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Consequences of COVID-19 starting to show

During the COVID-19 lockdown and beyond, many employers have resorted to reducing employees’ pay – some with, and some without, consultation and/or agreement.  It all happened so quick, it was all so new and unfamiliar, and many employers understandably made some rather swift changes to better position their businesses to survive.  We are now seeing some of the consequences coming through the employment institutions, with a few cases coming out of the Employment Relations Authority that are giving some serious cause for concern!

Ready, willing and able to work

These cases centre around the principle that in order to be paid, employees need to be ‘ready, willing and able’ to work.  Many employers have taken the position that during the COVID-19 lockdown, employees were not ‘able’ to work, and as a result they were discharged from their normal obligations to pay wages and salary in accordance with the relevant employment agreements. However, while that may apply in some circumstances, we are now seeing is that is not necessarily the case!

Continue reading → Consequences of COVID-19 starting to show

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Paid parental leave extended to 26 weeks

From 1 July 2020 paid parental leave has been extended to from 22 to 26 weeks.  The current rate of these payments for eligible employees are a maximum of up to $606.46 per week before tax, or a minimum payment of $189 per week before tax.

The ‘keeping in touch’ allowance has also increased to 64 hours. These hours allow an employee to work a limited amount of time during the paid parental leave period, without losing their entitlement for payments. This arrangement needs to be agreed to by the employer and employee.

Need help understanding your obligations or entitlements regarding parental leave?

Contact Us 

Please do not substitute this article for professional advice.
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COVID-19: Things your business should be thinking about regarding Coronavirus

None of us really know how widespread COVID-19 will become in New Zealand, and how this will begin to impact our everyday lives.  However, one thing for certain is the likelihood that there will be some level of impact on many local businesses, and subsequently, on our employees.

We’ve put together a brief outline of the things we’re recommending business leaders start thinking about – if you haven’t done so already – to help get through this global pandemic:

Continue reading → COVID-19: Things your business should be thinking about regarding Coronavirus

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Minimum wage goes one step closer to $20 target

On 1 April 2020 the adult minimum wage rate is going up to $18.90 per hour.  This is the last step in a series of significant incremental increases that have been rolled out since the new Government announced (back in 2017) that the minimum wage would reach $20 per hour by 2021.

The minimum wage will go up to $20 per hour on 1 April 2021, which is in line with the Government’s original intention.

Continue reading → Minimum wage goes one step closer to $20 target

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An update – trial periods and payments in lieu of notice

An interesting trial period case has been considered by the Court of Appeal recently with surprisingly positive results for employers!  Making payments in lieu of notice when terminating an employment agreement under the trial period has always been risky.  The law surrounding this practise has been unclear, and we have always advised against it.

However, in the case of Loan v Scott Technology NZ Ltd, the Employment Court examined the unique circumstances of this trial period dismissal and found that the payment made in lieu of notice satisfied the requirements of ‘giving notice’ for the purposes of section 67B(1) of the Employment Relations Act.  The Court of Appeal agreed.

Continue reading → An update – trial periods and payments in lieu of notice

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New ‘triangular’ personal grievance law passed

The Employment Relations (Triangular Employment) Amendment Act 2019 has been passed into legislation, making changes which may cause significant implications for the labour hire/temp industry as we know it.

From 27 June 2020, the new law will allow a labour hire worker (commonly referred to as a “temp”) to potentially add a host company to a personal grievance proceeding which the labour hire worker takes against their employer (the “labour hire agency” or “temp agency”). This is enabled by the newly introduced concept of a “controlling third party”, which has been defined in the Act as a person:

  • who has a contract or other arrangement with an employer under which an employee of the employer performs work for the benefit of the person, and
  • who exercises, or is entitled to exercise, control or direction over the employee that is similar or substantially similar to the control or direction that an employer exercises, or is entitled to exercise, in relation to the employee.

Continue reading → New ‘triangular’ personal grievance law passed

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Equal Pay Bill making progress

The Education and Workforce Committee has reported back on the Equal Pay Amendment Bill, recommending that the Bill be passed with some amendments.  The long-awaited Bill aims to address gender pay equity arising from the historical and systemic undervaluation of ‘women’s work’ in our society.

Key changes to the Bill recommended by the Select Committee include the following:

  • Providing a benchmark for determining a “predominantly female” workforce as being one that is, or historically was, approximately 60% or more female.
  • Removing the requirement to undergo facilitation before seeking a determination in disputes, to maintain a low threshold to commence bargaining and provide the Courts with greater discretion.

Continue reading → Equal Pay Bill making progress

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What you need to know about the Domestic Violence—Victims’ Protection Act

The Domestic Violence—Victims’ Protection Act 2018 came into effect on 1 April this year.  This enactment makes a number of amendments to the legislation that governs our workplaces including the Employment Relations Act, Holidays Act and Human Rights Act.

The key changes to be aware of are:

  • Employees with over 6 months’ continuous employment are entitled to 10 days per year paid family violence leave
    • Any untaken leave is not carried forward
    • Untaken leave is not paid out on termination of employment
    • The domestic violence does not have to occurred during the term of the employment

Continue reading → What you need to know about the Domestic Violence—Victims’ Protection Act

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KiwiSaver contributions and the minimum wage

Some employers adopt a “total remuneration” approach to compulsory KiwiSaver contributions, meaning the employee is paid a set rate of pay that includes the employer’s compulsory contributions to their KiwiSaver account.  As such, if the employee joins KiwiSaver then their pay is adjusted down to offset the compulsory employer contribution (this is in addition to the deduction for their own personal KiwiSaver contribution).  If they don’t join KiwiSaver, then they get their rate full pay without any deductions for KiwiSaver.

This sort of arrangement does comply with the KiwiSaver Act 2006, but it must be agreed to and adequately specified in the employment agreement.

Continue reading → KiwiSaver contributions and the minimum wage