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2020 has certainly been a year like no other. Covid-19 has impacted organisations and our lives in numerous ways – from how we work and engage in business to mental health implications. After the year we’ve endured, what changes can we expect in regards to employment and employment law over the next 12 months?

Recent employment law updates you need to be aware of

Equal Pay Amendment Act 2020

NZ has a significant pay equity issue. Many female workers in NZ work in occupations that are more than 80% female, and these female-dominated occupations tend to be lower paid. Additionally, women are also under-represented in higher-level jobs.

The Equal Pay Amendment Act came into effect on 6 November 2020 and allows workers to make a pay equity claim. Female-dominated industries will be able to bargain for higher pay. Pay equity reporting for the private sector might be looked at in the future.

New Privacy Act 2020

The updated Privacy Act came into effect on 1 December 2020 and is a response to the advent of the internet and increased online communications. It introduces greater protections for individuals and some new obligations for businesses and organisations.

Businesses are required to protect customer information and the changes include mandatory reporting of serious privacy breaches to the Privacy Commissioner and to the people affected. For serious or repeated breaches, the Privacy Commissioner can direct a business to comply with the Act.

For businesses this means:

Businesses are advised to have a privacy management process and a Privacy Officer appointed.

Immigration Changes

New Zealand has experienced what some are referring to as the ‘brain gain’ with over 50,000 Kiwis having returned or about to return from overseas. However, in some industries, skill shortages have increased with not as many international visitors or RSE workers available. Immigration NZ has backlogs and an increase in resident visa applications.

Recently the government announced that 2000 RSE workers will be brought in through managed isolation facilities in January to alleviate some of the pressure in the horticulture sector. We can expect to see more changes as we adapt to an ever-changing environment.

Employment law changes to look out for in 2021

Minimum Wage

It is expected that the minimum wage will increase to $20 per hour in April 2021.

Leave

Bullying & Harassment

MBIE are currently running a public consultation on bullying and harassment in the workplace. The results will guide future policies and changes to health and safety and employment relations systems to address bullying and harassment at work.

Written submissions are invited from workers, businesses and other interested groups on the systems that prevent and respond to bullying and harassment at work, including sexual harassment.

The deadline for submissions is 31 March 2021.

Dependent Contractor Protections

What makes an employee vs a truly independent contractor is under scrutiny. Many industries currently restrict contractors contracting elsewhere and require them to work set hours, yet they do not receive the benefits of employment.

A law change in the future may address this inequality and ensure proper employment entitlements are provided in specific industries.

Fair Pay Agreements

Industry-wide collective agreements are being considered in sectors or occupations where there are issues with competitive outcomes, i.e. competition based on ever-decreasing labour costs, rather than an increase in quality or productivity. These are likely to be focused on large service sectors e.g. bus drivers.

 


Would you like more information on these employment law updates and how they apply to your business? Please contact us.

 

'New protections for employees in triangular employment situations' was originally published in the Marlborough Chamber of Commerce Voice Magazine - Issue 03.

The Employment Relations (Triangular Amendment) Bill received Royal Assent in June of this year, and will come into force on 27 June 2020. In an area like the Top of the South where a number of employers employ staff under this arrangement, there are some key changes to be aware of.

What is three-party employment?

A three-party employment situation is where employees are employed by one business or organisation but work under the control and direction of another business or organisation, known as “triangular employment”.  An example of triangular employment is a labour-hire agency who contracts the services of its employees to other businesses.

Industries that need to be aware of the impact this will have on their policies and processes for managing performance and disciplinary issues, include:

 

Consideration will also need to be given in situations where employees are placed on secondment to another organisation.

What are the important changes employers in triangular employment situations need to be aware of?

The most significant amendments relating to triangular employment are regarding the Personal Grievance (PG) process.

Under the new legislation, an employee working for a third party employer will be allowed to raise and join a personal grievance claim against their third party employer as though it was their primary employer. Employers will also have the option to apply to the Employment Relations Authority to join the controlling third party to a personal grievance proceeding they are facing.

In scenarios where it is deemed a personal grievance to be substantiated, consideration will be given to the extent, that both the employer and the controlling third party caused or contributed to the personal grievance in apportioning any award for reimbursement for lost wages and the payment of any compensation for hurt and humiliation and/or the loss of any benefit.

What do I need to do?

Without a doubt, these changes present employers and third parties with some unique and challenging dynamics to consider moving forward. Continuing healthy and robust commercial relationships in triangular employment scenarios will need to factor in agreement around key basic ‘employee rights’.

