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#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.

Its an election year, the cost of living is high and some industries are still reeling from Covid. What does this mean for employers? Skills shortage: Finding qualified and skilled employees for specific roles can be a challenge. Some Kiwi employers may struggle with attracting and retaining talent due to a lack of skilled workers in certain areas. Compliance with changing employment laws: Keeping up with evolving employment laws and ensuring compliance can be demanding for employers. Staying updated with legal requirements and adapting policies accordingly can be a continuous challenge. Employee retention and engagement: Retaining top talent and keeping employees engaged is a common challenge for employers. Creating a positive work environment, offering competitive compensation and benefits, and providing opportunities for growth and development are key strategies to address this challenge. Technological advancements: Embracing new technologies and adapting to digital transformations can be a challenge for employers. Keeping up with technological changes and implementing them effectively in the workplace may require additional resources and training. Workforce diversity and inclusion: Creating a diverse and inclusive workforce is a priority for many organizations. However, achieving diversity and inclusion goals may present challenges such as overcoming biases, ensuring equal opportunities, and fostering an inclusive culture. Mental health and well-being: Supporting employee mental health and well-being is gaining more attention in the workplace. Employers may face challenges in addressing mental health issues, promoting work-life balance, and providing appropriate support systems. Economic conditions and market uncertainties: Economic fluctuations and market uncertainties can impact businesses and create challenges for employers. Adapting to changing economic conditions and making strategic decisions to ensure the stability and growth of the organization is crucial. It's important for employers to stay informed about industry-specific challenges and trends, seek professional advice when needed, and continually assess and adapt their strategies to address the evolving needs of their workforce and business environment. When it comes to employment law and human resources, we can help Kiwi employers get it right.

#fivewaysto Strong employment policies not only protect your organization but also contribute to a fair and productive work environment. In this blog post, we will explore five essential steps that will help you ensure your employment policies are as watertight as possible and aligned with the legal framework in New Zealand. 1. Stay updated with New Zealand Employment Laws: Familiarise yourself with key legislation such as the Employment Relations Act 2000, the Holidays Act 2003, and the Health and Safety at Work Act 2015. Or find someone who already is familiar with these important documents. Make sure you, or someone who understands them, regularly reviews any amendments or updates to ensure your policies comply with the latest legal requirements. 2. Customise policies to suit your business' context: Tailor your employment policies to reflect the unique needs and practices of your team. Consider industry standards, cultural factors, and any specific local regulations that may apply to your business. Customisation ensures your policies are relevant and appropriate for your workforce. 3. Clearly communicate these policies: Effective communication is vital to ensure employees understand your employment policies, and stick to them! Developing policy documents that are easy to understand and accessible to all employees helps to make this easy for you and your team. Perhaps using an employee handbook or an online portal might work for your business. 4. Consistently enforce your policies: Consistency is crucial in enforcing your employment policies. Treat all employees fairly and equally and avoid making exceptions or deviating from established policies, as this can lead to confusion and potential legal issues. By consistently enforcing your policies, you establish a culture of compliance and fairness within your business. 5. Regularly Review and Update Policies: Employment policies should be regularly reviewed and updated to ensure compliance with evolving New Zealand requirements. Stay informed about any changes in employment laws, industry practices, and societal expectations. Conduct periodic audits of your policies to identify any gaps or areas for improvement. Seek feedback from employees and consult legal professionals or HR experts to ensure your policies remain robust and aligned with New Zealand's legal landscape. In conclusion... By following these five steps you can ensure your employment policies are working well for your business and as watertight as possible. With strong and well-crafted employment policies, you can foster a positive workplace culture that supports both your employees and the overall success of your business.

#yourquestionsanswered When an employee fails to turn up for work without letting you know, it can really throw a spanner in the works. This is especially challenging if it becomes a regular occurrence. So what should you do? How can absenteeism affect your business? It can hurt the company's productivity and morale, and even cost money. It can also affect the team culture, particularly if other workers are having to pick up the slack or believe that their co-worker is not made accountable for letting the team down. What should you do to prevent absenteeism? Be clear: Make sure everyone knows the rules about attendance, including how and when to let you know if they can't make it to work. This helps avoid any misunderstandings. Encourage positivity: A positive work environment is important for good attendance. Encourage teamwork, open communication, and support among employees. Follow up: If an employee is absent without a good reason, don't just let it slide. At the very least, find out why they have been absent without letting you know and let them know what your expectations are for any future absence. Be supportive: If someone is absent a lot, there may be underlying issues that are causing them stress. By being supportive and offering help, like counseling or flexible work arrangements, you can make it easier for them to come to work. Keep track: It's important to keep track of who is absent and when, so you can see if there are any patterns or issues that need to be addressed. And when it happens despite you taking action, what should you do? At this point, a few things may happen. This may become a disciplinary issue if they are breaching their employment agreement, for instance, by not giving you notice of not working. This may become a performance issue if they are not keeping up with their workload due to excessive absence. This may result in them abandoning their employment if they have been away without letting you know for a few days (depending on your contract terms). Take care that you get advice to ensure that you are acting reasonably and in line with your contract, if you decide to go down this path.

