2017 may have been the calm before the storm on the employment law front.

This year we saw the minimum wage rise to $15.75 per hour from 1 April, the Employment Standards Bill taking full effect from the same date, and the first ever pay equity settlement in New Zealand - resulting in close to 50% pay increases for some female aged care workers.

With a new Labour/NZ First coalition supported by the Greens, we are watching this space closely to see what will be changed or introduced next year. Policy announcements so far have confirmed that the minimum wage will rise to $16.50 per hour from 1 April - the first of a series of significant increases up to $20 per hour by 2021. Labour have pledged to 'make workplaces fairer' from 1 April too - details to be confirmed - but based on their pre-election policies, we think its likely we will see changes in at least the following areas:

• End of 90 day trial periods as we know them
• Changes to the bargaining framework in favour of unions
• Introduction of pay equity legislation that 'removes barriers' to women making pay equity claims (a pay equity claim is a claim for equal pay for work of equal value).

Don't get left in the dark - contact us to go on our mailing list to stay informed and ahead of the game.

Mediation is a popular form of alternative dispute resolution used to resolve many forms of disputes including workplace, commercial, family and community based issues. It is usually used where two parties are in dispute but it can cater for more parties in some situations.

Forms of mediation do vary; at ER Resolutions we apply a facilitative model in line with our Resolution Institute accreditation. We work through a process that assists the parties to identify the underlying issues between them, consider the needs and interests of both parties, and then move into considering possible options for resolution before reaching agreement on an option, or a combination of options, if possible. The parties are free to decide whether or how they choose to resolve a dispute at the end of the mediation process and either party can walk away from the process at any time.

Mediation is an effective alternative to litigation because it allows the parties to come to their own decision on a resolution, which means they have control over the outcome. It is also generally a lot more cost effective than litigating a dispute. Even though reaching a resolution in mediation is optional, the proportion of disputes that resolve partially or fully in mediation is high. As a result mediation is now used in most civil jurisdictions in New Zealand as an optional or mandatory step prior to litigation.

Yes, if you employ any staff, even on a casual basis, you need a written and signed employment agreement on file. An employment agreement is an employment contract which contains the employee’s terms and conditions of employment. Aside from being a compulsory requirement, it is extremely helpful to have written terms and conditions covering things like pay, hours of work, termination of employment and dispute resolution so both sides are clear on what to expect from the relationship.

ER Resolutions provides a template employment agreement that we can tailor for your needs, to make sure you meet your legal requirements and that the document works for you.

The minimum wage is currently $16.50 for adult workers and is reviewed annually. Refer to MBIE’s page below for further information:

www.mbie.govt.nz

Studies that have taken place in New Zealand and other similar economies such as the UK have consistently found that 1 in 4 or 1 in 5 employees self-identify that they have experienced workplace bullying at some point in their working career.

Workplace bullying definitions do vary – in New Zealand Worksafe have create their own definition which most employers now need to work to. The core components of the Worksafe definition are that bullying is ‘repeated, unreasonable behaviour that creates a risk to health and safety’. Which definition you use will have an impact on the number of people that self-identify as having experienced bullying at work.

Workplace bullying and how to manage a workplace bully are complex issues and we strongly recommend you talk to us about your options on how to address this if you know or suspect that you may have a problem at your workplace. The negative impacts of workplace bullying are well documented – loss of productivity, engagement, high absenteeism and turnover are some of the most tangible impacts.

No we aren’t employment lawyers.

In New Zealand our employment laws are designed so that it is not usually necessary to engage expensive lawyers to manage employment relationships or defend a personal grievance. We have extensive experience and a solid track record advocating for employers (and employees from time to time) in all forums through to the Employment Relations Authority, including cases where the other party has chosen to engage a lawyer. Even if you are successful in defending a claim you will only be likely to recover a proportion of these costs from the other side, and that proportion generally reduces the more you spend on representation or advice.

Having said that, some technical cases particularly those that overlap with other jurisdictions can benefit from a lawyer’s broader legal expertise, and we will always give you honest advice if this is the case for you.

The Employment Relations Act along with the Holidays Act and the Wages Protection Act set a legal framework for employers and employees to operate within. The main components are as follows:

• Minimum standards create a ‘minimum floor’ for all employers to comply with, even if they only employ casual or temporary staff. Minimum standards cover things like minimum wage, holiday, sick leave and bereavement leave, breaks, record keeping, equal pay and written employment agreements.
• A framework for how employers, employees and unions are required to act towards each other, including a requirement that they all act in ‘good faith’ in all of their dealings with each other.
• Dispute resolution procedures, including the right to representation, personal grievances, mediation services and the Employment Relations Authority and Employment Court.

Other more ad-hoc requirements also exist and are often added to the Employment Relations Act so it is important to keep up to date with these developments, which usually occur in March. Examples include technical restructures and vulnerable workers provisions.

We provide updates to all of our clients when any significant legal changes or HR developments occur. This service is free of charge. If you would like to be included on our mailing list, email enquiries@erresolutions.co.nz with the subject title 'mailing list'.

ER Resolutions provides you with the tools you need to get the value you expect from your workforce. Many employers benefit from implementing an effective performance improvement and development framework that enables them to attract, motivate and retain high performers, whilst identifying and and managing poor performers.

We introduce pay systems to ensure pay is structured to reward and motivate high performance for the business. Some employers need to make sure their employment agreements and records comply with employment laws. The best way to decide whether we can be of benefit is to book a free initial consultation with us. Contact enquiries@erresolutions.co.nz.

Over 70% of employers lose in the Employment Relations Authority. Losses are due to procedural errors (not following the correct process in the view of the Authority, and/or not complying with their own procedures, policies or the employment agreement) or substantive issues (where the Authority doesn't believe the employer can justify their actions) or both.

It is most common for employers to lose due to procedural errors, as the Authority closely scrutinsises the procedure that was followed in each case. This is particularly common where an employer dismisses an employee for outrageous behaviour 'in the heat of the moment' without thinking about the procedural steps they need to follow for any dismissal. That said, at least 90% of personal grievances are resolved without an Authority hearing, so it's important to bear in mind that cases before the Authority are only a small part of the picture.

It depends on the steps you have already taken to address the employee's performance, and the impact their performance is having on your business. You need to provide them with reasonable support to improve prior to dismissal. The end to end process usually takes around 3 months. It requires genuine attempts to be made to support improvement, through regular and documented conversations about progress, expectations and reasonable support measures, with dismissal as a last resort.