Employing staff under casual agreements in New Zealand can be a convenient option for many businesses. However, the allure of flexibility comes with its own set of risks and challenges. In this article, we will delve into the potential pitfalls associated with casual employment agreements for employers in NZ, offering insights on mitigating risks effectively. A genuine casual worker Does not have a pattern of work Does not have an ongoing expectation of work Can accept or decline any work offered And if this doesn't apply to your casual worker, then you could actually have a permanent employee. But I gave them a casual employment agreement and they agreed! The employment agreement is important, but more so is the actual nature of the employment relationship. Sometimes the nature of the employment can change over time, or if may never have been genuinely casual in the first place. We've also seen employers get confused between what permanent part-time employment, trial periods and casual employment look like, without meaning to do anything wrong. What happens then? Well there may be a risk that your casual worker can claim to be permanent employees. And if this goes to the ERA you may find you are directed to pay them compensation and their entitlements, such as accrued annual leave, even if there was an 8% loading on their pay. If you were to dismiss them, then this may also be decided to be an unlawful dismissal. So what should an employer do? If you have casual employees, regularly check whether they are still a genuine casual. If not, seek advice as you may need to consider whether they should have their employment changed to permanent part-time. And don't use a casual employment agreement to trial a new employee, that could be risky.

Workplace stress , also known as occupational stress, can occur when the demands of a job exceed an employee's ability to cope with them. Work stress can affect employees across various industries. Factors such as heavy workloads, tight deadlines, lack of autonomy, poor communication, and work-life imbalance contribute to heightened stress levels among workers. Four ways you could help prevent stress in your workplace: Promote Work-Life Balance. Encourage employees to maintain a healthy work-life balance by implementing flexible work arrangements, promoting time off, and discouraging overtime work. This can help reduce burnout and improve overall job satisfaction. Foster a Supportive Work Environment. Create a culture of support and open communication within the workplace. Encourage employees to share their concerns and provide avenues for seeking help or professional support when needed. Provide Training and Resources. Equip managers with the necessary training to identify signs of stress in their team members and provide appropriate support. Offer resources such as employee assistance programs and mental health services to address work stress effectively. Establish Clear Expectations. Clearly define job roles, responsibilities, and expectations to reduce ambiguity and confusion among employees. Setting realistic goals and timelines can help manage work stress and improve productivity. Benefits of stress prevention in the workplace By actively addressing workplace stress, employers can reap numerous benefits, including: Increased employee morale and job satisfaction. Improved productivity and performance. Reduced absenteeism and staff turnover. Enhanced organizational reputation as a supportive employer. Workplace stress can be a significant concern. By implementing strategies to prevent and manage work stress effectively, New Zealand employers can create a healthier and more productive work environment for their employees. Prioritising employee well-being not only benefits individuals but also contributes to the overall success of the organization. Remember, a stress-free workplace is a productive workplace!

As an employer in New Zealand, it's crucial to understand the laws surrounding wage deductions to ensure compliance and maintain a fair working environment. Unlawful wage deductions can lead to legal troubles and damage your relationship with employees. This guide will help you navigate the rules and regulations, so you can manage wage deductions correctly and ethically. What are Wage Deductions? Wage deductions refer to amounts subtracted from an employee's gross pay. These can be for various reasons, including tax obligations, KiwiSaver contributions, student loan repayments, and occasionally specific costs related to employment. While some deductions are mandatory and lawful, others require specific conditions to be met to ensure legality. Lawful Wage Deductions In New Zealand, certain wage deductions are lawful if they meet the criteria set out in the Employment Relations Act 2000 and the Wages Protection Act 1983. These include: Mandatory Deductions: These are deductions required by law, such as PAYE tax, ACC levies, KiwiSaver contributions, and child support payments. Court-Ordered Deductions: Any deductions ordered by a court, such as fines or other legal penalties, must be complied with. Employee-Authorized Deductions: Deductions agreed upon by the employee in writing. This could include union fees, insurance premiums, or loan repayments. It’s essential that employees provide explicit and informed consent for these deductions. And if there are other deductions you need to make, be sure to follow a good process To prevent unlawful deductions, we recommend that you Obtain Written Consent: Always get explicit, written consent from employees for any deductions that are not mandatory or court-ordered. Ensure that employees understand what they are consenting to. Communicate Clearly with Employees: Clearly explain any deductions on pay slips and be open to discussing any queries or concerns employees might have regarding their wages. Review Deductions Regularly: Regularly review your payroll practices to ensure all deductions are lawful and correctly documented. Rectify Any Mistakes: If an unlawful deduction has occurred, correct it immediately and compensate the employee accordingly. Seek Legal Advice if Needed: If the situation is complex, seek advice from a legal professional specializing in employment law to ensure you comply with legal requirements. Conclusion Understanding and adhering to the laws surrounding wage deductions is vital for maintaining a fair and lawful working environment. By ensuring that all deductions are lawful and properly authorized, you can avoid legal issues and build a positive relationship with your employees.

