The Labour government came in with a long to-do list of changes to employment law. In this article co-authored by Shima Grice and Lucy Nolan we look at what has changed and what is still to come.
2019
The year 2019 brought with it a raft of employment law changes. These included:
- Minimum wage increased to $17.70 an hour.
- Domestic violence leave was introduced.
- Set rest and meal breaks were re-introduced.
The use of 90-day trial periods was limited to businesses with fewer than 20 employees.
- Employees in specified ‘vulnerable industries’ gained the ability to transfer their existing terms of employment upon restructure of their work, regardless of the size of their employer.
- The “30-day rule”, where a collective agreement automatically applies to an employee on individual terms, was reinstated.
- It became obligatory to include pay rates in collective agreements.
- Employers must now give union delegates reasonable time to carry out their functions within working hours and to pay them at their usual pay rate.
- Employers became obliged to pass on information about the role and function of unions to potential employees.
What do we know is coming in 2020?
- Minimum wage will increase to $18.90 an hour on 1 April.
- Paid parental leave will increase to 26 weeks for parents of babies due on or after 1 July 2020.
- The Employment Relations (Triangular Employment) Amendment Act 2019 will come into force by 28 June. This is where an employee’s employer works for a third party, and that third party directly exercises control over the employee. Employees will be able to apply to join a controlling third party to an existing personal grievance against their employer. It will also permit an employer to apply to join a controlling third party to a personal grievance it is facing.
What else might change?
- Changes to independent contracting relationships. A discussion paper on better protections for contractors was published on 26 November 2019. It is open for feedback until 14 February 2020. It considers:
- Deterring employers from classifying workers as contractors and not employees
- Making it easier for workers to access a determination of their employment status
- Changing who is an employee under New Zealand law
- Enhancing protections for contractors without making them employees.
- There won’t be any relief for employers grappling with the Holidays Act. The taskforce appointed to review the Act delayed its report, and Workplace Relations Minister Iain Lees-Galloway has said that a new regime is likely to be several years away.
- The Fair Pay Agreement Working Group has reported back, with several recommendations, but we understand that these are not expected to be implemented this term either.
If you would like to discuss how to ensure your comply with any changes coming in 2020 contact Lucy Nolan or Shima Grice.