#yourquestionsanswered There are several benefits for a business using an human resources (HR) professional, including taking some of the weight off your shoulders! 1. Most importantly, more time ... to focus on the important things in your business and in your life! Less stress, more time and quick and easy answers to complex employment law questions means more time to develop your business, focus on the things your an expert at and to spend time with your family and friends. 2. Compliance with Employment Law. Employment law is constantly evolving in New Zealand, and it can be challenging for businesses to keep up with the changes. An HR professional can help ensure that the business is complying with all relevant employment laws, such as the Holidays Act, the Minimum Wage Act, and the Employment Relations Act. 3. Recruitment and Selection An HR professional can help businesses find and hire the right employees for their needs. This includes developing job descriptions, screening resumes, interviewing candidates, and conducting background checks. 4. Training and Development An HR professional can also help develop and implement training and development programs for employees. This can help improve their skills and performance, which can lead to increased productivity and profitability. 5. Employee Relations An HR professional can also help businesses manage employee relations, including dealing with grievances and conflicts in the workplace. They can also provide advice on performance management and disciplinary actions. 6. Benefits and Compensation An HR professional can help businesses develop and implement employee benefits and compensation programs. This can help attract and retain top talent, and can also help ensure that the business is offering competitive compensation packages. So how much does this cost a business? Well it depends on who is doing your HR for you. According to data from the New Zealand Human Resources Institute (HRINZ), the average cost of HR per employee in New Zealand is around NZD $2,500 to $3,500 per year. That's a lot! How much does Employer Direct cost per year? We aim to provide cost-effective, trustworthy employment law and HR support so our plans start from $200 +GST per month, no matter how many employees you have. Want unlimited one-on-one time with our consultants? That's $4,000+GST per year, no matter how many employees.

#yourquestionsanswered Whether it was because you don't think they were genuinely working during their shift or they pranged the work vehicle, proceed with caution if you are planning on deducting from your employee's wage. Is deducting from my employee's pay legal? Only if this is a legal requirement (like tax) or your employee has agreed to this deduction. What if I do it without their agreement? Even if they have caused damage, or slacked off deducting without their agreement could be unlawful, affect the employment relationship, and result in a personal grievance being raised. Why is this? Employees' wages are protected under the Wage Protection Act. Paying employees correctly and on time is a fundamental responsibility of employers. This includes paying employees on or before the pay day stated in the employment agreement. The pay day must be at least once a month and the pay must include all wages, salaries, and any other amounts that the employee is entitled to. Why is this important? Not only is this a legal requirement, but it is also a key aspect of maintaining a positive and productive work environment. Late or missed payments can cause stress and financial hardship for employees, which can negatively impact their work performance and morale. By paying employees on time, employers demonstrate their commitment to their well-being and show that they value their contributions to the organization. So what should I do to ensure that I am acting lawfully? Ensure you have specific agreement for any deductions above what you are legally required to deduct, have a robust payroll system and communicate with your employees if anything will change. In addition, if they have queries, act reasonably and respond in a timely manner.

#employerguide So now you know about the basics of a personal grievance, let's talk about why they might be raised and some scenarios. If you haven't read Part 1, we'd recommend checking this out first. An employee might raise a personal grievance in New Zealand for a variety of reasons. Here are a few examples: Unjustified dismissal This is when an employee believes that they were fired without proper justification, such as for discriminatory reasons or without following the correct disciplinary procedures. Example: Jon dropped a pallet of stock yesterday, and his supervisor told him to pick up his things and not return. Harassment This could involve verbal or physical abuse, or persistent unwanted behavior, such as bullying, racism or sexual harassment. Example: Sarah works in a restaurant and her co-worker keeps telling her that she is "too fat" to work behind the bar. Failure to follow proper employment procedures. This includes situations where an employer does not follow the correct procedures for things like redundancy or restructure, or where they do not provide the proper notice of changes to an employee's employment conditions. Example: Justin was late to work today and his boss immediately gave him a written warning. without following any process. Unpaid wages In addition to paying below minimum wage, this could include an employer withholding an employee's final pay, docking pay without agreement, or reducing an employee's pay rate without their agreement. Example: Aroha's employer keeps deducting from her pay without her consent because she scratched the work van during a delivery. It's important to note that these are just a few examples, and there are many other issues that could give rise to a personal grievance. As an employer, it's crucial to take all grievances seriously and investigate them thoroughly to find a fair and just resolution. Failure to do so may escalate a more minor niggle into an untenable situation and risk the employee feeling constructively dismissed. Want to know more about constructive dismissal? Click here