Maintaining Proper Employment Records is Essential to your Business
To have a successful business, you should maintain complete and accurate employment records. Meeting your legal requirements will also help you to build your reputation as a good business with your employees and customers.
Your employment records must show:
- you've correctly given your employees all their minimum employment entitlements such as the minimum wage and annual holidays, and
- you have complied with the Employment Relations Act 2000 and the Holidays Act 2003.
You must keep all records for at least 7 years and be able to demonstrate your compliance to Labour Inspectors.
Maintaining proper records helps to avoid non-compliance costs ranging from infringement notices to major financial penalties and serious reputation damage that could reduce the value of your business.
Ensure you know the payroll details you must cover, including:
- employment agreements
- the kind of work an employee does
- wages, and
- time sheets.
Also verify regularly that your payroll systems and processes (manual or computerised) record your employees' hours and pay accurately, and are current for latest employment law.
For information covering essential records, record templates, information guides and learning modules, visit www.employment.govt.nz enter the search words "keeping accurate records".
On the site you can also subscribe for employment law updates via our newsletter. If you need personalised help with information call us on 0800 20 90 20.
Finally, for more support contact a professional advisor such as a lawyer, accountant or payroll provider.
(on behalf of MBIE)