Posted on: Apr 26, 2017
The Employment Relations (Allowing Higher Earners to Contract Out of Personal Grievance Provisions) Amendment Bill passed its first reading on 22 March 2017.
The bill seeks to amend the Employment Relations Act 2000 by allowing employees with an annual gross salary over $150,000 to contract out of the personal grievance provisions. The Bill is intended to remove the threat of personal grievance for the employer in exchange for agreed terms with the employer.
The Bill provides in detail for the making of the agreement, which must be in writing, the employee must have the benefit of independent legal advice and the lawyer who gives that advice must certify that he or she has given the employee advice explaining the effect and implications of the term before the employee signed the agreement. That lawyer must witness the employee’s signature (Clause 5, inserting New Section 102A into the Act).
You can view this Bill by clicking here. Submissions are open until 5 May 2017, submissions can be made online via the New Zealand Parliment website. We will keep you updated on any progress made with this interesting Bill.
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: Apr 26, 2017
New employment standards legislation was introduced last year to give greater protection to employees on “zero-hour” contracts, with no guarenteed hours of work. However, the changes have wider-reaching implications and in one way or another have an impact on almost all employment agreements, particularly regarding:
- Hours of work clauses and availability provisions
- Cancellation of shifts
- Recording of hours worked and breaks taken
- Restrictions on secondary employment
- Deductions from pay
While the amendment took effect on 1 April 2016, it did not, at that time, apply to employment agreements that had been entered into prior to that time — employers were effectively given one year to update those employment agreements to ensure that they comply with the new law.
The deadline for doing so was 1 April 2017. This means that employers still using old employment agreements that contain non-compliant provisions could be subject to personal grievances for unjustified disadvantage, or face penalties. As part of the legislation changes, tougher sanctions can now be imposed for a breach of employment standards. The most significant change is an increase in fines from $10,000 to $50,000 for an individual and from $20,000 to the greater of $100,000 or three times the financial gain for a company.
We have been working with many of our clients to update employment agreements and other relevant documentation, however if you’ve missed the boat on this be sure to contact one of our team members without delay!
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.
