Employing whanau? Get the processes right…

It is compulsory to have a written employment agreement for all employees.  It is just as important to have the paperwork in place for whanau members as a recent example highlights.

The employer had a brother who was short of work so to offer whanau support he took him on to do odd jobs around the business.  As he was a whanau member the employer was lax with getting the paperwork done.  In due course the employer’s brother had an argument with the employer’s wife and there was a parting of the ways.

The two brothers had agreed that the relationship would be as an independent contractor.  After the bust up the brother claimed he was an employee and claimed for unpaid wages.

The Employment Relations Authority found that the brother was a contractor.  On appeal the Employment Court held that he was an employee and awarded compensation. Employers can also be hit with awards of compensation for any hurt and humiliation suffered (usually several thousand dollars) plus a penalty for not having an employment agreement.

So even if you are taking on a whanau member make sure you get the paperwork right and get agreements in writing and witnessed to minimise later arguments should there be a disagreement. 

If you need help getting the paperwork right give me a call on (04) 473 6850.

 

Alan Knowsley