Hiring your first employee means becoming subject to the Basic Conditions of Employment Act, which sets non-negotiable minimum standards for working hours, leave and the written particulars of employment, regardless of the size of the business. Getting these basics right from the first hire avoids both legal risk and a poor foundation for the employment relationship.
These are the core requirements every first-time employer needs to know.
Written particulars of employment are mandatory
Every employee must receive written particulars of employment covering role, remuneration, working hours and leave, among other details, within the first days of employment. This isn’t optional paperwork; it’s a legal requirement that also protects the employer by making expectations explicit.
A properly drafted employment contract, beyond the bare minimum particulars, adds further protection and clarity for both sides.
Working hours and overtime have defined limits
Ordinary working hours and overtime are capped under the Act, and overtime must be compensated according to specific rules, not left to informal arrangement. Understanding these limits before scheduling staff avoids inadvertent non-compliance.
Rest periods, both daily and weekly, are also mandated and cannot be waived informally, even with an employee’s agreement.
Leave entitlements are minimums, not negotiable extras
Annual leave, sick leave, and family responsibility leave are all mandated minimums under the Act, and an employer cannot offer less, even if an employee were willing to accept less.
Understanding how leave accrues and is calculated correctly from day one avoids disputes later, particularly around what happens to accrued leave when employment ends.
Get this right from the very first hire
Getting the fundamentals right from a business’s first employee sets the pattern for how the business handles compliance as it grows, and fixing bad habits later is harder than establishing good ones from the start.
The full Act is published by the Department of Employment and Labour, and confirming specific requirements there is more reliable than a general summary, including this one.
Frequently asked questions
Do small businesses need to comply with the Basic Conditions of Employment Act?
Yes, regardless of size. The Act sets non-negotiable minimum standards applying to every employer with employees.
What must be given to an employee when they’re hired?
Written particulars of employment covering role, remuneration, working hours and leave, within the first days of employment.
Are working hours limits fixed?
Yes, ordinary hours and overtime are capped, with overtime compensated according to specific rules, not informal arrangement.
Can leave entitlements be reduced with an employee’s agreement?
No. Annual, sick and family responsibility leave are mandated minimums that cannot be reduced even with consent.
Why does getting this right from the first hire matter?
It sets the compliance pattern as the business grows; fixing bad habits later is harder than establishing good ones from the start.
Further reading
Originally published in 2024. Updated September 2026 into a clearer summary of Basic Conditions of Employment Act requirements for a first-time employer.
