Get Order into your Employment Agreements

Many small businesses and farms are getting penalised for using the wrong employment agreements for their workers or having no employment agreement in place at all.

Labour inspectors who were previously lenient with small businesses who were getting it wrong, now appear to be taking a firmer stand and expect that through the education and the information available to them employers should now be getting it right in the first instance.

Casual employment often leads to permanent employment without the employer or the employee realising. But if the employee does realise and complains, then the employer could be up for some hefty fines and penalties, and may also be required to pay holiday pay all over again despite having already paid 8% to the employee in each pay.

Understanding when to use a casual employment agreement as opposed to a permanent one confuses many employers and is a trap easily walked. You need to be constantly reviewing your agreements and the employees’ work schedules to determine whether they are truly casual workers or are really operating as a permanent employee.

Remember that courts can go back up to 6 years when determining a wage arrears issue for an employee, so it is also important to keep accurate payroll records. If an employer can’t provide wage records the Court will rule in favour of the employee’s claim. An added kick is that they can also award interest on that money. If you are unsure of the status of your employee give us a call and we will be happy to talk through your particular situation.