Month: February 2024

Our phones make us contactable at all hours, and COVID-19 has taught us that office workers can work from pretty much anywhere.  The Australian Senate recognised that this blurs the lines of “working hours” and passed the Right to Disconnect Bill.  The Bill gives employees protection to ignore calls, texts and/or emails after hours without fear of penalty.

In this article, we look at the Bill and how it stacks up against our laws in New Zealand regarding working hours.

Right to Disconnect Bill (Australia)

The Right to Disconnect Bill has been introduced in Australia in response to the growing connectedness created by phones and social media.  Under the Bill, employees can ignore any after-hours calls/emails and/or text messages from their employer, and there can be no retribution from the employer and/or detriment to an employee’s role or progression.  In fact, an employer could be fined AU$18,000 if an employee successfully raises concerns regarding an employer’s after-hours contact.

What is the situation closer to home?

While France, Italy and Belgium have taken a similar approach to Australia, we have yet to jump on this bandwagon here in Aotearoa.

Under the Employment Relations Act 2000, New Zealand employees have the right to work no more than 40 hours per week – unless otherwise agreed.  Since 2016, Zero-Hour Contracts have been prohibited – an employer can no longer require an employee to work whatever hours are required, whenever.  There must be a number of “guaranteed hours” for an employee, and any additional hours and availability requirements must be agreed and compensated.

Many salaried employees have provision in their Employment Agreement that they may be required to work additional hours to meet the demands of the business/perform their role effectively.  In these provisions, employees agree that their salary compensates them for that extra availability.

Practically speaking, work hours and expectations are best managed where there is honest and positive discussions between employers and employees from the outset of an employment relationship.  For example, some employees may seek flexibility in their working hours or arrangements to attend to personal matters during work hours.  The reasonable trade off for that may be that there is an email or two to check after hours.  Again, positive communication and reasonable expectations – in line with the values or aspirations of an organisation – can go a long way toward avoiding issues in this respect.  If there are queries in your workplace, a policy in this respect may be useful to provide that clarity.

Employment law assistance

Our Workplace Law Team is able to assist with all working hour-related employment pātai that you may have.  We are also available to discuss employment processes and any other bespoke employment queries.

Chantelle is a Senior Solicitor in our Workplace Law Team and can be contacted on 07 958 7473.

The Government has already implemented changes to Aotearoa’s employment law framework, with further changes forecast for 2024.  We set out a few of the most notable changes and what employers should be mindful of.

90-day Trial Periods

The previous Government determined that 90-day trials could only be used for businesses of 19 employees or less.  As of 23 December 2023, 90-day trial periods can again be utilised by all employers in Aotearoa.

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.

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.

Employers need to ensure that all employees are paid at least the minimum wage for every hour actually worked (regardless of any employment agreement).  Any payroll systems and employment records will also need to reflect the minimum 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 in Aotearoa.  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.  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.

Get in touch

If you need help identifying what these changes mean for you or your business or want to talk through any employment related matters, our Workplace Law Team at McCaw Lewis is well-equipped to assist you and make things that bit easier.

Tazmyn is a Solicitor in our Workplace Law Team and can be contacted on 07 958 7467.