Nature of the Relationship between Parties
1. a) The nature of the relationship between Worksites Company Limited under sole directorship of Mr. Pera TeAmo (employer) and Ms Adnelg Retrop (employee) was that of contract of service. Employer-employee working relationships can take two forms; contract of service or contract for service. The contract of service is a form of employment relationship where the employee is an individual instructed to perform certain set of duties as directed by an employer, provided that the duties set out by the employer are legal. On the other hand contract for service means the employee is an entity. It can be a company or a group of people or an individual registered under a business name. Therefore the work in this case is given to a registered entity. If the entity is a limited company for example, then in the event that the limited company becomes bankrupt and is dissolved by the authorities while still in contract with the employer, then the director’s personal properties can not be attached to repay/compensate the employer for work not done even if it had been paid for in full or in part.
Ms Retrop Vs Worksites Company ltd employment relationship was therefore that of contract of service because Ms Retrop is not a registered legal entity but a person operating under her personal name of Ms Adnelg Retrop.
b) In determining the nature of the contractual relationship between Worksites Company Limited and Ms Adnelg Retrop, we will run fundamental or economic reality test as set out in the act. Ms Retrop did not pay he tax neither was it withheld by Worksites Company Limited, this therefore indicates that there was no discussion about tax as the company did not advice her and make statutory deductions such as tax from Ms Retrop pay. This evidence supports the idea that Ms Retrop regarded herself as a full time employee not a casual employee as she attended work everyday for a given period of time until the day the employer sent her the text message regarding her dropping off the keys to the site as the boys had moved out. Whenever Ms. Retrop purchased food with own money she asked for reimbursement and attended work even on public holiday and asked for extra payment for such days. (Hartley, 2012) There was no written employment agreement entered between the two parties although the Ms Retrop attempted to ask for it. The whole relationship therefore has the hallmark of a full time employment going by the test of the nature of salary payment and reimbursements and time frame within which contractual relationship between Worksites Company Limited and Ms Retrop existed. (“Employment Relations Act 2000 No 24 (as at 01 September 2017), Public Act Contents – New Zealand Legislation”, 2017)
Advantages and Disadvantages of Employer-Employee and Contractor Options
It is an easiest form of contractual relationship that can be can be established without taking much time. An employee in this case is an individual who can make decision faster compared to an entity that may take several meetings and consultations before a simple decision is reached due to varying opinions of the directors or members of the entity. Employer-employee contractual relationship also tends to be simple in terms of clauses that need to be included in the contact because it usually personal and one person make the decision. It is also easy to terminate this king of relation reason being the decision involves least number of stakeholders usually being the employer and the employee as single entities. On the hand also this kind of contractual relationship can be exploitative to the employee because usually there is no much scrutiny done on the part of the employee as he or she signs the document to get the job. (Dundon, 2011)
On the second contractual relationship open to the employer that is the contractor option, there are a number of advantages and disadvantages associated with this kind of the contractor. The first advantage is that in this option the employer is likely to get better outcome or performance because a contractor has more capabilities than a single person. The contractor could be having at his disposal massive and quality experience in a certain field under which contractual terms have been entered due to bigger number of personnel it could be having at its disposal. Another advantage is that the company contracted usually have more bureaucratic measures that goes to ensure quality of the work agreed and has a better estimation of goals and projections as they are informed by research a careful deliberations before they are adopted by the company. (Wilkinson, Wood & Deeg, 2012)This process could slow activities but in the end it ensures quality work is delivered as planned. A disadvantage of this kind of contractual relationship is that the entity could be Limited Liability Company. Therefore, should a company already contracted by the employer goes under receivership then the employer would have a hard time in court, if it tries to attach the personal properties of the directors of the company under which it was contracted to recover payments made to it. In such an event the employer may face loses due to work paid and not done by the contractor. Another disadvantage in contractor option is that decisions take long for them to be made. The company could be having other stakeholders who need to ratify a decision before the company can commit to the employer. These processes tend to slow down business and thus may affect the timelines of the employer if it was operating under tight schedule. (Teper, 2015)
Provisions in IEA and CEA
b) The first provisions that must be made are the parties to the agreement without this particular provision the agreement would not exist and is not executable. The position of the employee must also be provided given that the role has to be known in order to set the stage for the remaining part of the agreement. A provision for the terms and conditions of the work must also be set in the agreement to stipulate the place of work, length of duty, rules policies and procedures among other conditions that must be stated in order for the nature of operation or Modus operandi of the work to be understood clearly. A provision for setting out the remuneration and benefits of the employee must also be included without which it will not be unknown what compensation the employee will get from working for the employer. The agreement must also contain a provision for stating out the leave or off-work days the employee is entitled to once contractual agreement is signed by both parties. There should also be a provision for stating how disputes would be resolved incase it arise between the parties in course of the work. Termination and arbitration clauses are some of the clauses that are found in employment contracts. These types of clauses further reinforces the operability of the agreement in such as way that it will be clear what to be done according to the agreement in an event of any eventuality. (“Employment Relations Act 2000 No 24 (as at 01 September 2017), Public Act Contents – New Zealand Legislation”, 2017)
Minimum wage, minimum notice period, equality clause, right to union and representations and freedom of association are some of the statutory terms which must be included to any contractual agreements and are imported from the main law or the constitution of the country under which the employment contract is being made. Due to inability of other entities to bargain for themselves a better and suitable agreement, many governments across the world has seen it fit to include these statutory terms into the main constitution that is the guiding law under which all agreements made in that particular country must be consistent with it and should any agreement that is entered is inconsistent with the main law, then such agreements would be invalid to the extend of the inconsistency with the main law as set out by the sovereign will of the people of the country in question. (“Employment Relations Act 2000 No 24 (as at 01 September 2017), Public Act Contents – New Zealand Legislation”, 2017)
Incorporation of Statutory Terms
3. a) Employment relations problems can be defined according to the Employment Relations Act 2000 as problems arising from the agreement between the employer and the employee/contactor and includes disagreements such as dispute about the meaning and interpretation certain clauses/ terms or a provision contained in the agreement.
