Edwards Sluiters Reminds Employers: Get Holiday Staffing Right with the Correct Employment Agreements
As the holiday season approaches, many New Zealand businesses prepare to take on extra staff to manage increased customer demand or cover for employees on annual leave. However, employment law specialists Edwards Sluiters are reminding employers that engaging additional workers under the correct employment agreements is crucial to avoid unnecessary risk and potential disputes down the track.
“Employers often run into issues because they haven’t used the right employment agreement for temporary or casual staff,” says Sheridan Climo, an Employment Lawyer with Edwards Sluiters. “Getting employment agreements right at the start can save significant time and cost later.”
Casual vs Fixed Term Employment – A Common Holiday Season Mistake
Each year, Edwards Sluiters sees the same issue arise as businesses prepare for the festive rush: employers assume that casual employment agreements automatically suit all seasonal workers.
“It’s not unusual for employers to think a casual agreement covers anyone hired temporarily,” says Sheridan. “However, that assumption can lead to significant problems - because in some cases, a so-called casual employee may actually be considered permanent by the Employment Relations Authority or the Employment Court.”
A casual employee works on an “as and when needed” basis with no fixed hours or expectation of ongoing work. Yet, when those staff members begin working regular shifts or fall into a predictable pattern, their status can quickly change. “At that point, the arrangement can be viewed as permanent employment,” she explains. “If the job ends suddenly, the worker could claim unjustified dismissal.”
By contrast, a fixed-term agreement sets out a clear start and finish - for example, to provide cover during the Christmas period - and is underpinned by a genuine, time-limited reason. These contracts give both employer and employee certainty about hours and expectations. Employers may even include a short trial period (if the person hasn’t worked for them before) to ensure the right fit.
“Choosing the correct type of agreement isn’t just a formality,” Sheridan adds. “It’s an important safeguard for your business.”
Avoiding Common Pitfalls
A key reminder for employers is to monitor end dates carefully.
“If a fixed term employee continues working beyond the specified end date, their employment may automatically convert to permanent,” explains Sheridan. That means their employment will carry on indefinitely after the holiday period, which the business may not have intended for.
Likewise, businesses should be cautious about how long casual engagements last. If a casual employee works regular hours for several weeks, that arrangement may be challenged as a permanent role.
About Edwards Sluiters
With offices in Auckland, Hamilton, Tauranga, Hawke’s Bay, and Christchurch, Edwards Sluiters Employment Lawyers offers specialist advice nationwide.