Written Employment Agreements Compulsory from 1 July

Changes to the Employment Relations Act as at 1 July 2011 mean all employers must have signed employment agreements for all employees.  The obligation applies irrespective of when the employment relationship started. 

The amended provision specifies that an intended agreement (generally a written agreement not yet signed) "must not be treated as the employee's employment agreement" if the employee has either not signed the agreement or not agreed to any of the terms and conditions. 

Penalties imposed on employers for failing to meet basic obligations under the Employment Relations Act have been attracting penalties at levels that are significant. 

The absence of a written employment agreement often surfaces in the context of a personal grievance or other employment relationship problem.  Having failed to meet basic obligations under the Act immediately places an employer at a disadvantage in the context of resolving such issues.

Anyone requiring assistance preparing employment agreements or managing the issues associated with the latest obligations should contact Senga or Diane at Everest Group who will be happy to assist.