[RamblingPaddies]

hi folks
i'm looking over a contract sent to me by my )hopefully) future employer and along with a job offer everything looks in good shape ...
just a few quirks about the contract have raised a few eyebrows

i'd be grateful for opinions ...

the first one is that if my employment comes to an end for whatever reason, i cannot work in another "rival" company within a 5km radius for 6 months ... now given we are coming from the other side of the world this would mean that we'd pretty much have to leave the city we arrived in, to secure further work. all the similar IT companies are in this city's CDB

the second is that it says "after 12 months" the employee is entitled to 4 weeks annual leave ... what about the first 12 ? is it a given that I get less in the first 12 months ? or none at all ?

also there is no mention of health cover etc. do NZ companies usually cover this as in Ireland/UK or is private health insurance not done in NZ ?

also i need to clear up the fact that the contract states you may be asked to work overtime for no remittance ... is this usual ?

thanks all

[ourquest]

In principle your prospective employer will probably cover themselves as much as they can in the contract, unless you reject some of the clauses in which case they will probably agree to them being changed.

Your first concern seems to be a reasonable one, and although the clause is in there for obvious reasons (for the employer) I think I would insist on its removal. I would prefer to negotiate that one out rather than negotiate a salary up, for example, and the employer surely expects some negotiation prior to acceptance.

I think it isn't uncommon not to get leave in the first year. Sounds like the contract provides for none.

From what I understand private health insurance is available in NZ but not particularly expensive (as a resident- not sure as a temporary permit holder), so is not really a deal breaker in a contract. This works both ways and they might consider it if you ask them to make provision?

Again, regarding the overtime, either get the clause removed or at least put a ceiling on the amount of overtime, so that there is no ambiguity and you have some recourse if the employer abuses the clause.

All my opinion only. Good luck with the negotiation and the new job if you take it.:) :nice1

[MaxG]

the second is that it says "after 12 months" the employee is entitled to 4 weeks annual leave ... what about the first 12 ? is it a given that I get less in the first 12 months ? or none at all ?

The four weeks leave after one year is, I think, a legal requirement (it used to be three weeks till recently). In the first year I suspect you will accumulate leave entitlement on a pro-rata basis. Check that this is the case (it certainly is for me).

[neilw71]

the first one is that if my employment comes to an end for whatever reason, i cannot work in another "rival" company within a 5km radius for 6 months

Standard protection for the employer - why allow you to learn all the contacts and IP of their business and walk around the corner to their competitor and take that knowledge with you? Definitely negotiable though

the second is that it says "after 12 months" the employee is entitled to 4 weeks annual leave ... what about the first 12 ? is it a given that I get less in the first 12 months ? or none at all ?

Standard - most companies will let you take holiday in lieu during the first year. Just means you go into a negative balance during that first year. A lot of people will not take any hols in the first year of a job to build up the full entitlement

also there is no mention of health cover etc. do NZ companies usually cover this as in Ireland/UK or is private health insurance not done in NZ ?

Not common - totally dependent on the company - if it was not offered in the package, then doubtful they even offer it - worth asking though. They may have a deal with Southern Cross (or similar) for discounted cover.

also i need to clear up the fact that the contract states you may be asked to work overtime for no remittance ... is this usual ?

He he...welcome to NZ! As they say here "harden up" :)

NZ is not the same as Europe and employment conditions are not generally as good. It really depends on the company though, as some (mine included) offer much more than I ever experienced in the UK!

