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Employers have obligations towards the employees and it is an essential best practice to ensure compliance with the Employment Law. Compliance with this law has improved the progress of business institutions through improved output by employees.

When a business employs paid employees, there are some basic provisions which must be made. There are some basic laws which must be understood in order to ensure best practices and compliance with the federal laws on employment.

The National Employment Rights Authority (NERA) has become on of the best sources of information about the Employment Law. According to the guide on compliance with the law, the following best practices are important. NERA also conducts regular inspections to ensure compliance with the regulations of the employment law.

Employer’s Obligations

Employers must ensure compliance with the basic requirement of the employment law. Business owners must provide the following for their employees:

• There must be a written agreement on the terms and conditions of employment
• There should be written proof of payment in the form of a payslip or statement of pay
• Employees must have entitlement to an agreed minimum wage
• There must be an agreement on the maximum number of working days in a week
• Employees must have entitlement to annual leaves
• There must be a proper notice before termination of employment
• Proper maintenance of records about their employees and their entitlements

Compliance with Inspection Services

There is need to comply with best practices and allowing regular inspection by the right authority. This helps in ensuring compliance with the employment law and promotes the business. The inspectors have rights to conduct the inspection with the following authorities:

• They can enter the premises at any reasonable time
• They can demand for any record to assess the compliance with the employment law
• They can inspect the records
• They can take copies of the records
• They can interview and ask for any information relevant to the employee in question

Employee’s Employment Status

There must be compliance with the requirements for the contract. The contact can either a contract of employment or contract for employment. Each has its own requirements and compliance must be implemented for best practices. Additionally, the terms of employments are important. There must be compliance with the requirements for:

• Fixed Term Employees
• Part Time Employees
• Employment Of Young People
• Employment Of Foreign Employees

Written Terms and Conditions

According to the Term of Employment (Information) Act 1994, providing a written Terms and Conditions is an important best practice. The contract letter cannot have information, and therefore there must be a written document on terms and conditions for the employee. These must explain calculation of the pay, sick pay scheme (if applicable), circumstances in which the contract will come to an end.

According to NERA, specific requirements must be fulfilled as a best practice. This will provide maximum output and success with businesses. Compliance with the employment law is a best practice which must not be ignored. Ignoring compliance with this law will lead to consequences when inspectors are not satisfied with their report.

Further reading: Corporate Governance | Audit | Performance Improvement