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Employment Agreements – Talk To The Experts – Grow Human Resources

November 4th, 2010

I have recently identified an area of risk for some of my business clients in that many do not have Employment Agreements in place.

The Employment Relations Act requires written employment agreements (individual or collective) to be provided by an employer prior to an employee commencing work.

Grow Human Resources, a Hawkes Bay human resources company who provide the full range of employment solutions and advice for employers advise failure to have agreements in place could incur a penalty of up to $10,000.00, although such severe penalties are not typically awarded.

More importantly, GrowHR counsel that the absence of an employment agreement can translate into a ‘silent stance’ in a number of common situations. This can have negative (and expensive) consequences down the track if the business ever needed to restructure its operations or a dispute arose between the employee and employer.

Not only does a written employment agreement put employers on the right side of the law, it also protects the employer’s interests and removes confusion between the parties.

Often business owners try to save a few dollars by going online to develop their own or copy another organisation’s agreement from templates.

GrowHR would strongly recommend against this as these agreements tend not to allow for significant managerial prerogative and often contain inappropriate clauses which may create unnecessary costs to an employer.

A few hundred dollars spent on an employment agreement is far less costly than the stress and headache further down the line.

Grow Human Resources can provide employers with employment agreements for a very reasonable price. Phone Murray or Melissa if you don’t have employment agreements in place for your employees.

Grow Human Resources
06 878 5454
www.growhr.co.nz

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