NZ Employment Law Reforms & Update
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Overview of 2019 employment law in NZ including Employment Relations Amendment Act 2018, Domestic Violence - Victims Protection Act 2018, Privacy Bill, Holidays Act Working Group, Equal Pay Bill
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NZ Employment Law Reforms & Update
- 1. EMPLOYMENT LAW AS AT FEBRUARY 2019
- 2. GROW HR TEAM Dave Robb Director Lynette Blackburn HR Consultant Kirsty Overend HR Advisor Kerry Goldfinch HR Consultant Laura Gregory – HR Consultant Mandy Cartwright Director Lance Peterson HR Consultant/ Mediator
- 3. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • What is happening in law • Practical considerations UPDATE FEBRUARY 2019
- 4. Employment Relations Amendment Act 2018 • Royal Assent 6th December, 2018 • Purpose Restore minimum standards and protections for employees Promote and strengthen collective bargaining and union rights Introduce greater fairness between employees and employers to promote productive employment relationships
- 5. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R 12th December 2018
- 6. • Applies to unfair dismissal • Subject to employee request • Order must be practicable and reasonable . Reinstatement as Primary Remedy
- 7. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • Removal of multi-employer collective agreement (MECA) opt-out • Earlier initiation timeframes for unions in collective bargaining • Removal of deductions for partial strikes • Restoration of Union Access. Collective Bargaining & Union Rights
- 8. • Union membership recognised as a ground for discrimination • Timeframe extended from 12 to 18 months of an employee joining a union Protection Against Discrimination For Union Members
- 9. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R 1st April 2019
- 10. Minimum Wage GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • $16.50 per hour since 1st April 2018 • $17.70 per hour effective 1st April 2019 • Training/Starting Out Wage – 80%
- 11. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R Domestic Violence – Victims’ Protection Act 2018 GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • Up to 10 days of paid domestic violence leave per year • Short-term flexible working arrangements • Privacy Considerations
- 12. Payday Filing GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • Employment information must be filed every payday • Requirement to file electronically if your annual PAYE/ESCT is $50k or more. • Due date for payment remains the same
- 13. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R 6th May 2019
- 14. Only available to employers who have less than 20 staff at the; beginning of the day on which the employment agreement was entered into. 90 Day Trial Periods GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R
- 15. • Restoration of statutory rest and meal breaks to be taken at specified times unless otherwise agreed. • Exemption will only be for workers in defined essential services/national security roles. Rest and Meal Breaks GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R
- 16. • Removal of exemption for employers with less than 20 staff • Increase in time to accept offer of transfer from 5 to 10 working days Vulnerable Workers GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R
- 17. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • Restoration of 30-day rule • Duty to conclude bargaining • Inability to invalidate strike notices on minor grounds Collective Bargaining and Union Rights GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R
- 18. • Rates to be published in collective agreements • Introduction of an Active Choice Form • Reasonable paid time for union delegates • Information to be provided about union/s Collective Agreements GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R
- 19. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE RGRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R ON THE HORIZON
- 20. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R Employment Relations (Triangular Employment) Amendment Bill GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • Select Committee Final Report received 17th December 2018 • Report recommends by majority that it be passed with the amendments shown.
- 21. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R Equal Pay Amendment Bill GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • Select Committee Report due 16th April 2019
- 22. Fair Pay Agreements GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • Report released end of January 2019 • No proposed timeframe for consultation phase • A Bill will most likely be introduced following completion of the consultation
- 23. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R Privacy Bill GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • Select Committee Report due 13th March 2019 • Replacement of Privacy Act 1993
- 24. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE RGRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R Holidays Act Working Group GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R • To report back by May 2019 • Purpose is to make recommendations for a clear and transparent set of rules for an increasingly diverse range of working and pay arrangements
- 25. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R PRACTICAL CONSIDERATIONS GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R
- 26. Cases of Interest • Cafe worker awarded $9000 for a day's work - Mawhinney V Sfizio Limited • Revisitation of Rest and Meal Breaks - Jetstar Airways Limited v Richard Greenslade • Sacked for Theft - Hosegood v Head Auto Wreckers Ltd
- 27. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R Recruiting Quality Staff • Are your recruitment practices delivering good outcomes? • How are staff being inducted / onboarded?
