Why you need to regularly update your employment agreements.

An employment agreement provides the parameters for the relationship between an employer and an employee.  They also determine the rights and obligations of the employee and employer who are parties to that agreement. It is imperative that every employee is provided with an individual or collective employment agreement, whether they are engaged on a casual, part-time, full-time basis.

When considering the contents of an employment agreement, it is important to consider several things, including:

1. The names of the employer and the employee
2. A description of the work to be performed (to make clear what the employee is expected to do)
3. An indication of the place of work
4. Legislation relating to various employment conditions, such as leave and rates of pay
5. The agreed hours or an indication of the hours that the employee will work
6. The wage rate or salary payable (must be equal or greater than the relevant minimum wage) and
7. How the employee will be paid (if the employee won’t be paid in cash, this should be in the employment agreement or must be agreed in writing somewhere else)
8. A plain explanation of how to help resolve employment relationship problems including advice about personal grievances
9. Any other matters agreed on, such as trial periods, probationary arrangements, or availability provisions
10. The nature of the employment if the employment is fixed-term

It is essential that all employment agreements particularly individual agreements are reviewed from time to time to ensure they still reflect the current arrangement in place, and to ensure they meet legislative standards. It is not uncommon for employees to be provided with an employment agreement at the commencement of their employment, which is then not reviewed for several years, or until a significant change in their position has occurred. If employment agreements are not updated, it can cause issues in the event of a dispute and often, it is left to a court to decide what the terms of the agreement are.

It is important to note that where changes to an employment agreement are required, both parties (the employee and employer) must mutually agree on such changes.

If you have any questions relating to employee agreements or policies and procedures for your workplace, contact Matt Cave on 027 202 2652 or [email protected].