Backdating employment

19 Jun

For companies in strong trade associations it could be wise to try and secure understandings that competitors will not take advantage of the situation.A union might be singling out an employer to be the “fall guy” in a campaign to lift the overall industry wage.Such an offence could be tried in the magistrates’ court or on indictment.Section 6(2) provides that the maximum penalty on indictment is 10 years’ imprisonment.There is usually no problem with making the contract Contracts based on a US template sometimes state in the first line that they are dated “as of” a particular date.This probably means “with effect from” rather than “on”, and so probably don’t fall into the trap described above.In any event, it is an inferior way of dealing with the true legal state of affairs.The need to document transactions is partly based on commercial necessity, and partly on legal necessity.

Take opportunities to address staff directly instead of having the company’s position filtered through the workers negotiating team.In the commercial world there is often a desire for documents to take effect before the date on which they are ultimately signed.Typically this is where parties have reached an agreement and must wait while their solicitors properly document that agreement.For example, although the sale of a business could be conducted entirely without writing, the parties will be required to submit a notice (in South Australia called a ‘71E Statement’) to their State Revenue authority about the sale and pay Stamp Duty on the sale as if a document had been drawn.An oral sale of a business may also necessitate registration of the change of ownership of the business name, bank finance documentation and re-registration of any motor vehicles sold – to name but a few examples.