Agreement and written KETs
A contract of service creates an employer–employee relationship; it may be written, oral, express or implied, including an appointment letter or apprenticeship agreement. Written terms reduce disputes. Written KETs are required where the contract starts on/after 1 April 2016, the employee is Employment Act-covered, and the contract lasts at least 14 days, not merely 14 days worked. Issue within 14 days of commencement: starting 1 January means issue by 15 January. Soft/paper/handwritten copies are acceptable; shared leave or medical policies may appear in a handbook or intranet.
Commencement, confirmation and termination
The contract takes effect when the recruit reports on the agreed start date. If the recruit never starts, the Employment Claims Act does not apply: the employer cannot claim notice pay or compensation under it and would need the civil-court route for compensation. Confirmation is contractual, not regulated by the Employment Act; service counts from actual commencement, not confirmation. Either party may terminate the contract through the applicable route.
Employment versus independent contracting
A contract for service engages an independent contractor for a fee to deliver work on their own business account; Employment Act statutory benefits do not apply. No single test is decisive. Examine recruitment/dismissal and wage control, production method/timing and who provides work; ownership of tools, equipment, premises and materials; and whose business it is, profit/loss exposure and how remuneration/profit is calculated.
Self-employed engagement template
SEPs can request key engagement terms using the dedicated template; service-buyers can adapt it. Including all suggested items in sections A–E prepares a service-buyer to adopt the Tripartite Standard on Contracting with SEPs. The linked self-assessment tool assists with identifying the relationship.
Related topics and services
Documents and references
- self-assessment tool ↗ Government source
- Read article → · KETs template for SEPs ↗ File
- Tripartite Standard on Contracting with SEPs ↗ Reference