Insights & Articles

You will likely have heard the term "The Great Resignation". Over the last few months we have had a number of clients approach us for ideas and wanting to know how they can set their organisation apart from others in order to retain staff.

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.

The Court of Appeal recently released a decision Metropolitan Glass & Glazing Limited v Labour Inspector Ministry of Business, Innovation and Employment [2021] NZCA 560 reversing an earlier ruling of the Employment Court regarding short-term incentive payments under the Holidays Act 2003.

This week the Employment Relations Authority ordered Rocket Lab Limited ("Rocket Lab") to pay $97,000.00 to an employee for an unjustified dismissal. Mr Owen was employed by Rocket Lab in January 2018 as a Vehicle Test Manager. Rocket Lab did not give Mr Owen an induction, he was essentially expected to 'get on with it'.

Employers and employees alike have long been grappling with the Holidays Act 2003 ("Act") due to its complexity. Difficulties with compliance has resulted in employees receiving incorrect payments, being unaware of their statutory entitlements and employers owing significant amounts of historical underpayments. It is no surprise the Labour Government's announcement to review the Act was welcomed by many.