Employment Agreement Builder in New Zealand: A Comprehensive Guide
The process of hiring a new employee can be a complicated and daunting task. One of the most important steps of this process is drafting an employment agreement, also known as a contract of employment, which outlines the terms and conditions of the employment relationship between the employer and employee.
In New Zealand, an employment agreement must comply with the provisions set out in the Employment Relations Act 2000, which governs the employment relationships of most employees in the country. Employers must ensure that their employment agreements are legally compliant and accurately reflect the terms of the employment relationship.
To help employers with this task, the Employment Agreement Builder is a valuable tool designed to assist in creating a legally binding employment agreement. This tool is available on the website of the Ministry of Business, Innovation and Employment (MBIE).
What is the Employment Agreement Builder?
The Employment Agreement Builder is a free online tool provided by the MBIE. It allows employers to create an employment agreement tailored to their specific needs, using a step-by-step process that prompts them to provide information such as job description, pay rate, hours of work, leave entitlements, and other terms and conditions of employment.
The tool also includes options for adding clauses that are required by law, such as those relating to trial periods, rest breaks, and public holidays. Once completed, the employment agreement can be downloaded as a PDF document, ready to be signed by the employer and employee.
Why Use the Employment Agreement Builder?
One of the main advantages of the Employment Agreement Builder is that it ensures compliance with the Employment Relations Act 2000. The tool guides employers through the process of creating an employment agreement that meets the legal requirements for content and formatting, which can save them time, money, and potential legal disputes.
In addition, the Employment Agreement Builder allows employers to include specific terms and conditions that are relevant to their business and the position they are offering. This can help to clarify expectations and prevent misunderstandings between the employer and employee.
Another benefit of the Employment Agreement Builder is that it provides employers with a professional and consistent document to present to their new employee. This can help to establish a positive and professional working relationship from the outset, which is beneficial to both parties.
Limitations of the Employment Agreement Builder
While the Employment Agreement Builder is a useful tool, it does have some limitations. For example, it is not designed to cater for all situations or circumstances that may arise in an employment relationship. Employers may need to seek legal advice if they require clauses that are not covered by the tool.
In addition, the Employment Agreement Builder does not take into account the individual needs or preferences of the employer or employee. Employers should consider their own business requirements and values when using the tool to ensure that the employment agreement accurately reflects their needs.
Conclusion
The Employment Agreement Builder is a valuable tool for employers in New Zealand. It simplifies and streamlines the process of creating a legally binding employment agreement that meets the requirements of the Employment Relations Act 2000.
Employers can use this tool to create an employment agreement that is tailored to their specific needs, providing clarity and transparency to the employment relationship. While the Employment Agreement Builder does have some limitations, it is a valuable resource for employers seeking to establish professional and effective employment relationships with their staff.