Employment Update - August 2023

PEOPLE • BUSINESS • SUCCESS
11/09/202
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1
EMPLOYMENT UPDATE
August 2023

INTRODUCTIONS
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11/09/2023

HOLIDAYS ACT
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11/09/2023

HOLIDAY'S ACT UPDATE
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11/09/2023
Recap
• 2018 – Govt announced review of HA
• Taskforce appointed, review undertaken, 22
recommendations made & accepted
Next
• Bill still under development
• Won't be tabled before Election
In the mean time.........
• Check compliance with current HA
• Obligation to meet HA remains (and will remain)

HOLIDAY'S ACT UPDATE
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If you want to understand more
about common issues, or check the
accuracy of your payroll processes,
contact us

FAIR PAY AGREEMENTS
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FAIR PAY AGREEMENTS
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11/09/2023
Status
• 7 approved and underway
FPA Union Status
Bus Drivers/Coach Drivers &
cleaners - Urban
First Union Bargaining
Hospitality Unite Initiated
Grocery/Supermarket First Union Initiated
Security Officer & Guards E tu Initiated
Commercial Cleaners E tu Initiated
Early Childhood education NZEI Initiated
Waterside Workers Maritime union Approved

FAIR PAY AGREEMENTS
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How could it affect your business?
• Mandatory terms negotiated in bargaining
• Minimum T&Cs may apply if a role has 25% of work covered in an FPA
• Check if any of your roles are, or might be covered
• Workforce candidate pool
Contact us if you have any questions or need help with the process
Don’t ignore it

EMPLOYEES VS
CONTRACTORS
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EMPLOYER VS CONTRACTORS
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• Change in employment courts has seen an increase
in contractor rights.
• Decisions are being made in favour of the
contractor (Uber & Gloriavale)
• 5 Tests that are used
• How ‘key’ they are to your business?
• Control & freedom to work, when, where and how
• Are they in business to make their own profit?
• What is the intention of the relationship
• Employees have 6-years to raise a wage claim
(wages, holidays, sick and annual leave, public
holidays, KiwiSaver, use of money interest)

ACCREDITED EMPLOYER
OBLIGATIONS
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ACCREDITED EMPLOYER WORK VISA
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11/09/2023
AEWV employers agreed to;
• Have good work practices
• Idea - Use a handbook to show how we work around here
• Provide settlement information
• Idea – Put a section inside the handbook or information sheet
• Complete training models within 30 days
• Employee during work time
• Everyone making recruitment decisions and who is in control of
immigrant/s
• Keep proof this has been completed
INZ is auditing and will require proof of the above when you
reapply for AEWV

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RESTRUCTURING
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RESTRUCTURING & REDUNDANCIES
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11/09/2023
Restructure:
• Focus is on the role or job
Redundancies:
• Focus is on the person
• Another way of ending employment
• Done when a role is surplus to requirements
• Often come at the end of a restructure (but not
always)

WHAT A RESTRUCTURE IS NOT
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11/09/2023
An answer to the troublesome employee!
• Sham restructures are dangerous.
• ERA picks them up and will punish employers
for them.
• Mixing performance issues and restructures is
very risky.

TWO KEY INGREDIENTS
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1. The rationale or ‘story’ behind the restructure
• The ‘why’ behind the proposal.
• Usually a problem to be solved or an
opportunity to be grabbed.
2. Good process
• Quite prescriptive
• Step by step
• Pitfalls though…

THE RATIONALE OR ‘STORY’
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Set it all out on paper
Good Comms from the outset are crucial
• Can be a challenging message to deliver
• Meet face to face as well as in writing
• Be aware of the knowledge gap/delay when
presenting the proposal
Proposal document must:
• Contain sufficient relevant information
• Be clear and understandable

THE KNOWLEDGE GAP / DELAY
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0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10 11
KNOWLEDGE
TIME
Restructuring understanding.
Employer Employee

PRESENTING THE PROPOSAL
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• Present the proposal calmly and sensitively.
• Face to face and in writing
• Be prepared for a wide variety of reactions

THE PROCESS
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Quite a linear process
• Present the proposal
• Give staff opportunity to consider it and give
feedback (Consultation)
• Receive and genuinely consider feedback
• Make decisions
• Communicate decisions
• Implement decisions

TWO ‘WAR STORY’ CASES
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11/09/2023
Janes v FENZ [Redeployment, failures with info]
• FENZ failed to provide Janes with info in a timely manner
• FENZ set up an overly complex process around
redeployment
• FENZ was obstructive and uncommunicative
LESSONS?
• MUST consider redeployment and do it well
• Share information openly, honestly and in a timely
manner.

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Haddad v NZ Steel [Poor consultation]
• Two phase restructure
• NZ Steel failed to consult Haddad on phase 1
• NZ Steel failed to keep Haddad in the loop with
respect to redeployment opportunities
• The ‘dumb’ discoverable email
• Unjustifiable dismissal
• EC ordered $25,000 comp and 14 months lost wages.

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LESSONS?
• Take care with consultation and do it well.
• Make sure your internal comms are consistent with a
fair and good faith restructuring process.
• Ensure you consider redeployment options genuinely
and that you do this well.

KEY TAKE AWAYS?
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• On the face of it restructures are simple, but
there is devil in the detail.
• Be wary of the ‘sham’ restructure (Don’t do it)
• Restructures focus on roles
• Redundancies focus on people
• As usual, good communication is crucial at all
steps
• Don’t rush, take the time to do it well and safely.
Finally, give us a call. We are ready to help in any way
we can to keep you safe.

ANY QUESTIONS
Thank you for your time today
For more information, visit our
website at: growhr.co.nz or email
team@growhr.co.nz

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