Employer Obligations Checklist

Every employer must provide written employment agreements to all employees before they start work, or as soon as possible afterwards. This isn't just a formality—it's a legal requirement that forms the foundation of the employment relationship and protects both parties by clearly setting out terms and conditions.

Your employment agreements must include specific information required by law, including the employee's duties, location of work, hours of work, wage or salary details, leave entitlements, and notice periods for ending employment. The agreement must also include any probationary or trial period provisions, which have strict legal requirements about how they can be used.

Beyond the basic requirements, employment agreements should address your specific business needs while ensuring compliance with minimum employment standards. This includes provisions about confidentiality, intellectual property, restraint of trade clauses, and any industry-specific requirements that apply to your business.

Employers must pay employees at least the minimum wage for all time worked, including training time, travel time between work sites, and time spent on call when required to remain available. Payment must be made in money (not goods or services) and at least fortnightly, unless the employee agrees to monthly payments.

You must maintain accurate records of hours worked, wages paid, leave taken, and deductions made. These records must be kept for at least six years and made available to employees upon request. Payroll errors can result in significant penalties and compensation claims, so robust systems are essential.

Special attention is required for calculating holiday pay, overtime rates, and bonuses and commissions. The Holidays Act has complex calculation requirements that many employers struggle with, and errors can be costly. You must also handle wage deductions carefully, as most deductions require written employee consent.

Under the Health and Safety at Work Act, employers have a primary duty of care to ensure, so far as reasonably practicable, the health and safety of workers and others who could be affected by the work. This is one of your most serious legal obligations, with potential criminal liability for serious breaches.

You must identify workplace hazards, assess risks, and implement appropriate control measures. This includes providing safe systems of work, adequate training and supervision, safe equipment and facilities, and appropriate personal protective equipment. Regular monitoring and review of your health and safety systems is required to ensure they remain effective.

Your obligations extend beyond physical safety to include psychological health and safety, addressing issues like workplace stress, bullying and harassment, and creating a toxic work environment. You must have procedures for reporting and investigating incidents, and for consulting with workers on health and safety matters.

Employers must provide various types of leave as required by law, including annual holidays, sick leave, bereavement leave, and public holidays. Each type of leave has specific entitlement rules, payment requirements, and administrative obligations that must be carefully managed.

Annual holiday entitlements accrue from the first day of employment, and employees can take leave after completing six months of continuous employment. You must encourage employees to take their annual holidays and cannot unreasonably refuse leave requests. Sick leave entitlements begin after six months of employment, and you cannot require medical certificates for absences of three days or less.

Special leave provisions include parental leave, which has complex eligibility and notification requirements, and domestic violence leave for employees affected by domestic violence. You must also accommodate requests for flexible working arrangements, following proper consideration processes.

When addressing employee performance or conduct issues, employers must follow fair and reasonable processes that comply with natural justice principles. This means giving employees proper notice of concerns, a genuine opportunity to respond, and making decisions based on a thorough investigation of the facts.

Your disciplinary process must be proportionate to the seriousness of the issue and consistent with how you've handled similar situations in the past. Employees have the right to representation during disciplinary meetings, and you must consider their explanations and any mitigating factors before making decisions.

For serious misconduct that might result in dismissal, you must conduct a proper workplace investigation and follow a structured process. Even for performance management, you must provide clear expectations, adequate support and training, and reasonable timeframes for improvement before considering dismissal.

The duty of good faith is a fundamental obligation that applies to all aspects of the employment relationship. This means you must be honest, open, and fair in your dealings with employees, and not do anything that undermines the employment relationship or misleads employees about their rights or your intentions.

Good faith requires active communication and consultation with employees about matters that affect them, including changes to terms and conditions, workplace reorganisations, and decisions that might affect their employment security. You must provide employees with information they need to make informed decisions about their employment.

This obligation extends to how you handle grievances and disputes, requiring genuine engagement in problem-solving rather than simply going through the motions. Good faith also means not taking advantage of employees' lack of knowledge about their rights or using your position of power inappropriately.

Employers must ensure their workplace is free from discrimination based on prohibited grounds including sex, race, age, disability, religion, sexual orientation, and other protected characteristics. This obligation covers all aspects of employment from recruitment and selection through to dismissal and everything in between.

You must have policies and procedures to prevent discrimination and sexual harassment, and take prompt action when issues are raised. This includes training managers and supervisors to recognise and address discriminatory behaviour, and creating safe reporting mechanisms for employees.

Discrimination can be direct (treating someone less favourably because of a protected characteristic) or indirect (applying apparently neutral requirements that disadvantage certain groups). You must also provide reasonable accommodations for employees with disabilities and avoid pregnancy discrimination or other forms of unlawful treatment.

Employers must maintain comprehensive employment records for each employee, including employment agreements, wage and time records, leave records, and documentation of any disciplinary actions or performance issues. These records must be kept for at least six years after the employment ends.

Accurate record-keeping is essential for defending against personal grievance claims and demonstrating compliance with employment standards. Your records should include evidence of training provided, safety briefings conducted, performance discussions held, and any workplace incidents or complaints.

You must also maintain records required by other legislation, such as health and safety incident reports, tax and ACC information, and any industry-specific documentation. Employees have rights to access their employment records, so your systems must be organised and accessible while maintaining appropriate confidentiality.

Employers must consult with employees about changes that affect their employment, including workplace reorganisations, changes to terms and conditions, and decisions that might affect job security. This consultation must be genuine and occur before final decisions are made.

The extent of consultation required depends on the significance of the proposed changes and their impact on employees. For major changes like redundancy situations, extensive consultation is required, including consideration of alternatives and employee feedback on proposed processes.

You must also communicate effectively about workplace policies, procedures, and expectations. This includes ensuring employees understand their rights and obligations, know how to raise concerns or complaints, and are kept informed about matters that affect their work environment and job security.

Regular monitoring and review of your employment practices is essential for maintaining compliance and identifying potential issues before they become serious problems. This should include periodic audits of your employment agreements, wage and leave calculations, health and safety systems, and disciplinary procedures.

You should establish systems for staying informed about changes to employment law and assessing how those changes affect your business operations. This might include subscribing to legal updates, attending employment law seminars, or maintaining relationships with employment law specialists.

When compliance issues are identified, you must take prompt corrective action and implement systems to prevent recurrence. This proactive approach not only reduces legal risks but also demonstrates good faith in your employment relationships and can help build trust with your workforce.