Time is running out for employers to update contracts

Time is running out for employers to update employment contracts

To ensure they comply with recent amendments to the Employment Relations Act 2000 (ERA), employers only a few weeks to update existing employment agreements.

These new requirements, which relate to working hours, cancellation of shifts and restrictions on secondary employment, will apply from 1 April 2017.

“I believe most small employers are unaware of the changes. With them taking effect on April first, it’s like an April Fool’s Day joke. However, it will be no joke for employers who have staff waiting to sue them,” says Max Whitehead, Managing Director of Whitehead Group.

The danger to employers

• If employers fail to update their employment agreements, they will be unable to

• require employees be available to work outside standard working hours

• enforce restrictions on employees taking secondary employment

• cancel an employee's shift.

If that’s not enough, employers who do not comply could be liable for a fine of up to $20,000.

“Once word gets around, disgruntled workers will use this law change against their bosses,” says Mr Whitehead.

What should employers do?

Mr. Whitehead says some employers are not acting because they are uncertain about of how to go about it. However, to avoid problems farther down the track, it is imperative they make any necessary changes.

Mr. Whitehead: “I suggest employers urgently get advice, and I’m happy to email a guide to assist them get through this.”

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