Why Written Employment Agreements Are Always Needed

If employers neglect this key part of the employment process they may find themselves dragged into a personal grievance process that they cannot win. In Williams v Camira Furniture Limited, the employer’s lack of formality, both at the beginning of the employment relationship and during the disciplinary process, caused a winnable case to end in a draw.
Camira hired Mr Williams without a written employment agreement but Mr Williams did not live up to the promise Camira saw in him. Mr Williams ran up $4,500 in personal internet use (through downloading music), and $135 in personal work charged to the company account. He also crashed the company car causing it to be impounded by the police.
Camira met with Mr Williams several times but did not explicitly tell him his job was in jeopardy as they thought that was an obvious inference to be drawn from the issues discussed.
Unfortunately the ERA did not agree with Camira and found its disciplinary process less than adequate.

Mr Williams was unsuccessful in his claim for lost wages because during his employment with Camira he took on another job which would have made it impossible for him to continue to work for Camira. Unfortunately, the ERA said that Camira’s inadequate processes caused Mr Williams distress and embarrassment and it compensated him $5,000 less 30% for his contribution to these events! But the ERA also ordered Mr Williams to pay Camira the $4,635 he owed it.