Employer Advice | Employment Relations Act | Employsure Guides NZ
The Employment Relations Amendment Act , passed in how the changes could affect you, visit the Employment New Zealand website. Change to the Employment Relations Act will affect your business. Search Icon You can contact Emma at [email protected] The Employment Relations Act states that parties to an employment Good faith applies in all aspects of an employment relationship – including.
Clarifying that parties will be able to negotiate terms and conditions that are more favourable than those included in the collective agreement during the "day period" when employees who are not union members are given the same terms and conditions they would receive if they were part of a collective agreement.
With respect to trial periods, specifying that "small-to-medium sized employers" are employers with fewer than 20 employees at the beginning of the day on which the relevant employment agreement is entered.
In relation to the prescribed rest and meal break requirements, specifying that an employer engaged in the protection of New Zealand's national security may be exempt from providing the prescribed rest and meal breaks.
New Zealand Journal of Employment Relations
Clarifying the way financial compensation in lieu of breaks should be calculated for employees that are paid variable rates. Inserting a provision allowing the Minister to recommend additions, deletions, or amendments to the categories of "vulnerable employees". Inserting a definition of wages which clarifies that wages include the amounts payable for time, piece work or commission. Clarifying that minor or technical errors will not invalidate strike notices.
You can read the Committee's report here. The Bill is now set to progress to a second reading where the amendments recommended by the Committee will be voted on by Parliament. If the Bill is passed into legislation, the shift in balance towards greater employee and union rights will raise challenges for many employers. For example, the effects of a more rigid rest and meal break regime together with new calculations for how breaks are paid may cause difficulties for some.
Key legislation: The Employment Relations Act 2000
In light of this, employers of more than 20 people need to be aware that there will be greater risk of employees bringing unfair dismissal claims. Collective Bargaining The Bill will also implement changes to collective bargaining.
There will also be a requirement to include pay rates in collective agreements, and a requirement for employers to pass on information about unions to prospective employees. Rest and Meal Breaks Another change will be to restore guaranteed rest and meal breaks for employees.
Currently, employers and employees are encouraged to bargain in good faith for the timing and length of rest and meal breaks.
The Bill seeks to return a more rigid approach to rest and meal breaks. The Bill is ultimately designed to give unions more power and take away some of the negotiating power employers have had with their employees in the past.
Additional Changes There are also a raft of other changes, including: While this shake up will change the balance of power between employers and employees, many of these changes may prove difficult for employers.
Common pitfalls will be not adhering to the new changes as they have not been made aware to you. This is why it is vital for employers to be aware of any implications the Bill may have on their own business.