Comprehensive Guide to NZ Employment Law Updates in 2023 and 2024
Published date | 28 February 2024 |
Subject Matter | Employment and HR |
Law Firm | LegalVision |
Author | Ms Louise Miao |
Following the change in New Zealand's government in 2023, New Zealand's employment law experienced significant change. Whether you are an employee or employer, you need to be aware of these changes. This article provides a straightforward explanation of the key updates to New Zealand's employment law. Additionally, this article discusses how you, as an employer, should be aware of your obligations.
Minimum WageThe minimum wage in New Zealand often changes. You, as an employer, must understand what your obligations are. From 1 April 2023, the minimum wage rate for employees aged 16 and over increased to $22.70 per hour. The minimum wage for new employees or trainees increased to $18.16 per hour.
These rates exclude the KiwiSaver Employer Contributions, which you should still pay your employees on top of their hourly rate. For your employees on a salary, you need to ensure their average hourly rate is more than the minimum wage. You also need to compensate them for any potential overtime they may need to complete.
Health and Safety Committees and RepresentativesImportant changes were made to the Health and Safety at Work Act (HSWA) around health and safety committees and representatives. The following changes took effect on 12 June 2023:
- If an employee seeks a health and safety representative, the company is obligated to commence an election.
- If a health and safety representative or five or more employees express the need for a health and safety committee, the company is required to establish one.
- Declining to appoint a health and safety representative or committee by claiming exemption from the 'high-risk sector or industry' classification is no longer acceptable for small businesses.
A personal grievance refers to a formal complaint or dispute raised by an employee against their employer. These grievances typically concern issues such as:
- unfair treatment;
- unjustified dismissal;
- discrimination;
- harassment; or
- breaches of employment agreements.
Previously, if you wished to raise a personal grievance, you had to do so within 90 days. However, since 12 June 2023, you have 12 months, commencing from the date of the act, to raise a personal grievance.
Notably, the extended timeframe starts from the day the sexual harassment occurred or came to the employee's notice. The later date of the two will be classified as the commencement day for the 12-month period.
Ultimately, the extended time frame...
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