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.

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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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