Dealing with Employees

We know trade businesses want to ensure they are adequately covered in terms of their obligations under contracts they enter into, employment law compliance and health and safety obligations.

Our suite of fact sheets provide plain English guidelines for dealing with a range of employment issues that trade businesses encounter daily.

If your business needs further assistance the team at Tradie Law is here to help.

The Key Requirements for a Successful Employment Relationship

Most trade businesses in New Zealand have employees. For many trade businesses the cost of employees is the greatest expense outside of plant, equipment, and premises. While this is well known, employment relationships and compliance are often seen as too difficult or a task that only gets actioned when time permits.

Employment law in New Zealand has become prescriptive and involved since the days of the “hand shake” employment agreement and quick chat to resolve disciplinary matters.

1. Individual Employment Agreement

Under the Employment Relations Act 2000 (“ERA”) every employment relationship should have a written individual employment agreement. At a minimum every individual employment agreement should cover:

• The names of the employee and employer;
• A description of the work to be performed by employee;
• An indication of where the employee is to perform the work;
• Any agreed hours of work;
• The wages or salary payable to the employee and how it will be paid;
• The employee’s entitlement to four weeks of paid annual holiday per year, public holidays, parental, sick, bereavement and family violence leave;
• Any other matters agreed on, for example probationary and trial periods, or availability provisions;
• If the nature of the employment is fixed term, the reason for the fixed term and how the employment will end;
• A plain explanation of the services available for resolving employment relationship problems, including a reference to the period of 90 days in section 114 within which a personal grievance must be raised.

Many trade businesses’ existing employment agreements may not be fit for purpose as they do not cover the minimum requirements under the ERA. To ensure your businesses’ employment relationships are based on compliant employment agreements when an issue arises, we recommend reviewing your employment agreements annually and communicating any updates to your employees.

2. Policies

Workplace policies complement a business’s employment agreement with its employees. Policies can be developed and introduced as your business develops or legislative changes require new processes and policies to be put in place. Most employment agreements refer to policies and confirm that the employee agrees to comply with these. New policies should be introduced in consultation with staff to ensure they have been made aware of the policies introduction and its requirements.

3. Legislation engaged in Employment Relationships

Once an employment relationship commences, other pieces of legislation come into play, such as the Holidays Act 2003, the Health and Safety at Work Act 2015, Minimum Wage Act 1983 and the Privacy Act 2020.

A trade business must ensure the Health and Safety of its employees. Ensuring compliance with minimum employment law requirements in the ERA and these pieces of legislation can be time consuming. For many trade businesses Health and Safety obligations are onerous, whilst penalties for breaching the Health and Safety at Work Act 2015 can be significant. To avoid liability on officers of a trade business or its workers, robust adherence to the duties set out under the Act is required. This is achieved in part with training, strong Health and Safety processes and fit for purpose policies.

4. Bumps in the Employment Relationship

Not all employment relationships run smoothly or as intended. An employer and employee must be active and constructive in establishing and maintaining a productive employment relationship - communication is key. Occasionally it may be necessary to look into an employee’s conduct to establish if misconduct or serious misconduct may have occurred.

Where these situations arise a measured approach is required. Do not pre-determine the matter; take the time to look into the issues raised and follow a fair process (set out in your individual employment agreement and disciplinary policy). All employers should, and indeed are advised to follow a fair and reasonable investigation process.

5. Workplace Investigations

Occasionally your business may need assistance with undertaking a work place investigation. It is common for an independent investigator be engaged where conflicts of interest may arise or the employer wants to ensure the investigation is undertaken under best practice and on an impartial basis.

How we can help?

At Tradie Law we are experts in all aspects of employment relationship and health and safety law, from clear plain English individual employment agreements and policies, to dealing with employment relationship problems such as personal grievances and work place investigations.

We can help you with:

• Individual Employment Agreements;
• Independent Contractor Agreements;
• Preparation of Policies, including Disciplinary, Health & Safety, Drug and Alcohol, Vehicle, Use of Company Credit Card and Trade Account Usage;
• Recruitment, vetting processes and trial/probationary period provisions;
• Taking on an apprentice and matters to cover off;
• Addressing employment relationship problems including personal grievances;
• Assisting with and undertaking work place disciplinary, medical incapacity, incompatibility investigations.

We offer an all-inclusive Employment Legal Package that covers all your bases, ensuring you have the legal protection and guidance you need to thrive in your business. For more information about our Employment Package, use the button below:

Employment Package

Additionally, our Restructuring Package gives you all the tools to follow a fair and reasonable process when undertaking a business restructuring and reaching a decision that withstands scrutiny if an employee challenges a redundancy by way of termination. For more information about our Restructuring Package, use the button below: 

Restructuring Package

For further advice contact us at Tradie Law to discuss your issue and how we can best help you.