By GEORGINA BOND
Most small businesses don't have written employment contracts for their staff, an Auckland Chamber of Commerce survey shows.
Of the 350 businesses that responded to last month's Feedback for Government Survey, 30 per cent said they did not have staff contracts in place.
But for small to medium enterprises (SMEs),
the number was much higher at 65 per cent.
Chamber chief executive Michael Barnett said the results were surprising and the high number was a worry. "In the past, the evidence of this has been anecdotal, but this shows us the extent of it."
The most common reasons given for not having a written contract included:
* Staff were family or friends.
* Staff were all part-time.
* The company used only subcontractors.
* The employees were also shareholders.
* No difficulties in this area had been experienced.
* A preference to act in good faith.
* The company was still getting around to it.
Barnett said the absence of a contract meant the business could strike difficulties if a dispute arose as there was no common ground to return to.
The fact that SMEs often lacked a human resource department should not be a reason to overlook employment contracts.
Examples of basic contracts could be downloaded from the websites of the chamber or the Labour Department.
