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90 day trial periods are tricky – see our checklist!

When employment is subject to a trial period and the employee is dismissed during the trial period, they are prevented from taking a personal grievance for unjustified dismissal.  However, employees can still take a personal grievance on other grounds, such as disadvantage, discrimination and more.  There’s also a high chance that the trial period may be invalidated, leaving employers in a very tricky situation.

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New rules for rest and meal breaks from 6 May 2019

As a result of the Employment Relations Amendment Act 2018 and from 6 May 2019, there are new rules employers need to follow for providing employees with rest and meal breaks.

Previously, the legislation allowed employers to determine the times employees were able to take breaks and for how long (within reason).  Under the new legislation, employees will be entitled to prescribed breaks based on the length of their work period such as:

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Careful considerations for employment agreements

Whether you’re hiring someone new or an employee considering a new job offer, there are a few key clauses of the employment agreement that need careful thought and consideration.  Obviously, the rate of pay will be very important but there’s more to it than that.  We recommend you pay particular attention to the following key provisions: Hours of Work, Restraint of Trade and Trial periods.

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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.

Need help on minimum entitlements?

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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.

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