A number of NZ employment legislative changes have recently occurred, and other changes are just around the corner. Businesses should prepare for these changes now by:
updating employment contract templates
implementing new or revised company policies (i.e. meal and rest breaks)
communicating to staff
creating variations for current staff (if required)
Failure to comply can affect staff morale and/or attract hefty fines and penalties! Please get in touch with us if you need help.
What are the key changes effective 6 May 2019?
For many NZ businesses, the two key changes will relate to rest and meal breaks, and the 90-day trial period.
Rest and meal breaks
From 6 May 2019, the right to set rest and meal breaks will be restored (similar to how it was a few years ago).
The number of breaks and duration of these breaks depend on the number of hours worked in a day. For example, an eight-hour work day must include two 10-minute rest breaks and one 30-minute meal break, while a four-hour work day must include one 10-minute rest break.
Employers must pay for minimum rest breaks but don’t have to pay for minimum meal breaks.
Employers and employees will agree when to take their breaks. If they cannot agree, the law will require the breaks to be in the middle of the work period, so long as it’s reasonable and practicable to do so.
Some limited exemptions may apply for employers in specified essential services or national security services.
90-day trial period
From 6 May 2019, 90-day trial periods can only be used by businesses with less than 20 employees.
Businesses with 20 or more employees can use probationary periods to assess an employee’s skills against the role’s responsibilities. Broadly speaking, the process requires employers to address performance issues and other concerns during this period in the same way they would at any stage of the employment relationship, and is very different to how the 90-day trial period works.
What about other changes?
A number of other changes were effective on 12 December 2018, and other changes effective 6 May 2019.
Collective Bargaining and Unions
There are a number of collective bargaining and union changes, effective 12 December 2018, and 6 May 2019.
The list is more extensive than the other changes, so we recommend that you visit this link to read about them (and all other changes).
Restructuring – vulnerable industries
From 6 May 2019, employees in specified ‘vulnerable industries’ will be able to transfer on their current terms and conditions in their employment agreement if their work is restructured, regardless of the size of their employer.
Changes also include a longer notice period for employees to elect to transfer to the new employer; this notice period is a minimum of 10 working days.
New categories of ‘vulnerable employees’
From 12 December 2018, new categories of employees may apply to receive the protections afforded to ‘vulnerable employees’ through an application process set out in the Act.
Reinstatement of employment
From 12 December 2018, if requested by the employee, reinstatement (employee gets their job back) will be the first course of action considered by the Employment Relations Authority, for employees that have found to be unfairly dismissed.
For some businesses, this will mean that they will want to be certain their formal employment processes are completely fairly and correctly. Please get in touch with us if you need help.
Changes effective 1 April 2019
If you would like further information, or you need assistance in preparing your business for these changes, please get in touch with us.
This information is general guidance only, and you should not solely rely on this information; specific advice should be sought for your situation.