part 1: pre-recruitment considerations
introduction
Many organisations start life with an all-volunteer base and then employ paid workers as activities increase, needs grow or resources emerge. Taking on people for the first time or adding paid workers to your volunteer base should be considered carefully.
This section on employment is divided into two parts:
words used
Throughout this section the words "recruitment" or "recruiting" or "recruit" are often used. These are loose terms that are meant to describe both the acts of bringing volunteers on board your organisation and hiring paid workers.
The term "employer" is also used in a general way to refer to the person or persons within an organisation responsible for managing workers — paid and unpaid.
Pre-recruitment checklist
Before recruiting, ensure that you have thought about and can satisfactorily answer the following questions (some of which are covered in more detail below):
- What kind of work do you want done? Do you really need to recruit someone or can the work be done using existing people?
- Can the work be done by recruiting more volunteers rather than paid workers?
- What costs are involved in recruiting a worker e.g. a salary, on-going training?
- What are the potential impacts recruitment might have on your organisation e.g. the impact paid workers may have on volunteers?
- Do you know your legal obligations as an employer?
- Are you familiar with the other general obligations involved in being a good employer e.g. how to provide proper induction and manage disputes etc?
- What are the different employment options available to you e.g. volunteers, fixed-term or permanent employees, independent contractors, student placements, internships, trainees?
- Are there good financial and administration systems in place?
- Is there a finance/funding plan in place?
- Are there members of the group who can provide support and supervision for a worker?
- What work environment will be provided for the worker e.g. office space?
- What equipment will the worker require to do the job?
- What human resource policies and procedures are in place?
budgeting for recruitment
Before an organisation considers recruiting, a preliminary budget should be drawn up, which includes the:
Initial costs of —
- advertising
- labour — the organisation's time plus any paid interviewers etc
- vehicle running — the person's own or the organisation's car
- travel — if the organisation pays applicants to travel
- accommodation — for applicants from out of town
- incidentals e.g. photocopying, postage, toll calls
- major purchases — office furniture, stationery, a vehicle for the worker
- other equipment.
Ongoing costs of —
- salaries (including PAYE, ACC levies, holiday pay, increments, perhaps bonuses)
- relieving staff to cover for illness and leave entitlements of worker
- training and personal development (PD)
- vehicle running
- tea/coffee
- project funding — materials, advertising, postage etc
- phone, power, rent
- repair and maintenance of equipment
- travel — air fares etc
- fees for support networks and/or supervision.
Tip
Most of these costs will apply whether the worker is a paid employee or volunteer. Think about how such on-going costs will be funded.
human resource policies and procedures
Another part of preparing for recruitment is making sure that you have your human resource policies and procedures in place (see also Section 5 — Policies). Up-to-date, clear policies and procedures on recruitment and staffing make the hiring process straightforward and less time-consuming. Policies on e.g. probation (trial periods), employee orientation, workplace health and safety, and training and development etc clarify what management and employees expect of each other. Human resource policies are also a great source of information for a new worker.
legal obligations
Acts applying to people in your organisation
Finally, before recruiting, it's advisable to be aware of the legislation applying to people in your organisation and how to comply with it. Consider your legal obligations towards these workers as a good "employer" and your potential liability for their actions.
You will need to consider whether you want employees, volunteers or independent contractors working for your organisation, because the obligations you will owe to each of them are significantly different. You will generally have more legal obligations towards paid employees.
The following table lists and briefly describes the main Acts that are currently relevant to any employer. It pays to be familiar with the full details of these Acts which, as a group, represent employment law in New Zealand. But, remember that the law changes so it's a good idea to visit www.keepingitlegal.net.nz for the latest updates on these Acts.
