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Fair pay agreements

The Government is considering the establishment of a sector-level bargaining system. This would enable unions and employers to develop Fair Pay Agreements that set minimum terms and conditions for all workers in an entire industry or occupation.

In June 2018, the government established the Fair Pay Agreement Working Group, chaired by Rt Hon Jim Bolger ONZ, to make recommendations on the design of this system.

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The latest minimum wage

The adult minimum wage is now $16.50 per hour, which is up 75 cents from last year’s minimum rate. The starting out and training rates have also increased 40 cents to $13.20 per hour.

This is the new Government’s first step in progressively increasing the minimum wage to $20.00 per hour by 2020 (with the final increase to take effect in April 2021).  We expect the minimum wage to increase by at least $1.00 per year in order to hit this target so be prepared for your wage costs (or your pay packet) to go up.

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Please do not substitute this article for professional advice.

What is a constructive dismissal?

A constructive dismissal may occur when an employee has resigned, but the resignation has been forced or initiated by some unjustifiable action of the employer. This will typically occur under the following circumstances (we refer to Auckland Shop Employees Union v Woolworths (NZ) Ltd [1985] 2 NZLR 372):

  1. Where an employer gives an employee the choice of either resigning or being dismissed; or
  2. Where the employer has followed a course of conduct with the deliberate and dominant purpose of coercing an employee to resign; or
  3. Where the employer is in breach of a term or condition of employment to such an extent that the employee is justified in treating the employer’s conduct as terminating the employment.

Continue reading → What is a constructive dismissal?