Insights & Articles

The Employment Relations Authority (ERA) recently issued a noteworthy determination, in which a significant amount of compensation was awarded in favour of an employee who had endured severe bullying in the workplace. This case has the potential to establish a precedent, paving the way for comparable compensation awards to be made in cases involving moderate to severe breaches of employment law by employers.

The Holidays Act 2003 specifically provides for annual 'customary' closedowns. There are a few rules you need to be aware of. We have set out some scenarios, and answered the most commonly asked questions.

The Holidays Act 2003 specifically provides for annual 'customary' closedowns. There are a few rules you need to be aware of. We have set out some scenarios, and answered the most commonly asked questions.

Medical incapacity of an employee is a challenge that demands a delicate balance between empathy and practicality. Determining when to draw the line on a long-term illness and how long to keep a job open for a sick employee is a challenging task shaped by case law intricacies. Employers are not expected to hold a position indefinitely but they must follow a fair process before terminating an employee’s employment.

We are fast approaching New Zealand's General Election, and the nation's political parties have hit the campaign trail with their visions for the country. Changes are expected not only in the political sphere but also in employment and workplace relations. This article discusses the political parties' campaign promises and provides an overview of some of the parties' plans for the future, with a note that the list is not exhaustive

Is your company deducting the Employer KiwiSaver contribution from your employees' pay? A new Bill, introduced to Parliament on 8 June 2023, aims to revolutionize the employer's role in KiwiSaver contributions.

The Employment Relations (Extended Time for Personal Grievance for Sexual Harassment) Amendment Bill ("the Bill") has now become law.

One of the considerations that employers need to make when undertaking a restructure and making roles redundant, is whether there are any redeployment opportunities for the impacted employees. See our previous article on restructures, which noted that, "During the consultation phase, you must consider and discuss with the employee whether there are any redeployment opportunities for them within the business, or if there are alternatives to redundancy, such as reducing hours or taking a period of leave".

Employers are generally prohibited by law from withholding an employee’s wages or salary, and other monetary entitlements due to the employee under legislation, with very few exceptions. The Government is now looking to criminalise intentional acts by employers of withholding such payments.

There have been numerous news articles recently about restructures, loss of jobs, and the impending gloom of 2023. If you are thinking about restructuring, you need to ensure the process is carried out correctly.

As well as potential changes to the Holidays Act, see last year's article Changes on the way for the Holidays Act, there are potential changes on the horizon in relation to sexual harassment claims and restraint of trade provisions. We have outlined the details below.

The countdown to Christmas is on. Many workplaces in New Zealand are planning their annual closedown over the Christmas period. This will likely mean that many employers are attempting to navigate the complexities of the Holidays Act 2003. We have set out to answer some frequently asked questions during this time of the year.

The construction industry often engages independent contractors, rather than employees. There is clearly a need for contractors in the industry, but in some situations, contractors are engaged because they are often seen as easier to engage than employees. This is often because a company can end a contractor's contract by giving notice, contractors do not receive annual leave or sick leave and are not entitled to minimum wage.

The Employment Court recently issued a decision relating to whether employers were entitled to require employees to take annual leave during the Covid-19 lockdown in April 2020. Three employees brought a case against Carter Holt Harvey LVL Limited ("the Company") after the Company told staff that they would need to take eight days leave during the lockdown in April 2020.

Significant changes are coming to the immigration sector in New Zealand, which will have major repercussions on employers who are intending to hire migrants to work in New Zealand. The Accredited Employer Work Visa ("AEWV") is a new temporary work visa being introduced on 4 July 2022. This new visa is one step in the Government's five step plan for reconnecting New Zealand to the world after the Covid-19 pandemic.

Should we include a probationary period in the employment agreement? As per our previous article, "90 Day Trial Periods", if you have 20 or more employees you cannot include a trial period in an employment agreement, as an alternative, many employers choose to include a probationary period.

Should we include a trial period in the employment agreement? A trial period is a tool that can be used by employers to find out if an employee is suitable for a role. During the trial period, an employer can dismiss the employee and the employee cannot raise a personal grievance for unjustified dismissal, so long as the trial period is valid. Trial periods if used correctly, are a great tool for employers. However, trial periods are often challenged, so it is essential employers know when to use them and what is required.

On 29 March 2022, Parliament introduced the Fair Pay Agreement Bill ("the Bill") coined to the "biggest shakeup to workplaces in generation coming from government". The Bill has recently passed its first reading. Despite this, a number of people have expressed their reservations with the newly proposed system such as National Party's Paul Goldsmith stating that the Bill may make New Zealand less internationally competitive and add pressure to already stressed businesses.

New Zealand is now well and truly in the next stage of its strategy in responding to the Covid-19 global pandemic - learning to live with Covid-19, specifically the Omicron variant, in the community. This will see employers facing a number of new challenges, including the management of large numbers of absences in the workplace and coping with flexible working arrangements.

Last week the New Zealand Government, supported by Business New Zealand and the Council of Trade Unions ("NZCTU"), released a proposal on an income insurance scheme ("the scheme") – one of its biggest reforms since the introduction of ACC in the 1970s. McVeagh Fleming's employment team have summarised the 'need to know' information.