| Act Name |
Act Applies To |
Details |
|
Criminal Records (Clean Slate) Act 2004 |
- employees1
- volunteers
- contractors
- job applicants
|
Under this Act, an individual who has a minor conviction and has not re-offended for 7 years, does not have to declare this information in most circumstances. |
|
Employment Relations Act 2000 (replaced the Employment Contracts Act 1991) (see also separate section below) |
|
This Act requires employees and employers to deal with each other in good faith and not to do anything that would, or would be likely to, mislead or deceive each other, whether directly or indirectly. |
|
Equal Pay Act 1972 |
|
This Act prohibits employers from differentiating between employees solely on the basis of sex in areas such as conditions of work, fringe benefits and training opportunities, promotion and transfer. |
|
Health and Safety in Employment Act 1992 |
- employees
- volunteers who work on an ongoing and regular basis as an integral part of the business
|
The main aim of this Act is to "provide for the preventions of harm to employees at work". |
|
Holidays Act 2003 |
|
This Act sets out employees' entitlements to holidays and holiday pay. The Act also covers employers' obligations in relation to the timing of annual leave and calculating holiday pay. |
|
Human Rights Act 1993 |
- employees
- job applicants
- volunteers
- contractors
|
This Act prohibits discrimination on certain grounds. |
|
Immigration Act 1987 |
|
Under this Act, all employers must ensure that tax code forms completed by employees include a signed declaration that the employee is entitled to work for the employer. Non-residents require a work permit to work in New Zealand. |
|
Minimum Wage Act 1983 |
- employees
- trainees (in part)
|
This Act sets minimum wages for employees, the rate depending on the employee's age. The youth minimum wage also applies to trainees enrolled in industry training programmes. |
|
Parental Leave and Employment Protection Act 1987 |
|
This Act contains the leave entitlements of male and female employees when a child is born or adopted under the age of 6, provided the employees have worked for the same employer for the period prescribed in the Act. |
|
Privacy Act 1993 |
- employees
- volunteers
- contractors
|
This Act contains rules for the collection, storage, disclosure and use of personal information about employees, volunteers and contractors. |
|
Wages Protection Act 1983 |
|
This Act requires employers to pay the employee the entire amount of wages payable unless the employer is entitled to make certain authorised deductions. |
The Employment Relations Act 2000
Good faith
The Employment Relations Act 2000 (the Act) is one of the main pieces of legislation relating to employment. It replaced the Employment Contracts Act 1991 and requires employees and employers to act in "good faith". That means they must deal with each other honestly and with mutual respect. Good faith and honest communication are particularly important during the hiring phase.
At the most basic level, good faith means employers are not allowed to mislead or deceive their employees or unions, and employees in return must not mislead or deceive employers. Employers also have to respect the authority of their employees' union and cannot discriminate for or against anyone based on their union membership.
Who does the Act cover?
The Act applies to every employee and employer, so a community organisation with any paid staff must conform to it. An employer may be an individual, a company, partnership, trust or incorporated society. An employee is any person employed by an employer to do any work for hire or reward (e.g. wages, salary or commission). Volunteers and independent contractors are not "employees" under the Act.
The Act now requires that all employment agreements must be in writing. For there to be an employment agreement, a position must be offered for hire or reward, and the offer must be accepted. The terms of the agreement should be negotiated before the offer is made.
Legal obligations owed to workers
To follow is a checklist (taken from Keeping it Legal E Ai Ki Te Ture) with questions to test your knowledge of the legal obligations and liabilities in relation to the recruitment of new employees, volunteers and independent contractors. The checklist may also indicate how well an organisation is doing (or not doing) with current workers.
If you answer "no" or "unsure" to any of these questions, you should make it a priority to find out the relevant information which is given in Keeping it Legal E Ai Ki Te Ture (Fact Sheets 9 and 16) available online at www.keepingitlegal.net.nz.
Checklist of obligations owed to workers
| Question |
Yes or no or unsure? |
Obligations to employees:
- Do you know which workers in your organisation are considered to be employees under the Employment Relations Act 2000?
- Do you understand the differences between an employee and an independent contractor?
- Do you understand your potential liability for the actions of your employees?
- Do you understand your duties and obligations as an employer?
- Do you understand the obligation of employers, employees and unions to deal with each other in "good faith"?
- Do you understand the role of unions and their rights of access to the workplace?
- Do you have procedures or policies in place for:
- checking whether new employees need any special licences or permits?
- warning and disciplining employees and giving them the chance to improve?
- handling employment disputes, including personal grievances?
- taking leave, including parental leave?
- Do you understand the differences between independent and collective employment agreements?
- Do you understand the processes relating to work-related injuries, such as ACC levies, rehabilitation and compensation?
Obligations to volunteers and contractors:
- Do you know which workers in your organisation are considered to be volunteers?
- Do you understand what obligations you owe to your volunteers?
- Do you understand your potential liability for the actions of your volunteers?
- Have you checked whether any special licences or permits are required for your volunteers' roles?
- Do you know the rules governing reimbursement of volunteer expenses?
- Are you aware of the ACC entitlements of volunteers?
- Do you know which workers in your organisation are considered to be independent contractors?
- Do you understand what obligations you owe to your contractors?
- Do you understand your potential liability for the actions of your contractors?
Tip
For further checklists on:
- managing health and safety
- human rights obligations
- privacy obligations
- intellectual property rights and obligations
- torts (civil) and criminal liabilities
- caring for your premises and environment
- so that they're safe to work in),
refer to Keeping it Legal E Ai Ki Te Ture (Fact Sheet 3: Laws you need to know about — people, activities, premises and environment) — www.keepingitlegal.net.nz.
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