Are you up to date on these 3 changes to NZ employment law?
This year has seen several major changes to New Zealand employment law, and in some fairly sensitive areas. But don’t look at these changes as compliance boxes simply to tick - they’re opportunities to make your business better, and a chance to communicate openly and honestly with your team, winning their respect.
To help you get through the updates, we’ve laid out a clear action plan to follow below that includes what’s new, how it will impact you and how to get on top of it.
In this article:
Sick leave entitlements increase from five days to 10
Minimum wage rises to $20 per hour
Miscarriage is now grounds for bereavement leave
Are you on top of these three changes to NZ employment law?
Sick leave entitlement increases
What’s changed? As of July 24, 2021, sick leave entitlements increased to 10 days per year.
What does this mean for your team?
Existing team members (joined before 24 January, 2021)
Existing team members get their new 10 days per year when they hit the next anniversary of working for you. So, if they started on 1 September, 2020, their sick leave will increase to 10 days from 1 September, 2021 (a year later).
New team members (joined after 24 January, 2021)
For any team member who joined after 24 January, 2021, they can now access five days of sick leave when they reach their six-month employment anniversary. This is different from before! Previously they would only start accruing sick leave after six months.
These individuals then receive an extra five days, making up the full 10 days, when they reach one year of service - and for each year after that.
And carryover sick leave?
Your team can still carry over unused sick leave, up to a maximum of 20 days.
Starter tips to get compliant
Check your payroll systems and leave procedures - are they up to date? That way people can apply for what they are entitled to easily, and get paid for it in the correct manner.
Update your employment agreement templates to reflect the new entitlements.
Update your leave policies/employee handbook so that they contain the new changes. That way they remain legally accurate, and you and your team can refer back to them when needed.
Communicate! Let your team know you’re implementing these changes. This is a great opportunity for positive communication and a quick engagement boost.
Got staff whose contracts still say ‘five days’? Send them a variation letter to confirm in writing that the update has been made. We can help with that too as a part of our HR services!
Minimum wage increase
What’s changed? As of 1 April, 2021, the minimum wage rate increased to $20 per hour.
What does this mean for your team?
You’ll need to make sure that you’re compliant and treating your people well to avoid any issues here. Paying people fairly (and on time!) is one of the foundations of healthy engagement.
We know that cash flow can sometimes feel like a struggle, but paying people well should always be looked at through a lens of investing in your company’s future. Indeed, performance-related pay is associated with higher job satisfaction, organisational commitment and trust in management (HBR) - so staying on top of paying people right, from the bare minimum to what they feel they are ‘worth’, is a healthy business move.
Starter tips to get compliant
Check your current hourly pay rates. Anyone below the minimum needs a new contract ASAP.
Don’t forget salaried individuals! If anyone is earning $41,000 per annum and working over 40 hours per week, they will likely need an increase.
When making changes to someone’s pay, arrange a promotion or variation letter to confirm the new terms and conditions of their employment. Again, if you need a hand with this, we can help you get it done quickly and legally.
Bereavement leave after miscarriage
What’s changed? Your people are now entitled to bereavement leave if they suffer a miscarriage.
What does this mean for your team?
Don’t look at this as just another compliance requirement. Showing you care about the health and wellbeing of your team members (and their families) is a huge opportunity to build a positive, trusting relationship with your people.
Anyone applying for bereavement leave is going through a difficult time. Take care of them, work with their needs, and it will speak volumes not just to those involved, but everyone in the company.
Starter tips to get compliant
Update your policies and systems to make sure you are equipped to support people should this unfortunate situation occur.
Check your policies and employee handbook to make sure the new updates are included.
Let your team know you’ve made the update. Again, showing you care about them and have made a plan for support and continuity in tough times will go a long way to build trust and reassurance.
Make sure you (and your other leaders) know how you will all handle this with sensitivity and respect. How will you show compassion? How will you arrange cover? It should all be written down and thoughtfully considered so there can be no deviation in the level of respect owed to staff applying for bereavement leave.
Need help getting it right? We’re here for you.
In each of the situations we’ve detailed above, you have an opportunity to show your team you care about them and win their engagement. But, that means getting it right and staying on top of (and ahead of!) your compliance obligations.
At Openleaf, we believe HR is called ‘human’ resources for a reason - people want to be treated like people. We can deliver tailored services in all aspects of HR, no matter how sensitive the area. Whether you need little bits of help or someone to handle the entire thing, we’re here for you.
To find out more about what we can do for your unique needs, get in touch with us today.
Or learn more about how Openleaf gets results: Our Methodology