Chapter 23.2Chapter 23.2

An Individual An Individual Employment Employment AgreementAgreement

The clauses found in a typical individual employment agreement

The minimum content as specified in s65 Employment Relations Act 2000

the names of the employee and employer concerned; and

a description of the work to be performed by the employee; and

an indication of where the employee is to perform the work; and

an indication of the arrangements relating to the times the employee is to work; and

the wages or salary payable to the employee; and

a plain language explanation of the services available for the resolution of employment relationship problems, including a reference to the period of 90 days in s114 within which a personal grievance must be raised.

Other matters that are generally included:

Termination – how the agreement may be ended

Redundancy

Holiday entitlements including sick leave provisions

Health & safety

Confidentiality

Conflicts of interest

Performance reviews

Restraint of trade clauses

The agreement represents the entire contract between the parties

The names of the employee and employer concerned

Points to look for:

• Who is the employer – is it “the boss” or is it a company which

the boss owns.

The position

Points to look for:

• This describes the position, which may be important in terms of status and duties.

• It should match the description in any advertisement for the position.

The duties - What is the employee required to do as an employee?

Points to look for:

The duties are often contained in a separate job description.

The employee should make sure that the duties and the job title, as it was advertised, match.

Most contracts have a proviso to the duties clause which says that the employee may be asked to perform other duties from time to time as required by the employer.

An indication of where the work is to be performed

Points to look for:

• Where there are multiple sites in different centres or the duties are those of a travelling sales representative.

The times at which the work is to be performed

Points to look for:

• The employee must be given some idea of when the work is to be done.

• Is the employee "on call" and is weekend work required?

The term - individual employment agreements

Points to look for:

• Is it a permanent position that is, no finish date?

• If there is a finish date, is it fixed or does it depend on some event, e.g. the return of another employee or the completion of a specific task?

• It is temporary how does the employee justify not making it permanent?

Remuneration and benefits

This is what the employee is paid for doing the job

Points to look for:

• The employee should understand the basis on which the employee wage or salary payments are calculated.

• The employee should know what they will be getting for their first pay.

• In the case of part time and casual employees, does the pay rate include holiday pay?

A plain language explanation of the services available for the resolution of employment relationship problems

Points to look for:

• It must include a reference to the period of 90 days in section 114 within which a personal grievance must be raised.

Termination –

How can the employee or the employer bring the contract to an end?

Points to look for:

• How much notice is required to terminate the contract. The Employment Relations Authority can impose a penalty on employees who leave without giving proper notice.

Redundancy –

Points to look for:

• How is redundancy to be identified?

• What consultation procedures are there?.

• Is there provision for the payment of redundancy compensation?

Holiday entitlements –

Points to look for:

• How much paid leave including annual holidays is there?

• Are there any provisions relating to statutory holidays?

• Are there any restrictions on when leave may be taken?

• What is the entitlement to sick leave?.

Health and safety –

Points to look for:

• Clauses that emphasise the employees’ responsibility for their own and their colleagues’ safety.

Confidentiality –

Points to look for:

• The duty to keep the employer’s affairs confidential.

• The duty to keep clients’ affairs confidential when the employer’s business includes the collection of personal information.

Conflicts of interest–

Points to look for:

• In essence, how much control does the employer wish to impose on the employee’s out of work activitites?

Performance reviews –

Points to look for

• Does the performance review affect salary or wage rates?

• When are the reviews to take place?.

Restraint of trade clauses –

Points to look for:

• How long is the restraint for?

• To what activities does it apply?

• Over what geographical area does the restriction extent?.

The agreement represents the entire contract between the parties –

Points to look for:

• Make sure that the the agreement accurately records what was agreed when the job offer was made.