Fixed Term Agreements Nz

Temporary agreements are a practical tool for employers who do not need permanent employees, but who require more commitment than a casual worker. The Employment Relations Act 2000 (Law) provides that an employer and a worker may agree that the employment ceases after a specified date or period; or when a specific event appears; or at the end of a particular project. In general, a real reason is a specific project or work that has a defined beginning and end. The traditional reasons may be the introduction of specific software or technology, the termination of client work, or the coverage of another worker on leave (for example. B parental leave). In the case of a temporary agreement setting an end period or date, it is important that the reasons for the temporary agreement correspond to the period/maturity. For example, an employer should be able to explain why the agreement is exactly one year instead of 11 months or 15 months. As a general rule, where there are real reasons for a fixed-term agreement, the employment ends because of a project or event, not a specific date. Many fixed-term contracts are not valid. Under Section 66 of the Employment Relations Act 2000, the employer must have a particular reason for a fixed-term contract.

An example of a valid and specific reason would be that your employer wins a tender for the sale of ice cream in Mission Bay from December 1 to February 28 and they want to employ you for that three-month period. If a temporary position is real, the ERDF requires that the reason be indicated in writing and that the end of the position be also identified in writing: but the use of a fixed-term contract to decide whether a person is fit to play a role is illegal. Instead, Wendy, as a company employing 19 people or less, could offer an indeterminate contract and include a trial period. If she does, Wendy must remember: use our new employment contract builder (external link) to establish a correct temporary agreement, including with space to enter a detailed reason for the end of the fixed term. Here are two examples: a fixed-term contract must indicate the start and end date of the period of employment. It must also clearly state the real reason for the temporary hiring of the worker. In one recent case, a well-known television presenter signed a one-year fixed-term contract with TVNZ, for which the host would receive $450,000. It is unacceptable to use a temporary agreement as a means of a trial period (or trial period) to verify the suitability of a new worker. For these reasons, employers are not allowed to hire for a limited time for applicants who apply for or hold a temporary visa. There may be a temptation for companies to associate temporary work with external financing – for example. B a contract or a public subsidy.

Employers cannot use a temporary agreement to exclude or restrict a worker`s rights under the Labour Relations Act 2000, to justify the worker`s ability to hold permanent employment or to circumvent the rights of the Holidays Act 2003. Fixed-term contract workers are not contractors – they are employed in your home and are entitled to the same benefits as a permanent worker.