While next June may seem a while away, and for many employers the current season isn’t driving increased demand for labour, employers will need to start looking at their internal HR processes and policies to ensure they are compliant, in place and understood when the amendment bill comes into force.

For further information and advice on what you need to do, please contact one of our HR Partners.

A number of employment legislation changes are coming into effect from 1 April 2019. Here's what you need to be aware of:

Minimum Wage Increase

From 1 April, the minimum wage will increase by $1.20 per hour, up to $17.70. This aligns with Labour & NZ First's Coalition Agreement commitment to increasing the minimum wage to $20 by 2021.

The training and starting-out minimum wage rates are to increase from $13.20 to $14.16 per hour.

This may mean you need to review your internal pay relativities if your lowest paid people 'leapfrog' over others.

Victims Protection Act

The Victims Protection Act will come into force from 1 April this year. It will provide 10 days of paid leave a year to victims of domestic violence or people caring for affected children.

The Act also gives affected employees the right to request a short-term flexible working arrangement.

Payday Filing becomes Compulsory

From 1 April, all NZ employers will be required to file their employment information within two working days of every payday. This replaces the employer monthly schedule (EMS), which currently needs to be filed either in myIR or through the post.

If your annual PAYE/ESCT (Employer Superannuation Contribution Tax) is more than $50,000, you'll need to file electronically through payday compatible software or myIR.

If you haven't already, you can switch to payday filing now. Visit this IRD information page for everything you need to know about shifting to payday filing, including webinars and guides.

Employment Relations Act Changes (from 6 May)

Some minor changes are in force now. Most (e.g. restriction on trial periods) come in on 6 May 2019.

 

For full details about each of these changes, visit Employment NZ's website here.

Proposed KiwiSaver Changes

With the Taxation Bill currently set down for its second reading in parliament, the following three key changes are proposed to come to KiwiSaver later in 2019. This is what we think the changes will be - you don't need to make any changes yet.

Additional Employee Contribution Rates

Kiwisaver will introduce additional employee contribution rates of 6% and 10%. In addition to the current rates of 3%, 4% and 8%, these additional contribution rates offer employees greater flexibility.

There are no changes to the employer contribution rate of 3%.

Savings Suspension

A 'contributions holiday' - which an employee who has been a member of Kiwisaver for at least 12 months can apply for to take a break from making KiwiSaver contributions from their pay - will be renamed to 'savings suspension'.

The maximum length of the 'savings suspension' will be reduced from five years down to one year.

Over 65s can join a KiwiSaver scheme (from July 2019)

On the topic of KiwiSaver, it's important to note this additional change set to come in from July.

Currently, those over the age of 65 cannot join KiwiSaver (although they can continue to contribute if they are already a member). From 1 April 2019, it will become possible for over-65's to join a KiwiSaver scheme.

For this age group, there will be no five year minimum 'lock in' requirement, i.e. members who join after the age of 60 will be able to access their KiwiSaver money from the age of 65, even if they have been a member for less than five years.

Take some time before 1 April to make sure your employment agreements, policies and practices are up to date with these upcoming employment legislation changes. If you would like more information, or if you're not sure what they will mean for your business, please contact our team.

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We await the final outcome of employment law changes from the Coalition Government. The Coalition partner NZ First seemingly remain unconvinced on some of the proposals....

90 Day Trial Period

They have already flexed their muscle on the 90 day trial period proposal. The Government faces a backlash from employers who argue that these proposals represent a ‘back to the future’ regulated framework.

It is argued these proposed changes are out of step with emerging global trends around the ‘future of work’. This is largely borne out of the effects of rapid and transformational changes in technology which will see fundamental changes in how, where, and when our future generations will chose to ‘work’.

Fair Pay Agreements

Fair Pay agreements look remarkably like a return to pre-2000 occupational award system which cynics suggest were hardly successful in producing a high wage economy and were unconducive to greater flexibility in work practices of the like introduced by Perpetual Guardian's 4 day working week recently.

Pay Equity Bill

The Pay Equity Bill remains a work in progress. Few that would argue that jobs in one company or industry must pay the same - regardless of gender - if the skills, qualification and expertise is similar. Greater complexity lies in the principle of  ‘comparable worth’ principle which this Bill promotes. It purports a comparison of jobs in different industries where there is a predominance of ‘gender over representation’ and by implication some sort mandated transition to higher wage levels accordingly.

