Posted on: Oct 27, 2015

The Government has introduced the Employment Standards Legislation Bill. In essence, this is to provide harsher sanctions for exploitative employment practices involving breach of statutory minima relating to wages and holidays. Greater investigative powers for Labour Inspectors and employment institutions will assist in bringing perpetrators to account.

At present, the maximum fine is $10,000 for an individual and $20,000 for a company. For the most serious breaches, the plan is to raise these to $50,000 for an individual and, for a company, to the greater of (1) $100,000 or (2) three times the company’s financial gain. The Employment Court and the Employment Relations Authority will be able to publicly name employers who breach employment standards.

Persons such as directors, senior managers, legal advisers and other corporate entities will be held accountable for breaches if they are knowingly and intentionally involved when an employer breaks the law, even if the actual employer has ceased to exist. The Ministry of Business, Innovation and Employment says that the law could catch a senior payroll manager who has set up a payroll system in such a way as to deny employees some holiday entitlements, though it wouldn’t catch the junior clerk.

Labour Inspectors will be equipped with powers to request business information relevant to their enquiries and regulators will have more information sharing powers generally. Though this cannot breach the Privacy Act, an “Approved Information Sharing Agreement” between labour inspectors and another regulator may permit a dispensation from the Privacy Act principles.

Clear-cut breaches of the obligations to keep employment agreements and employment records and to produce them on request can be punished by the imposition by a labour inspector of infringement fees. On the whole, more major breaches of employment standards will be fast-tracked to the Employment Relations Authority and the Employment Court, without the necessity (as is currently the case) for prior mediation.

 

Disclaimer

This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.

Posted on: Oct 27, 2015

October 21, 2015
The Human Rights Commission has welcomed plans to set up a working group to develop agreed principles on pay equity for all sectors of the economy.

Employers and unions agreed this week to a Government proposal to set up a Joint Working Group to develop principles to deal with pay equity claims under the Equal Pay Act.

“This is an historic first step to achieving a zero gender pay gap. Just as we led the world in women winning the right to vote in 1893, we can also lead the world in pay equity,” said EEO Commissioner Dr Jackie Blue.

“Pay equity where jobs are valued according to skill, effort and responsibility will benefit generations of women, their families, community and economy.”

In 2012, the Human Rights Commission’s Caring Counts Report highlighted pay inequity in the aged care workforce.

“The Commission congratulates all individuals, organisations and unions for continuing to fight for the right of New Zealand women to be paid fairly for the work they do,” said Dr Blue.

“We also pay tribute to employers and to Government for listening and responding positively to continued calls for pay equity.  The working group is a milestone for New Zealand women and one we can all take pride in.”

Source: Human Rights Commission

 

Disclaimer

This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.