#EmployerQuestion The Employment Relations Authority (ERA) is an independent entity in New Zealand responsible for resolving employment relationship problems, disputes, and complaints. So let's explore what it does... Upholds the law: It operates under the Employment Relations Act 2000 and plays a crucial role in enforcing employment laws and regulations across various workplaces in New Zealand. Its decisions help to ensure that employers and employees alike are treated fairly and that employment standards are upheld across the country Resolving employment disputes: The ERA has the authority to hear and make determinations on a wide range of employment-related disputes, including unjustified dismissals, wage and holiday entitlements, breaches of employment agreements, and other employment relationship issues. Investigating and mediating disputes: The ERA has the power to investigate complaints and disputes between employers and employees and facilitate mediation between the parties to help reach a resolution. Mediation is often encouraged as a first step in resolving disputes before proceeding to a formal hearing. Conducting investigations and inquiries: The ERA can conduct investigations and inquiries into alleged breaches of employment laws, such as minimum wage violations, discrimination, and other unlawful employment practices. It has the authority to issue compliance orders and penalties for non-compliance. Making determinations and decisions: After considering all the evidence and submissions presented by both parties, the ERA will make a determination or decision on the dispute. This decision is legally binding and enforceable, and it may include orders for remedies such as compensation, reinstatement, or other appropriate actions Providing guidance and information: The ERA provides guidance and information to employers and employees on their rights and obligations under employment law. It offers resources, publications, and advice to help parties understand their rights and navigate the employment dispute resolution process.

#EmployerGuide In New Zealand, MBIE provides free mediation offers a powerful tool for resolving such conflicts amicably and efficiently, helping to maintain positive working relationships and avoid costly legal battles. In this blog, we'll explore the benefits of mediation in New Zealand and how employers can effectively navigate the mediation process. Mediation is: voluntary (in the first instance) confidential facilitated by an impartial third party mediator free through MBIE It focuses on finding mutually acceptable solutions rather than determining fault or assigning blame. This collaborative approach encourages open communication and allows parties to retain control over the outcome of the dispute. Key to a good mediation outcome: Approach mediation with a genuine willingness to resolve the dispute and collaborate towards a mutually beneficial solution Gather relevant documents, evidence, and information to support your position and facilitate productive discussions during the mediation session. Listen to the concerns and perspectives of the other party with an open mind. Try not to approach it from an emotional point of view Remain flexible and open to compromise, considering alternative solutions that meet the underlying interests of both parties rather than rigidly adhering to specific demands. Shift the focus from past grievances to future-oriented solutions that promote positive changes and prevent similar disputes from arising in the future. Mediation offers employers in New Zealand a valuable opportunity to resolve employment disputes in a constructive and collaborative manner, facilitated by an impartial mediator. It is voluntary but it can be pragmatic to agree, rather than forcing the applicant to file in the Authority and drag the issue out for much longer. Benefits of agreeing to voluntary mediation Cost-Effectiveness: Agreeing to voluntary mediation means less legal costs Preserving Relationships: Voluntary mediation occurs quicker, allowing resolution to occur sooner

#yourquestionsanswered How should an employer go about employing and dismissing people on a 90 day trial? With the new government's changes to legislation, 90 Day Trials aren't just for employers with less than 20 employees. Anyone can use them, but its important to make sure you do it right to reduce the risk of an unfair dismissal claim! Before employment: Ensure that your employment agreement has a robust 90 Day Trial clause in it. Give them their employment agreement (with the 90 day trial clause in it) at least three working days before they commence work. Ensure that the employee signs and returns their contract the day before commencing work During employment: Monitor their progress/fit within the role and the business. If you have concerns or think you might want to terminate them, do not leave it to the last minute! Before dismissing your employee under a 90 day trial: If you're considering termination, make sure that you are still within the 90 day period Organise a meeting with the employee to provide them with the notice of termination of their employment. Note: failure to provide the correct notice could give them grounds to raise a grievance. Be sensitive to the fact that this may be a stressful situation. Don't get caught out by not following a good process! Just because there is legislation that allows for dismissal under a 90 day trial, doesn't mean that there aren't common pitfalls that employers fall into and that cost them dearly. This is especially painful to see when it was a terrible employee that could have been fired for many other reasons, like in this case: "A man whose employer cited 13 instances of poor conduct when he was dismissed has been awarded more than $27,000 after the Employment Relations Authority ruled there was insufficient evidence, and he had been unjustifiably dismissed." Golden rule with 90 day trials: Don't rush and have a good checklist (like ours!) to ensure you get it right.