- 28. GRO W HR - YOUR TRUSTED HUMAN RESO URCE S BUSINE SS PARTNE R Retaining Quality Staff • Supporting ongoing performance development & delivery • Managing the impacts of wage Inflation
- 29. 06 878 5454 growhr . co. nz
Editor's Notes
- Going to cover what has happened and is happening around employment law We will then look at a couple of cases of interest and Talk through employment areas we are recommending for review
- Date of first changes
- Multi-employer collective agreement (MECA) opt out:- This option will be removed, meaning employers will be required to bargain for a MECA. Parties will still be able to object to concluding a MECA so long as it is on reasonable grounds. Earlier initiation timeframes for unions in collective bargaining:- Restoration to support orderly collective bargaining. Unions will again be able to initiate bargaining 20 days ahead of employers. Deductions from pay for partial strikes:- Removal of the ability for employer to deduct any pay in response to partial strike. This means that the employer is to bear the costs of any partial strike (or lockout of employees who are party to or engaged in partial strike). Union Access:- Restoration of union ability to access workplace without prior consent from employer where there is coverage or where bargaining towards a collective agreement in in process.
- Employers will not be able to discriminate against employees on the basis of their union membership status. Timeframe for employer’s behaviour to be seen as discriminatory is extended from 12 to 18 months from the employee joining a union or undertaking union activities.
- 7.3% increase for 2019 Training/starting out wage continues to be 80% if minimum wage Wage inflation has been fairly static around the 1.5 - 2% mark since 2012 so we are heading into unprecedented waters. NZ not been in a situation where the OCR has been at such low levels and wage inflation much higher. Future indicative rates: $18.90 1st April 2020 $20.00 1st April 2021
- To help staff to deal with the effects of domestic violence Short-term flexible working arrangements - changes to work location, hours, duties, contact details and other arrangements. One of the critical issues is privacy – act does not address this - employers should think about who requests are made to and how, what information is recorded or shared, and with whom - including within payroll and on payslips. e.g. we wouldn’t recommend setting up a leave code in payroll called domestic violence leave
- instead of an Employer monthly schedule (IR348) Must provide new and departing employees' address information, as well as their date of birth - if they have provided it to you, and Due date for payment remains the same at the 20th of the month (or 5th and 20th of the month for twice-monthly filers). One to talk to your accountant/book keeper about if you don’t have this covered
- 6 months after royal assent
- Not effective until 6th May – continue to use for now Will apply for any in place by 5th May irrespective of numbers of staff Discuss beginning of the day on which the employment agreement was entered into. Discuss probationary periods
- For every 2 hours to 4 hours - a 10-minute paid rest break. For every 4-6 hours – a 30 minute unpaid meal break For an 8 hour worker this would be 2 x 10 minute paid breaks and 1 x 30 minute meal break Unless otherwise agreed, requirement is for breaks to be in the middle of the work period, so long as it’s reasonable and practicable to do so. Discuss implications for those compensating breaks Discuss implications for single worker environments e.g. retail
- Vulnerable workers - cleaning, food catering and laundry services in specified sectors, facilities, or places of work. Reversal of 2016 change which saw employers with less than 20 staff not have to transfer existing staff This particularly helped the likes of cleaning companies who operated on franchises, contracting arrangements did not direct hire
- 30-day rule:- For first 30 days of employment new employees must be covered by the same terms as an applicable collective agreement. More favourable additional terms are able to be negotiated between parties. Duty to conclude bargaining:- Restoration of the duty to conclude bargaining unless there are genuine and reasonable grounds not to. Strike notices:- Strike notices will not be invalidated due to minor omissions, errors or technical deficiencies that do not affect the substance of the specified information from being provided.
