Employment Relations Policies at a Glance

With the general election drawing close, we believe it is timely to examine the differing employment law policies of the two major political parties, with the aim of highlighting the implications for businesses and employers.

The National Party

• The introduction of a Starting –Out Wage set at 80% of the minimum wage, which will apply to certain youth in their first 6 months of employment, and to those training in a recognised industry training course
• Extending the right to request flexible working arrangements to all employees, without invoking a formal process.
• Changes to collective bargaining which include:

- Removing the “requirement to conclude” collective bargaining.

- Removing  the requirement that non-union members are employed under a collective for their first 30 days.

- Allowing employers to opt out of negotiations for a multi- employer collective agreement.

- The ability to apply partial pay reductions for partial strikes or situations of low level industrial action.

• Review of constructive dismissal and how allegations of constructive dismissal can be better managed.

The Labour Party

• Introduction of Industry Standard Agreements, which would set minimum pay and conditions in a defined “industry”.
• A Workplace Commissioner in the Employment Relations Authority to agree appropriate industry standards.
• $15 per hour minimum wage.
• Repealing the 90-day trail period, the “Hobbit Law”  and restrictions on union access.
• Amending the Holidays Act to ensure 11 days of public holidays each year, regardless of them falling on a weekend.
• Restoring reinstatement as the primary remedy when an employee has been unjustifiably dismissed.
• Strengthening of the ability to collectively bargain for a MECA.
• Extending parental leave.
• Changes to the current law regarding restructuring, including introducing the right to strike and statutory notice and compensation.

 

Bonuses and holiday pay

Question:

Should annual bonuses and other incentive payments be taken into account when calculating holiday pay?

The Law:

The Holidays Act states that annual holiday pay should be calculated on whichever is the highest figure of either  the ordinary weekly pay or the employees average weekly earnings for the year.

Ordinary weekly pay includes  productivity or incentive based payments that are a regular part of an employees pay but does not include  “one off” or exceptional payments or discretionary payments that the employer is not bound to pay the employee.

Average weekly earnings are calculated by averaging the gross annual earnings and the “gross earnings” includes all payments the employer is contractually bound to pay and expressly includes productivity or incentive payments, including commission.

The Answer:

The short answer is yes, if it is a payment which is a contractual entitlement.

 

Employment Law Essentials Workshops in the New Year

I plan to run a number of one day workshops in February and March 2012 covering Employment Law Essentials.

The workshop is perfect for new managers or as a refresher.  Numbers will be strictly limited to 10 and full information on the workshop will be forthcoming. The cost will be $325 plus GST for the day and includes lunch and materials.

Contact me in the meantime if you are interested and would like to ensure a spot.