Neil

[RamblingPaddies]

The four weeks leave after one year is, I think, a legal requirement (it used to be three weeks till recently). In the first year I suspect you will accumulate leave entitlement on a pro-rata basis. Check that this is the case (it certainly is for me).

yeah that was what first sprung to mind with me MaxG - pro rata - i've never heard of a job without ANY leave in the first 12 months ...

do you reckon they would budge on the "competition" clause ? i mean i can understand where they are coming from but if I came at it from a point of view of wanting to be with them for a period of years then hopefully they might take it out ... it would mean leaving the city (Tauranga)

[incredible hulse]

hi folks

the first one is that if my employment comes to an end for whatever reason, i cannot work in another "rival" company within a 5km radius for 6 months ... now given we are coming from the other side of the world this would mean that we'd pretty much have to leave the city we arrived in, to secure further work. all the similar IT companies are in this city's CDB



Used to see similar in UK (although typically working for competitor rather than geographic). Typically were not enforceable as seen as a restraint of trade - not sure if NZ would see similar but law is based on UK law so fair chance

[jubjub]

Restrictive terms of trade such as not being able to work for another employer within 5km, are common, but in practice are pretty much unenforceable if it stops you earning a living in your trade. Was common in UK contracts too. My old company tried to enforce it and failed miserably! although if they find you on site with a client from your old company, then you are potentially in the doo-daa for poaching clients....

The 12 month holiday thing is common too. Depends on the company whether they let you take pro rata in the first year, or make you wait before you can take them. Current contract for DH says he accrues from day1, but cant take any for 6 months. Its just down to the company whether they will let you take an unpaid day or let you go into a - figure if you need a day.

With the overtime thing, thats been in every contract either of us have ever had.... only two of DH contracts have ever had paid overtime. guess it depends on your trade to a certain degree. (this is both UK and NZ)

[markw55]

Some comments from an HR Professional:

The restraint of trade clause is going to be tricky for the employer to enforce - but you should in good faith go along with it or negotiate it away. Most employers in NZ have considerable difficulty in making restraint of trade clauses stick, but people who have broken them have found it can have consequences for their reputation.

4 weeks holiday after 12 months is a legal requirement under the 2003 Holidays Act - this is the standard wording on every employment agreement 'cos of the act.

As has been already said most employers allow you to take leave before the 12 months is up. How it works is: over the course of the year you earn a little leave each month, then after 12 months you become entitled to take the full 4 weeks leave. Under the act until you have worked 12 months you cannot demand leave but as soon as you have reached 12 months of service you become entitled to it.

For example: If, after six months, you wanted to take 2 weeks leave most employers will let you as you have accrued it. After 12 months you are then able to take two weeks leave (4 weeks entitlement less the two weeks you have already taken).

Also, the four weeks leave is over and above statuary holidays. There are 11 public holiday days which every NZer is entitled to:
Christmas day, boxing day, 1 jan, 2 jan, Labour day, Queen's Birthday, Anzac day, waitangi day, anniversary day of the region you live in, easter friday and good monday.

When Anzac day or waitangi day fall on a weekend you might not get them as they are not 'mondayised'. Other holidays that fall on a weekend are shifted to the following Monday.

Welcome to the wonderful world of NZ holiday's legislation.

Mark

[Jo Jo]

4 weeks holiday after 12 months is a legal requirement under the 2003 Holidays Act - this is the standard wording on every employment agreement 'cos of the act.

As has been already said most employers allow you to take leave before the 12 months is up. How it works is: over the course of the year you earn a little leave each month, then after 12 months you become entitled to take the full 4 weeks leave. Under the act until you have worked 12 months you cannot demand leave but as soon as you have reached 12 months of service you become entitled to it.

If I were the OP, I would ask my contract to be changed so it clearly states that I am entitled to accrue holiday in the first year.

The Department of Labour website has some suggestions for wording for Employment Agreements where the employer allows annual leave to be accrued in the first 12 months, one of which is:

Short Form Clause on Annual Leave which is more favourable than the entitlement in the Holidays Act

The Employee shall be entitled to paid annual leave as set out in this clause. This clause is in substitution for and not in addition to the entitlements in the Holidays Act:

(i) The Employee shall be entitled to [insert number] weeks annual leave per year;

(ii) The Employee's entitlement shall accrue on a pro-rata basis during each month of their employment from the first day of their employment.

The others can be found here: http://www.ers.dol.govt.nz/relationships/builder/guideclause.asp