How can I be a great employer?

Do employees have to work their notice period?

The resignation – an employee can resign at any time. They must give you at least the amount of notice stated in their employment agreement. If they don’t, you don’t have to pay them beyond their last working day.

If they agree to give you more notice than what’s in their contract, that’s fine, but you can’t make them. If they’ve got annual leave stored up, you can reach an agreement whereby part of their notice is served as annual leave, or you can simply pay out that amount.

Once they’ve notified you verbally that they’re leaving, they need to state in writing the date, the notice period and that they’re resigning voluntarily.

How do I fire an employee?

Firing an employee is the least desirable way to end employment, however if it’s the only option available to you it’s important to follow the process carefully so that you don’t wind up facing a personal grievance allegation.

You can dismiss an employee for:

  • Misconduct – ongoing poor performance, minor breaches of the employment agreement, and confidentiality breaches are some of the ways an employee could be accused of misconduct. If you’ve followed a process for managing misconduct then you can dismiss an employee if the misconduct is ongoing.
  • Serious misconduct – sometimes an employee may have behaved so badly that it’s grounds for immediate dismissal. For example, if they’ve endangered the health and safety of others, have been violent, bullying or harassing, if they’ve been stealing or if they’ve committed some kind of fraud, you can dismiss them on the spot. Serious breaches of their employment contract can also be grounds to fire an employee.

Meet your employer obligations

Being a great employer starts with understanding what your obligations are and it is your responsibility to ensure that all your employees are being taxed accordingly.

It’s important to have a good payroll system, like MYOB Essentials Payroll, that automates compliance for you by keeping you up to date with the latest IRD tax changes including ACC, KiwiSaver and Student Loan rates.

It also takes the hassle out of running pay runs by automating payroll compliance, meeting your record keeping requirements and of course keeping your employees happy.

For more information to assist you with each stage of the employment lifecycle,
download our FREE Essential Employer Guide.


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