#yourquestionsanswered What does it mean to put an employee on gardening leave, and do they have to agree? Garden leave is when an employee retains their employment, receives full pay but does not report to work. Both the employer and the employee need to agree to this. This makes it different from being suspended on full pay. If an employee is suspended, their agreement to suspension does not have to be asked for. Wanting to put an employee on garden leave? Check whether this is an option in their employment agreement. If not, you should take advice around the risks associated with this in your specific circumstances. When could you consider garden leave: for an employee's notice period to help them search for another job for an employee's to reduce distraction for other workers to cover their restraint period Other potential, although less common, situations might be: if a permanent employee has no work to do However, we'd recommend getting advice before doing this! What are your obligations to your employee if they are on garden leave: All the terms and conditions of the employment agreement still apply, as the employee is still employed. If you have any questions, queries or concerns, don’t be afraid to get in touch for some more free advice.

#yourquestionsanswered How do you act in good faith, and why should you? Acting in good faith is a legislated requirement for both parties in an employment relationship. So what is good faith? Good faith, in the context of employment, encompasses the principles of honesty, transparency, and fairness in all interactions between employers and employees. It establishes a foundation of trust, essential for fostering a collaborative and supportive work environment. What does this mean? In a nutshell: being communicative, consulting your employees and treating them fairly. Other than in law, why should you act in good faith? Embracing the principles of good faith is not just a legal obligation but a strategic choice for employers. By fostering clear communication, fair treatment, active consultation, effective conflict resolution, and mutual trust, employers can create a workplace culture that not only complies with legal requirements but also promotes employee satisfaction, loyalty, and organizational success. Acting in good faith can: Enhanced Organizational Culture: Employers who prioritize good faith contribute to a positive and inclusive organizational culture. This, in turn, attracts and retains top talent, creating a workplace where employees are motivated and engaged. Increased Employee Productivity: Trust between employers and employees is directly linked to increased productivity. Employees who feel valued and supported are more likely to invest their time and energy into their work, resulting in higher levels of productivity and innovation. Positive Employer Branding: Organizations that operate in good faith are more likely to be perceived positively by current and prospective employees. Positive employer branding is a valuable asset in attracting talent and maintaining a strong market position.

#yourquestionsanswered How to work out who to pay and what this festive season Who do I pay time and half? Every employee who works on a public holiday, for every hour that they actually work on that day. Who gets a day in lieu? Anyone who works on a public holiday and would normally work on the day of the week, ie, its an 'otherwise working day'. Who gets paid if they don't work? Anyone who would normally work on that day if it wasn't a public holiday, ie, its an 'otherwise working day'. What is an 'otherwise working day'? A day that either through a clause in the employment agreement, a pattern of work or both, an employee would normally have expected to work. What if my business has a Christmas closedown? You would still need to pay them on Public Holidays if it was an 'otherwise working day' for them. Note: Even if they are on holiday or sick, you should not pay them using their annual leave or sick pay entitlements on this day instead. For instance: Ali works every Monday for 5 hours but never on Tuesdays. If he: doesn't work on Xmas day (Monday) because the office is closed. Ali would be paid 5 hours anyway because it is a public holiday and its an 'otherwise working day' for him. does work on Xmas day (Monday) but only for 2 hours. Ali would be paid time and a half for the 2 hours he worked and be given a day in lieu to take off in the future. This would be the equivalent of his normal day's pay. works on Boxing Day (Tuesday). Ali would only be paid time and a half for the hours he works. He would not received a day in lieu because this is not an 'otherwise working day' for him. does not work on Boxing Day (Tuesday). Ali would not be paid for the public holiday, as it is not an 'otherwise working day' for him. Please note: This is intended to be a general overview and should not be subsititued for advice about your specific situation.

#yourquestionsanswered An employee can raise a pay equity claim with their employer if they do work that is (or was historically) female-dominated and there are factors that indicate the work is currently or has historically been undervalued Why is this important? In New Zealand, pay equity and pay transparency are becoming increasingly important topics for employers. This is due in part to the introduction of the Equal Pay Amendment Act 2020, which aims to address gender pay gaps and ensure equal pay for work of equal value. What happens if an employee raises a pay equity claim? You must respond that you have received it within five working days. Then you have 45 working days to assess whether the claim is arguable - basically do the points add up and is it possible they may have a case. We'd recommend taking advice about this as soon as possible to ensure that you are managing any risk. Then generally both you and the employee attempt to work together with MBIE's assistance to resolve the situation and come to an outcome. What should you do to ensure your practices are equitable? Act fairly and reasonably. Address any concerns that employees might have about pay in a timely manner. Provide regular performance reviews, training or development opportunities. What else could you do? You could conduct a pay equity analysis across the workforce. MBIE provides a good guideline for this here. This involves reviewing pay data to identify any disparities based on gender, ethnicity, or other factors. While this can seem like a lot of work, it can provide a really good snapshot of how equitable your business is and what risk you might have of a pay equity claim. You could develop a pay policy. This can help build trust and understanding with employees. This policy could outline how pay decisions are made, how employees can request information about pay, and how the company will respond to these requests. If you do this, make sure you regularly review this to ensure it's up to date. Note: These aren't legal requirements, but they can be helpful to ensure that you are paying your employees equitably.