In the case study under discussion the employment relationship problem central to the case was the type of employment the two parties; Worksites Company Limited under sole directorship of Mr. Pera TeAmo (employer) and Ms Adnelg Retrop (employee) thought they got themselves into. The employer suggested that the nature of employment was casual while the employee suggested that the nature of employment was a fulltime. (Stuart & Martinez-Lucio, 2012)
The act is very clear on how disputes such as what is contained in the case study can resolved. The first option is the use of labor inspector who can listen to the case and decide in the best interest of all the parties concerned and the law by mediating or arbitrating between the two parties. If this option fails then they case can be referred to the authority created by the act to oversee matters relating to labor relations. The case can also be referred to the court of law. (“Employment Relations Act 2000 No 24 (as at 01 September 2017), Public Act Contents – New Zealand Legislation”, 2017)
b) There are a number of options through which this case can be resolved as stipulated by the act. The two concerned parties that is Worksites Company Limited under sole directorship of Mr. Pera TeAmo (employer) and Ms Adnelg Retrop (employee), can resolve this disputed by engaging the services of a mediator in this case labor inspector as provided for by the act. The second option is resolving the case through use of the labor authority through which the committee will sit down and listen to both sides before, in its wisdom, make a ruling that is both anchored in the law and agreeable to all parties concerned. Should any of those avenues fail in resolving the case then the case can be referred to the court of law where the judge or the magistrate will make a ruling that all the parties will be bound to respect and execute or if not satisfied then any party is free to proceed to the next court level as stipulated in the constitution to appeal the decision of the lower court. The decision can be upheld or quashed the higher court based on evidenced brought before it. (“Employment Relations Act 2000 No 24 (as at 01 September 2017), Public Act Contents – New Zealand Legislation”, 2017)
Dundon, T. (2011). Understanding Employment Relations (1st ed., pp. 3-6). McGraw-Hill Education.
Edwards, R. (2011). Rights at work (1st ed., pp. 2-7). Washington, D.C.: Brookings Institution.
Employment Relations Act 2000 No 24 (as at 01 September 2017), Public Act Contents – New Zealand Legislation. (2017). Legislation.govt.nz. Retrieved 25 September 2017, from https://www.legislation.govt.nz/act/public/2000/0024/latest/DLM58317.html
Hartley, J. (2012). Employment relations (1st ed., pp. 4-9). London: University of London External Publications.
Jevons, W. (2013). The state in relation to labour (1st ed., pp. 7-9). New Brunswick [N.J.]: Transaction Publishers.
Nankervis, A., & Alexander, R. (2004). Employment relations (1st ed., pp. 1-11). Southbank, Vic.: Thomson.
Rasmussen, E. (2004). Employment relationships (1st ed., pp. 2-9). Auckland: Auckland University Press.
Shortt, A. (2013). The evolution of the relation between capital and labor (1st ed., pp. 1-7). Kingston: Ganvel.
Stuart, M., & Martinez-Lucio, M. (2012). Partnership and modernisation in employment relations (1st ed., pp. 5-12). London: Routledge.
Teper, L. (2015). The Function of Management in Achieving Sound Labor Relations. Industrial And Labor Relations Review, 2(4), 400-478. https://dx.doi.org/10.2307/2518588
Training manual to fight trafficking in children for labour, sexual and other forms of exploitation. (2009) (1st ed., pp. 11-17). Geneva.
Wilkinson, A., Wood, G., & Deeg, R. (2012). The Oxford handbook of employment relations (1st ed., pp. 4-8). New York: Oracle.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
