COMMENT
In this newsletter we draw your attention to updates to the Employment Relations Act (90 Day Trial Periods, Breastfeeding and Rest & Meal breaks, and Membership of Kiwi Saver) as well as an adjustment to the Minimum Wage.
A. MINIMUM WAGE ACT 1983
From 1 April 2009 new statutory minimum wage rates will apply.
1. The minimum wage for employees aged 16 and over will rise to $12.50 per hour before tax which is;
$100.00 for an 8 hour day, or
$500.00 for a 40 hour week, or
$26,000 per anum.
2. The minimum Training and New Entrant wage will rise to $10.00 per hour before tax which is:
$80.00 for an 8 hour day, or
$400.00 for a 40 hour week, or
$20,800.00 per annum
B. EMPLOYMENT RELATIONS AMENDMENT ACT 2008 (90 Day Trial Periods)
From 1 March 2009 employers with fewer than 20 employees may hire employees on a 90 day Trial Period, subject to the Trial Period being included in the Employment Agreement.
During the Trial Period the employee has the same protection regarding Pay, Conditions, Leave and Health & Safety as other employees.
An employee dismissed during a 90 day Trial Period (must be given notice before the expiry of the notice period) cannot raise a personal grievance on the grounds of an unjustified dismissal. The employee will still be able to raise a personal grievance on any of the other grounds e.g. for discrimination, harassment, or an unjustified action that disadvantaged the employee as per the Employment Relations Act.
C. EMPLOYMENT RELATIONS (Breaks & infant feeding & other matters) AMENDMENT ACT 2008
The following three amendments become law from 1 April 2009
| 1. |
Breastfeeding facilities and breaks.
Employers must ensure, so far as is reasonable and practicable, that appropriate facilities are provided in the workplace for an employee who is breastfeeding and wishes to breastfeed at work, and that appropriate breaks are provided to such an employee.
These breaks are not “paid breaks” unless the employee and employer agree that they are.
The breastfeeding breaks are additional to those detailed below under “Rest and Meal Breaks” unless the employee and employer agree the same break may be taken, at which point at least 3 breaks in an 8 hour working day will then automatically become paid breaks.
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| 2. |
Rest Breaks and Meal Breaks
Employees are entitled to and the employer must provide employees with rest breaks and meal breaks in accordance with the Act.
Employees will be entitled to:
- one paid 10-minute rest break if their work period is between two and four hours;
- one paid 10-minute rest break and one unpaid 30-minute meal break if their work period is between four and six hours;
- two paid 10-minute rest breaks and one unpaid 30-minute meal break if their work period is between six and eight hours.
Where employees work for periods longer than eight hours, these provisions automatically reapply for each succeeding work period.
Rest and Meal breaks shall be by arrangement between the employee and employer. Failing any agreement the employer shall so far as is reasonable and practicable. provide the rest & meal breaks in the middle of each work period.
Employers should be aware that many Individual and Collective Agreements provide for a paid meal break. Unless there is an agreement between the employee and employer to now vary their Employment Agreements, the meal break must continue to be paid.
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| 3. |
Membership of Kiwi Saver Scheme
Under the Personal Grievance provisions of the Employment Relations Act the following will now also apply:
An employee’s employment is adversely affected if the employee is a member of a Kiwi Saver scheme and the employer refuses or omits to offer or afford to that employee the same:
- terms of employment,
- conditions of work,
- fringe benefits or
- opportunities for training, promotion and transfer as are made to other employees with the same or substantially the same qualifications, experience and skill and employed in similar circumstances, and that the reason for doing so is because the employee is a member of a Kiwi Saver scheme.
In essence, the amendment makes it clear that an employer must not discount another benefit or opportunity for promotion etc to an employee simply because that employee is enrolled in a subsidised Kiwi Saver scheme.
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