- Rates of wages and salary in collective agreements:- Requirement to include pay rates in collective agreements and an indication as to how pay rates may increase over the term of the collective. Active choice form:- Active choice form’ within the first 10 days of employment. 30 days to consider if they want to join the union and be bound by a collective agreement Forms must be provided to the applicable union unless the employee objects. Provision for reasonable paid time for union delegates:- Employers will be required to provide union delegates with a reasonable amount of paid time to undertake union activities It must not unreasonably disrupt the employer’s business or the delegate’s work. Information provided about role and functions of unions Employers will be required to pass on information regarding the role and function of unions in the workplace to any prospective employee
- Nothing more has happened with this to date! The bill as introduced would make two main changes: Give employees the right to coverage by a collective agreement. Provide a framework for employees to raise a personal grievance with their employer and for the controlling third party to be joined to the proceedings. Select Committee changes proposed Change implementation date from day after Royal Assent to 12 month after or other date as set to assess impact on other legislation Changes to which collective the employee would be a party to Improved notification processes if a PG is raised Insertion of a clause to set out the process the Authority or the court must use when it determines that an employee has a personal grievance and the controlling third party has been joined to the proceedings.
- Introduced September 2018 Submissions closed in November This bill is about Improving processes for raising and progressing pay equity claims Eliminating and preventing discrimination on the basis of sex in the remuneration and employment terms and conditions for work done within female-dominated jobs.
- In mid-2018, the government commissioned the Fair Pay Agreement Working Group, (chaired by former Prime Minister Rt Hon Jim Bolger) Purpose to make independent recommendations on the scope and design of a system of bargaining that sets minimum terms and conditions of employment across industries or occupations. if adopted, as few as 10% or 1000 workers in that industry (whichever is fewer) ask for it, it could trigger a nationwide negotiation process It is about setting minimum pay and working conditions for specific workers – they are targeting the lowest paid groups It would provide a new collective bargaining tool for workers and employers to use
- Introduced 20th March, 2018 Purpose is to promote people's confidence that their personal information is secure and will be treated properly. Key changes Mandatory Reporting of Privacy Breaches Ability for the Privacy Commissioner to issue compliance notices Strengthening Cross-Border Data Flow Protection New Criminal Offences about who and how information is provided, mostly to the Privacy Commissioner New power to enable the Privacy Commissioner to Make Binding Decisions on Access Requests Strengthening the Privacy Commissioner’s powers so they can shorten the time frame within which an agency must comply with an order and an increase in penalties for non-compliance.
- Recognition of challenges with broad range of working patterns – no longer 8 hours x 5 days Working group are mostly looking at; How entitlements are provided How payments are calculated Payroll implications It will not address remediation A bill is expected to follow - watch this space
- Recruitment How are you attracting quality applicants? Rise in social media What tools are you using to make best assessment – beyond questions/references Watching for what could be considered ‘work trials’ – minimum wage and trial period implications Checking employment offers are processed and 90 day trial requirements are met if being used Induction/Onboarding What are your processes for getting employees up to speed with the job and ‘how we work round here’ Is there clarity on where you expect new staff to be within the first 3, 6 and 12 months? How do your tools support this – e.g. Checklists, handbooks, standard procedures? Taking the time to invest early is what can pay dividends (literally sometimes)!
- Retention Global skills shortage impacts are felt across NZ Cost of replacing is estimated to be around 6 x annual pay when you factor likes of costs of recruitment, time to get to full performance and downtime for others to train and mentor Performance Development How do you share business priorities and make sure staff are clear on expectations Are staff getting regular and timely feedback Are they getting opportunities to progress and develop Wage Inflation Managing relativities and expectations with minimum wage increases with affordability Does this impact on size and shape of roles e.g. is technology changing the shape of roles? Is a structured approach / benchmarking needed? Are other payment schemes like profit shares, bonuses, commissions still fit for purpose?