Getting your head around agri employment contracts

Whether you’re employing workers on a permanent, fixed term, or casual business, all employees must, by law, have a written individual employment agreement. This includes people like relief milkers who are only on a farm irregularly (casually) or for a set period of time (fixed term).

The agreement must set out the basic terms and conditions of employment, including what each party’s rights and responsibilities are, and what is expected of them. It can also protect both the employer and employee if things don’t work out.

Inclusions

An employment agreement must include the names of the employer and employee, a description of the work, place of work, agreed hours (or indication of the hours of work) and the wages/salary to be paid. The agreement must also comply with the Holidays Act 2003 and explain the process for employment grievances.

Trial periods

Trial periods can only be used by employers with fewer than 20 employees. If there is a trial period in an employment agreement, it should only be for up to 90 days from the start of employment.

If you and the employee agree to a trial period, this must be included in the agreement and signed by the employee before he or she starts any work for you (even 5 minutes after starting has been held by the courts to be too late). This employee must also be a new employee which means he or she must never have worked for you, even on a casual basis, before.

Agreements

Federated Farmers provide an array of employment agreements which can be bought online – permanent and fixed term employment agreements, a casual employment agreement, and a contract milking agreement. These are updated regularly and contain all the essential terms you need in the contract. If you need something more bespoke then your local rural professional (lawyer, accountant, farm consultant) can help you draft an agreement that meets your specific industry/job needs.

Once work has commenced

As an employer you must keep accurate records of hours worked, wages payable (and paid), and leave taken for each employee. You are legally required to keep these records for at least seven years, so it pays to have a good, secure record keeping system.