Watch this space and the ‘Winston’ effect on all of this …we are sure, and would support, much more healthy debate of what constitutes ‘comparability’, relative value of work, similarity of skills  qualification and experience and industry/employer affordability.


We recognise there is a lot to digest and have highlighted the key pieces of information relating to each legislation that all employers need to be aware of in this blog. Not all employment law changes will be relevant to you, therefore we are here to provide 1-1 professional advice and support to ensure your employment agreements, practices and policies are compliant.

Written by Paul Bell, Managing Director

It seems such a long time ago that we saw a change in government in New Zealand and discussions began about their position on various Employment legislation highlighted for a review as part of their first year plan.

As we pass the halfway mark of 2018, the changes identified are fast approaching. When they become law, we will see some fundamental impact on Employment Law and on employers across the country.

The key pieces of legislation the Government is aggressively progressing with over the next 5 months include:

1. The Employment Relations Amendment Bill 2018
2. Employment Relations (Triangular Employment) Amendment Bill
3. Domestic Violence – Victims Protection Bill
4. Fair Pay Agreements
5. Parental Leave
6. Holidays Act Review
7. Privacy Bill
8. Pay Equity

While we recognise there is a lot to digest, based on advice from Employment Lawyers Simpson Grierson, we have highlighted the key pieces of information relating to each legislation that all employers need to be aware of.

Not all employment legislation changes will be relevant to you, therefore we are here to provide 1-1 professional advice and support to ensure your employment agreements, practices and policies are compliant ahead of the changes coming into effect.

1. Employment Relations Amendment Bill 2018

The Employment Relations Amendment Bill 2018 includes the reinstatement of the requirement to provide employees with prescribed rest and meal breaks, restricting 90 day trial periods to employers with less than 20 employees and restoring reinstatement as the primary remedy.

Other changes to strengthen collective bargaining and union rights in the workplace will also be addressed. For employers where this is relevant, this will become a focus from September onwards.

2. Employment Relations (Triangular Employment) Amendment Bill

The Employment Relations (Triangular Employment) Amendment Bill is currently before the Select Committee and if it is passed, is likely to come into effect this year. The focus of this Bill seeks to give labour-hire workers and those in similar situations a number of the same workplace rights as full time employees.

3. Victims Protection Bill

On 1 April 2019, the Victims Protection Bill will come into force. It will provide 10 days of leave a year to victims of domestic violence or people caring for affected children and the right to request a flexible working arrangement.

4. Fair Pay Agreements

Fair Pay Agreements will focus on establishing a sector-level bargaining system allowing unions and employers to develop ‘Fair Pay Agreements’ that set minimum terms and conditions for workers. A priority for the government with potential implementation early 2019.

5. Paid Parental Leave

Paid Parental Leave has now increased from 18 – 22 weeks as of 1 July 2018 with a further increase to 6 weeks due 1 July 2020.

6. Holidays Act

A full review of the Holidays Act including the creation of a Holidays Act Working Group has been established with a mandate to carry out a full review of the provisions of, and payment for, holiday and leave entitlements.

7. Privacy Bill

The revised Privacy Bill due to replace the 25 year old Privacy Act will see our privacy laws aligned with international developments and reforms. Key changes include new ways to enforce information privacy principles and providing the Privacy Commission with greater powers to enact and monitor. If passed, this Act will come into place 1 July 2019.

8. Pay Equity

Pay Equity remains a very hot topic for the current government with the reconvening of the Joint Working Group on Pay Equity Principles in January of this year.

This group is tasked with providing further recommendations relating to the former Bill withdrawn from Parliament due to concerns raised by key government stakeholders. These recommendations could see a Bill introduced later this year with legislation likely to come into effect soon after.

Written by Amanda Parish, Intepeople HR & Talent Partner

Do you require your staff to work on Easter Sunday this year?

If your business is a shop and you plan to be open on Easter Sunday, you need to be aware of the amendments to the Shop Trading Hours Act 1990, that were introduced in 2017. If you require staff to work on Easter Sunday, you are required to notify employees in writing (or via email). This must be at least four weeks in advance of Easter Sunday, but no more than eight weeks.

On receiving the notice, employees have up to 14 days to notify you if they refuse to work that day. The employee has the right to choose not to work. They do not need to provide a reason for their choice.

If an employee is treated unfairly for choosing not to work on Easter Sunday, they have the right to bring a personal grievance.

Easter Sunday is not a public holiday, therefore employees are paid their usual rate. There is no entitlement to time and a half and a day in lieu.

For more information about this or to discuss your individual situation with one of our HR Partners, we invite you to contact us.

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