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continuity of employment

Perhaps you noticed the recent amendments to the ERA included provisions protecting vulnerable employees and thought Part 6A didn’t apply to you because you’re not involved in the cleaning or catering industry. You were only half right.

Subpart 1 of Part 6A provides specific protection for caretakers, laundry staff and orderlies employed in the education, hospital and aviation industries and for cleaners and food caterers employed generally.

Subpart 2 sets out a requirement that, within a specified period of time, the employment contracts of all other employees must contain an employee protection clause. This part of the amendment requires employment contracts to provide protection for employees when their employer’s business is “restructured” (defined in this part of the ERA as sold, transferred or contracted out to another person).

The amendment is immediately effective for collective and individual contracts entered into after 1 December 2004. Contracts already in existence at that date must be varied to comply with the amended ERA by the earliest of 3 dates:- when the contract is next amended; where a business is restructured, before the restructuring; or 1 December 2005.

Remember, penalties for non compliance can be costly. Make sure you seek professional advice. Taking the time to do things properly now will help safeguard you against future difficulties. We can assist you by drafting an employee protection clause specifically tailored to your business and your employees. Our advice is to schedule this into your 2005 plan now. For further advice please contact us at Barbara Buckett and Associates.

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Disclaimer: This article is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication. Please refer to our Legal Notices.

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