COMMENT
In this newsletter we draw your attention to updates to the Paid Parental Leave amended weekly payment, Bills before Parliament and recent analysis of personal grievance cases through the ER Service.
PAID PARENTAL LEAVE
The maximum Parental Leave payment that may be claimed through the IRD by employees on Maternity Leave has been increased to $429.74 per week from 1 July 2009
The payment is reviewed annually to take account of any increase in average weekly earnings.
MINIMUM WAGE & REMUNERATION BILL
You may recall in an earlier newsletter we advised that the Labour Government was considering this Bill which would have set a minimum hourly rate (equivalent to the minimum wage) for people providing a ‘Contract for Service’. This would have meant all non-employees (contractors) would have been legally entitled to a specific rate, irrespective of their age (i.e. even young children delivering papers to letterboxes). It could also have meant that work quoted for a set price could be charged out at a higher rate if the contractor had taken much longer to do the job.
This Bill has now been defeated under the current Government.
COMPULSORY REDUNDANCY BILL
Labour MP Darien Fenton has lodged a members Bill “The Employment Relations (Statutory Minimum Redundancy Entitlement) Amendment Bill.
The Bill proposes compulsory redundancy compensation and compulsory notice for employees with a minimum of 1 year’s continuous service at the rate of 4 weeks for the 1st year plus 2 weeks for each subsequent year up to a maximum of 26 weeks.
Many companies are currently experiencing financial difficulties without having mandatory redundancy compensation levels imposed. It is hoped that this Bill will also eventually be defeated.
PERSONAL GRIEVANCE AWARDS
Recent analysis undertaken by the EMA shows there were in excess of 520 personal grievances through the Employment Relations Service last year –a 25% increase over the previous year. Of the cases heard, 67% were found in favour of the employee. The analysis further records the NZ average compensation award was $5,067, the average costs awarded against employers was $4,349 and that half of the personal grievances taken by employees was in their first year of service with their employer.
