Employment Agreements For All Employees A Requirement From July 1

The Department of Labour is reminding all employers that from 1 July 2011, employers must keep copies of employment agreements or terms and conditions of employment for all employees signed by both parties.

"Employment agreements have been required by law since the introduction of the Employment Relations Act 2000. There is evidence that many workplaces still don't have employment agreements in place, and this 1 July deadline will put responsibility on all employers to ensure agreements are in place, or they may face penalties," says the Department of Labour's Chief Advisor - Employment Relations, Craig Smith.

"It's the employer's responsibility to maintain and keep an up to date copy of each employee's employment agreement that reflects the current terms and conditions of the employment relationship. Employers must also provide a copy of the agreement if an employee requests it," says Mr Smith.

"Recent changes to the Employment Relations Act give labour inspectors the ability to seek a penalty against an employer who is in breach of employment agreement requirements," he says.

"There are penalties of up to $10,000 for individuals and $20,000 for companies for failure to comply with the legislation," says Mr Smith. "If a 90-day trial period is agreed between the employer and the employee it must be in the written employment agreement before the employment begins, otherwise the trial period doesn't comply with the law," he says.

There are some provisions that must be included in employment agreements by law, and there are also a number of minimum conditions that must be met regardless of whether they are included in agreements.

The Department of Labour has developed an Employment Agreement Builder, to help create employment agreements - www.dol.govt.nz/agreementbuilder.

ENDS

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