You will have already heard of changes to the employment law landscape in 2024.
90-day Trial Periods
As of 23 December 2023, 90-day trial periods can again be utilised by all employers. In light of this change, we recommend that employers re-familiarise themselves with trial periods to ensure they are clear on their obligations. 90-day trial periods cannot be utilised in conjunction with probationary periods and can only apply to new employees who have had an opportunity to review, take advice on and sign off on the agreement before they start with you.
Minimum Wage
From 1 April 2024, the adult minimum wage will be increasing from $22.70 to $23.15 per hour. For a full-time employee on a 40-hr week, this equates to $48,152 per annum. Living wage is currently at $26.00 per hour (as at September 2023). The Starting Out/Training minimum wage will be increased from $18.16 to $18.52 per hour. Any payroll systems and employment records will also need to reflect these wage changes.
Worker Protection Act
On 6 January 2024, the Worker Protection (Migrant and other Employees) Act 2023 (WP Act) came into effect. The WP Act aims to protect employees from exploitation. A key provision of this Act is the ten-day timeframe for employers to comply with any Labour Inspector requirement. The main role of a Labour Inspector is to ensure workplaces are upholding employment law standards.
The WP Act also disqualifies offenders convicted of migrant exploitation and/or trafficking from being able to manage or direct a company. This provision helps limit the chance of reoffending in that capacity.
Fair Pay Agreements
In December 2023, the Fair Pay Agreements Act 2022 (FPA) was repealed. The FPA meant that unions and employer associations could bargain for employment terms and conditions which would then apply to all covered employees in that particular industry or occupation. It never really got off the ground.
In short, the removal of this will not affect all workplaces and/or employees but if you think it affects your area, you may wish to seek specific advice. Collective bargaining remains available for unions and employers under the Employment Relations Act.
Other changes coming
New proposed changes are likely to Parental Leave, the Holidays Act and to the Employment Relations Act that may align us closer to legislation in Australia where it is not possible to raise a grievance once you hit a certain income level and where those employees that contribute to a grievance may be denied remedies. More on that as things develop.
If you wish advice in any employment law or HR area then contact Ross Henderson on 0272940301 or email him at ross@hrcontracting.co.nz.
