Employers Required to Retain Signed Copy of Employment Agreements

From 1 July 2011, employers are required to retain a signed copy of the employment agreement or the current terms and conditions of employment.

The employer must retain the “intended agreement” even if the employee has not signed it. Employees are entitled to a copy on request.  Failure to do so can result in a Labour Inspector applying to the Employment Relations Authority to impose a penalty.

And Labour Inspectors have been given the power to apply to the Employment Relations Authority to impose a penalty against an employer who provides a defective employment.

The penalties were increased on 1st April to up to $20,000

SUMMARY OF THE KEY REQUIREMENTS:

• When you are offering an intended employment agreement (including a variation to an existing employment agreement) to an employee, or candidate for a position you must  at least do the following things:
  1. provide to the employee/candidate a copy of the intended agreement under discussion; and
  2. advise the employee/candidate that he or she is entitled to seek independent advice about the intended agreement; and
  3. give the employee/candidate  a reasonable opportunity to seek that advice; and
  4. consider any issues that the employee raises and respond to them.

If you do not comply, the employer is liable to a penalty imposed by the Authority.

• You must retain a copy of individual employment agreements or individual terms and conditions, and any intended employment agreement, even if unsigned/not agreed
• If requested by the employee, the employer must, as soon as is reasonably practicable, provide the employee with a copy 
• If the employer fails to comply the Labour Inspector can apply for a penalty to be imposed by the Authority. Before bringing such action the Labour Inspector must give the employer written notice, and 7 days to remedy the breach
• An intended agreement must not be treated as the employee's employment agreement if the employee has not signed the intended agreement; or agreed to any of the terms 

The employment agreement MUST contain the following terms:

1. the names of the employee and employer; and
2. a description of the work to be performed by the employee; and
3. an indication of where the employee is to perform the work; and
4. an indication of the arrangements relating to the times the employee is to work; and
5. the wages or salary payable to the employee; and
6. a plain language explanation of the services available for the resolution of employment relationship problems, including a reference to the period of 90 days in which a personal grievance must be raised.
7. The agreement must also contain a statement that payment for work on a public holiday will be paid at not less than time and a half of relevant daily pay**
8. An employee protection provision dealing with what happens in the event of the sale  or transfer of all or part of the business**

The Labour Inspector can apply to the Authority to impose a penalty if your employment agreement is defective.

** although the items in italics are not within the same provision.