Hiring staff - procedures and some pitfalls to avoid

By CAITLIN WRIGHT*

Employing staff is necessary for most businesses, large or small.

But regardless of size, all employers must comply with laws on the employment relationship. Outlined below are the three stages of employment and some pitfalls.

Recruiting

Before advertising, consider what gap the business needs to fill. Does it need a part-time, casual, fixed-term or full-time employee?

This is important because it affects the type of employment agreement and its terms.

Advertisements must not discriminate or show an intention to discriminate on any of the prohibited grounds in the Human Rights Act.

Avoid words that exclude certain groups - such as "young" or "mature" - and use gender-neutral language such as "waiting staff" rather than "waitress". The advertisement must be accurate and must not mislead or deceive the public.

Staff selection

Application forms are useful because they provide a written record of the applicant's representations and written consent where necessary. Ask only for information relevant to the job, such as:

* The applicant's employment history and qualifications.

* Whether the applicant can legally work in NZ.

* Names of referees and consent to contact those referees.

* Criminal convictions or pending prosecutions.

* Relevant medical history.

This information is subject to provisions in the Privacy Act.

Once the employee has been selected, the employer must provide him or her with a written employment agreement, assuming the employee is not a party to a collective agreement.

The employer must:

* Give the employee a copy of the intended individual employment agreement (IEA).

* Inform them (in writing) of their right to seek independent advice.

* Give them reasonable time - say, three or four days - to do so.

Fixed-term employees should also be informed that they are required for a fixed term, that their employment will end on a specified date or time or event and the reasons why.

An IEA must specify the names of employee and employer, a description of the work, where it will be performed, the times the employee is to work, wages/salary, a plain-language explanation of the services available for resolving employment relationship problems, including a reference to the 90-day period in which a personal grievance must be raised.

Managing the relationship

There are many employee protections, such as ACC and health and safety legislation.

Various pieces of legislation set out minimum employee entitlements. These depend on an employee's classification - whether casual, fixed-term or permanent. Minimum entitlements include:

* A minimum wage ($8 an hour for over-18s and $6.40 an hour for youths aged 16 and 17).

* Equal pay for both sexes for the same or substantially similar work.

* Three weeks' annual leave.

* Eleven paid public holidays in addition to annual leave.

* Five days' special leave each year, which includes sick, domestic and bereavement leave.

* Payment of wages without deduction (unless you have obtained the employee's consent in writing).

* Up to 52 weeks' parental leave (provided the employee qualifies).

Employers must keep detailed wages and time records and provide immediate access to them on request by the employee.

* Caitlin Wright is a senior solicitor with Chapman Tripp.