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Unsigned fixed term agreement not effective…
The Employment Relations Authority has upheld a personal grievance for unjustified dismissal.
The employer sought to rely on a fixed term in the employment agreement. The ERA held that the employee had never been provided with the employment agreement before he was dismissed and therefore the fixed term was not effective.
As a result there was no proper process followed, and the employee was entitled to $4,800 for lost wages, $3,500 compensation and $1,000 towards costs.
For a fixed term to be lawful the employee must have agreed to it in writing before commencing work. The employer’s failure to get its paperwork in order will be an expensive lesson.
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