An employment contract is a legally binding document that contains the terms and conditions of an employment relationship. It sets the expectations about the role and working conditions to be agreed upon by both the employer and the employee. An appropriate and legally sound employment agreement is vital between an employer and an employee who works in New Zealand.
Preparing an employment agreement can be a challenge, especially for a new employer. Under the guidance of Premium Accounting Solution’s experienced and knowledgeable professionals, employers can have easy access to employment contract advice. We can walk you through the employment agreement preparation process and help you complete your contract efficiently.
1. An employment contract is a legal requirement.
An employer is legally required to provide an employee with a copy of their employment agreement upon starting employment. Failure to provide the written employment agreement may result in a fine of $1,000 per employee.
2. It gives protection to both parties.
A good employment agreement will give both parties instructions about what is expected from them and what rights they are entitled to in the employment relationship.
3. It provides guidance when there is a dispute.
When a problem or misunderstanding comes up, the employee and employer can get employment contract legal advice from an employment relations authority to clarify and settle the matter. If a legal dispute happens, an employment contract would be one of the most important forms of evidence to refer to.
1. Collective employment agreements
A collective agreement is negotiated between registered unions (representing employees who are members of the union) and employers.
2. Individual employment agreements
An Individual employment agreement is negotiated by an employer and an employee; they should discuss the terms and conditions of employment fully and have them down in writing in the employment agreement before the employee starts work.
What are the legal requirements for an employment contract? The law necessitates that certain terms must be fully covered in the contract including the following:
- The names of the employer and the employee.
- A description of the work to be performed.
- An indication of the place of the work.
- The agreed-upon hours or an indication of the hours that the employee will work. This could include the number of hours, the start and finish times, or the days of the week the employee is expected to work.
- The wage rate or salary payable and how it will be paid. The amount must be above or equal to the standard minimum wage.
- A clear explanation of how employment relationship problems will be solved.
- A statement that the employee is entitled to (at least) time-and-a-half payment for working on a public holiday.
- An employment protection provision (for certain employees) that comes into effect if the employer’s business is sold or transferred, or if the employee’s work is contracted out.
- Any other additional terms that have been agreed upon, such as trial periods, probationary arrangements, sick leave, protection of intellectual property, or availability provisions.
- For fixed-term agreements, the contract should also specify the nature of employment in this case.
Some minimum employee rights required by law (like annual holidays) are not necessarily included in the employment contract. But whether they are included in the written contract or not, the employer must provide them by law.
In need of advice from an employment contract specialist? Our team of experienced professionals can give employment contract advice for employees starting a new job and new employers alike.
Premium Accounting Solution can help you set up a new employment agreement easily. Just give us a call, and make an appointment with us today. If you tell us your needs, your concerns, and your expectations, we will help create a tailored employment agreement to suit your situation.