Waikato Business News January/February 2017

27
Getting employment
contracts right
In Waikato Business News’ November 2016
survey, 90 percent of respondents predicted
that 2017 would be a more positive year for
their businesses than 2016.
For many Waikato businesses,
2017 will be
a time of growth and
expansion, which usually
requires an increase in
employees.
Following some significant
employment law changes in
April 2016, particularly in
relation to hours of work for
both hourly wage and salaried
workers, there’s a good chance
that the employment agreements
currently used by many
employers are now out of date.
While the topic of individual
employment agreements
(IEAs) is for most, a big yawn,
they are the founding document
that an employer and
employee agree will govern
their working relationship,
workplace wedding vows if
you like, so getting the terms
right from the outset is crucial.
There are seven clauses that
are mandatory inclusions in
IEAs, pursuant to section 65
of the Employment Relations
Act 2000. Five of these I refer
to as the ‘five Ws; Who (name
of the parties), Where (location
of the work), When (the
hours of work), What (the role
the employee will be performing)
and Wages (how much the
2013
Even where there is a relevant
clause in the IEA which
means the action will be lawful,
it still needs to be justified.
Suspending an employee
during a disciplinary investigation
merely because the IEA
makes it lawful, will still be
held to be an unjustified suspension
if there is no justifiable
reason why the employee
cannot continue working during
the investigation.
Other useful clauses that
you may not have in your IEA
but should, include a clause
that an employee will agree to
sign a medical request authorisation
allowing the employer
to discuss an employee’s prognosis
with a treatment provider
when there is a long-term medical
incapacity issue, a force
majeure/act of God clause that
allows an employer to request
employees take annual leave
immediately if the business is
shut-down temporarily due to
unforeseen circumstances such
as earthquake or flood and a
clause that allows an employ-
employee will be paid).
The remaining two clauses
comprise a clause that states
that an employee has 90 days
to raise a personal grievance
if there is an employment
relationship problem and a
clause known as a restructure
or employee protection provision,
which specifies the process
an employer will follow
in the event of a sale or transfer
of the business.
However, there are many
more clauses (most IEAs
are around 15 or more pages
long) that are very useful to
have in an IEA and whose
true worth will not be known
until a specific employment
problem arises.
For an employer’s actions
SAVE
to be considered fair and reasonable,
the action must be er to deduct money from an
NOW
both lawful and justified. For employee’s pay if they damage
an action to be lawful, it usually
requires the action to be owe the employer money.
their uniform or cell phone, or
permitted
on
in accordance
our
with
Nissan
There are so many possible
the IEA.
issues that can arise during an
For example, if you want to employment relationship, and
suspend an employee (usually employers with a comprehensive,
up-to-date IEA will be
on pay) during a disciplinary
BULK
investigation, this would only grateful
BUY
in times of trouble
be lawful if there is a clause that they put the effort in from
in the IEA that allows the the outset. An IEA can be in
employer to do this.
template form, so once you
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EMPLOYMENT LAW
> BY ERIN BURKE
Employment lawyer and director at Practica Legal
Email: erin@practicalegal.co.nz phone: 027 459 3375
have a copy it can be used for ent/legal advice before signing.
tageous to the employee is
Section 60A of the Act being included, such as a pay
successive new employees at
SAVE
no additional cost.
NOW
requires the parties to negotiate
an employment agreement not merely an increase to the
increase (provided that it is
How to change existing
employees to a new IEA in good faith. The latter means minimum wage which must be
Once agreed to and signed, that the parties should not do complied with as soon as the
IEAs can only be varied by anything that may deceive or new minimum wage order is
on
mutual agreement
our
and in writing.
Where employees are on should raise any issues or Providing an incentive
Nissan
mislead the other. Employees in force).
old IEAs that have seen better queries relating to a new IEA such as a pay increase commencing
once the new IEA
days, the employer will need with their employer, and the
to consult with employees employer should ensure they is agreed to, can be helpful
BULK
and obtain their agreement to
BUY
respond in a timely and transparent
manner.
refuse for no other reason than
where an employee appears to
change to the new IEAs.
Employees should always Where an employee unreasonably
refuses to sign an Practica Legal wishes all
to be difficult.
be given sufficient time (at
least a week) to read through updated IEA, it can be useful
Waikato Business News readers
a new IEA and should be
encouraged to seek independ-
to conduct the process at
the time a new term advanous
a safe, happy and prosper-
2017.
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