Recent cases brought to light by the Employment Relations Authority (ERA) have again demonstrated the importance of having your staff on the right type of individual employment agreements (IEA), and the costly consequence of an incorrect classification.
There are three primary classifications for employees; Permanent, Fixed Term and Casual, and there are variances in some of the clauses within the applicable employment agreement.
Permanent employees make up the bulk of the workforce, and they are typically people who have set hours of work (either part-time or full-time) with the expectation their employment is ongoing for the foreseeable future.
Those that are only employed for a finite period, such as to cover maternity leave, provide resource for a specific project, or cover a busy seasonal period are classed as Fixed Term Employees.
And those that are called upon on an ad hoc basis, as and when required, are genuine Casual employees who have no routine or regularity to their work pattern.
The NZ employment legislative requirements for annual holidays, public holidays and sick leave and bereavement leave vary depending on the nature of the employment relationship, which is why it is so important to get it right when creating employment agreements for NZ employees.
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Tags: employment agreements