Department of Labour welcomes Federated Farmers' initiative on employment agreements

The Department of Labour has welcomed Federated Farmers’ initiative to encourage its members to have written employment agreements with their employees, says Craig Smith, the Department’s Chief Adviser for Employment Relationships.

“When people start a new job they want it to work out and so does their employer. They often don’t think of what might happen if problems arise. If there is a problem, employers and employees might have a different view than their employer of what they agreed at the outset. It is a lot easier to resolve problems if things are written down. Not having a written agreement can lead to frustration, aggravation and a lot of expense for both sides.”

Mr Smith was commenting on the Federated Farmers/Rabobank Farm Employment Remuneration Report which shows that 24% of farm businesses do not use written employment agreements, even though written employment agreements are a legal requirement.

“It is likely that this situation is not confined to farming,” says Mr Smith. “Many employers and employees in other sectors are leaving themselves in a vulnerable position if they do not have written employment agreements. With nothing in writing, differences may occur about terms and conditions of employment, with resolutions more difficult to achieve. Federated Farmers is showing real leadership in tackling this issue.”

Mr Smith says the Department of Labour has designed an employment agreement tool that enables employers or employees build their own employment agreements that fulfil all legal requirements. The tool can be found at http://ers.govt.nz/EmploymentAgreementBuilder/builder/Default.aspx