parties:

Begin with the basics. Clearly state the names of the employer and the employee to define who the agreement is between.

Job Description:

‍Avoid ambiguity by including a detailed job description. This ensures the employee understands the scope of their role and what is expected of them.

Work Location:

Specify where the employee is expected to perform their duties. This adds clarity and sets clear expectations from the outset.

Work Hours:

Total hours of work.

Specific start and finish times.

Days of the week the employee is scheduled to work.

Compensation:

Detail the wage rate or salary, ensuring it meets or exceeds the minimum wage.

Describe the payment method and schedule.

Public Holiday Pay:

Confirm the employee's entitlement to at least time-and-a-half compensation for working on public holidays.

Employment Protection:

For roles that may be affected by significant changes (like business sales or contracting out), it's important to include an employment protection provision to safeguard the employee's interests.

Additional Agreements:

Outline any other specific arrangements, such as trial periods, probationary arrangements, or availability requirements.

Nature of Employment:

Clearly state whether the employment is on a fixed-term basis and articulate the genuine reason for this fixed term. This section requires careful consideration to ensure the reasoning aligns with legal standards.

Resolving Employment Issues:

Provide a clear process for addressing employment-related grievances, including timelines for raising issues like personal grievances or sexual harassment complaints.

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Creating an employment agreement that covers these bases will not only ensure you're in compliance with the Employment Relations Act but also set the stage for a clear and constructive working relationship. Remember, the specificity and clarity of your employment agreement can greatly reduce misunderstandings and potential conflicts down the line.

In drafting your employment agreements, it's often wise to seek legal advice or HR expertise to ensure that your documents are not only compliant but also tailored to the unique needs of your organisation and the roles within it.

By investing this effort upfront, you're laying the groundwork for a successful and positive employment relationship.

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