As an employer or people manager in New Zealand, you may wonder whether your staff know more about employment law than you do. It’s an important question, as being knowledgeable about employment law is essential for running a successful business and maintaining a positive workplace culture. In this article, we’ll explore some key aspects of New Zealand’s employment law and provide insights into what managers should know to comply with legal requirements.
New Zealand has a strong legal framework governing employment, with various laws and regulations that employers must adhere to. The primary legislation governing employment in New Zealand is the Employment Relations Act 2000 (ERA), which sets out the rights and obligations of employers and employees. The ERA covers a wide range of topics, including minimum wage rates, working hours, leave entitlements, and termination of employment.
Other important employment laws in New Zealand include the Holidays Act 2003, the Minimum Wage Act 1983, and the Health and Safety at Work Act 2015. These laws set out specific requirements relating to holiday entitlements, minimum wage rates, and health and safety in the workplace.
While your staff may understand some aspects of employment law, it is ultimately your responsibility as a manager to ensure that your business complies with all legal requirements. This means staying up-to-date with changes to employment law, ensuring that your employment agreements are compliant, and handling any employment disputes in accordance with the law.
However, it’s worth noting that many employees in New Zealand are increasingly aware of their rights and obligations under employment law. This is partly due to the work of advocacy groups such as Unions and the Ministry of Business, Innovation and Employment (MBIE), which provide information and support to employees on employment law issues. As a result of this increase in information and the ability to find free information and access free advice, your staff will likely be more knowledgeable about employment law than employees in previous generations. Some social media platforms, such as Facebook and TikTok, also have videos, chat threads and influencers spreading information, which can sometimes be misleading. This emphasises the importance for managers to ensure they are familiar with common employment law issues, meet legal requirements, and provide further clarity to employees where needed.
So, what are some of the most common employment law issues managers need to be aware of in New Zealand? Here are a few examples.
Minimum Wage Rates: The Minimum Wage Act 1983 sets out minimum wage rates for different industries in New Zealand. As a manager, it’s important to ensure that you pay your employees at least the minimum wage rate and consider what is fair and reasonable based on qualification, experience and occupation type. Further, the Fair Pay Agreement Act 2022 now sets out bargaining requirements for industry or occupation specific pay rates. It is important to be aware if this impacts any industries or occupations that apply to you.
Holiday Entitlements: The Holidays Act 2003 sets out minimum entitlements for annual leave, public holidays, and sick leave. As a manager, you need to ensure that your employees are receiving the correct amount of leave entitlements and that you are following the correct processes for approving leave requests. This legislation is to be potentially replaced due to the 2018 review of the Holidays Act, so keep your eyes peeled.
Discrimination and Harassment: The Human Rights Act 1993 prohibits discrimination and harassment based on certain grounds, such as race, gender, and sexual orientation. As a manager, you need to ensure your workplace is free from discrimination and harassment and that you have appropriate policies and procedures in place to deal with any complaints.
Termination of Employment: The ERA sets out the requirements for terminating employment, including providing notice, paying out any outstanding entitlements, having a good reason to dismiss and following a fair process. As a manager, you must ensure that you follow these requirements when terminating an employee’s employment.
In light of this, you may ask: What should I be doing as an Employer or Manager? You can do several things to ensure that you comply with employment law and stay up-to-date with any changes. Here are a few tips:
- Educate Yourself: Take the time to familiarise yourself with New Zealand’s employment laws and regulations. Attend training courses, connect with other employers or people managers, read up on the latest legislation, and seek advice from legal experts if necessary.
- Review Your Employment Agreements: Ensure your employment agreements are up-to-date and compliant with the law. This includes providing your employees with written contracts that clearly outline their rights and obligations, including their hours of work, pay rates, leave entitlements, and termination clauses.
- Implement Policies and Procedures: Develop and implement policies and procedures that reflect your obligations under employment law. This includes policies on health and safety, anti-discrimination and harassment, and grievance procedures.
- Keep Accurate Records: Maintain accurate records of your employees’ hours of work, leave entitlements, and pay rates. This will help you ensure that you are complying with employment law requirements and can help you avoid disputes with employees.
- Seek Advice: If you are unsure about any aspect of employment law, seek advice from a workplace relations specialist. This can help you avoid potential legal issues and ensure you comply with all legal requirements.
So, whilst it’s possible some employees have a better understanding of certain aspects of employment law than their managers, ultimately, it is the manager’s responsibility to ensure that their business complies with all legal requirements. This means staying up-to-date with changes to employment law, ensuring that employment agreements are compliant, and handling any employment disputes in accordance with the law. By following these steps, employers and managers can ensure that they are creating a positive workplace culture that complies with employment law requirements and that their staff are treated fairly and equitably.
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