Employers have a thousand new reasons to ensure all employment agreements are in writing as of May 6.
Properly documenting all employment agreements has been mandatory since the inception of the Employment Relations Act 2000. However, generally, any business found to have flouted the law had to be taken through the Employment Relations Authority process to be penalised, which is typically time-consuming and involved.
Under a recent law change, failure to provide written employment contracts will bring a $1000 infringement fee. We’re picking this will see more employers stung, because breaches will be dealt with more swiftly and informally through the Labour Inspectorate, rather than the ERA.
It’s worth noting, too, that the $1000 infringement fee is per missing contract – so 10 contracts that aren’t in writing will mean $10,000, up to an aggregate amount of $20,000 in any three-month period.