The Fair Pay Agreement Act introduced sector-wide collective bargaining and was aimed at achieving minimum standards that would bind all employers across an industry or occupation. Legislation to repeal the Act is expected to be actioned by Christmas, a move supported by all three parties in their coalition agreements. Consequently, negotiations for the six fair pay agreements under way — including in the hospitality industry, commercial cleaners, early childhood education, and the grocery/ supermarket industry — will be immediately halted.
Ninety-day trial periods, initially introduced by National in 2009, are to be reinstated through introduced legislation. A bill to extend 90-day trial periods to all businesses, regardless of the number of employees, will be before a select committee for consideration by Christmas.
When the Labour government came to power in 2017, it limited the use of the regime to businesses of fewer than 20 employees. Under the new Government, the small-employer limitation is to be removed, reinstating the original regime.
National and Act have agreed to “turn their minds” to simplifying personal grievances, including removing the eligibility for remedies if the employee is at fault, and setting an income threshold above which a personal grievance could not be pursued.
Currently, an employee’s remedies are reduced where an employee has contributed to the grievance. Under the proposed changes, there would be no remedy if the employee contributed. It remains to be seen whether this will cover section 123 payments only (compensation for humiliation, loss of dignity, and injury to feelings) or if it will extend to remedies for lost wages in an unjustified dismissal claim.
Setting such an income threshold above which a personal grievance cannot be pursued essentially precludes well-remunerated employees from parts of the Employment Relations Act 2000. It is unclear what salary level the Government will consider high enough or indeed whether these changes will in fact be adopted.
The National/Act coalition agreement seeks to ensure that contractors who have explicitly signed up to a contracting arrangement cannot challenge their employment status. This would mean that those who do not have written agreements can pursue a claim they are an employee. However, where an individual has signed an independent contractor agreement, they would not be able to claim they are an employee.
There is cross–party consensus on addressing enforceable consequences to those employers found responsible for the abuse of migrant workers.
Other commitments include moderate increases to the minimum wage every year. National and Act have also promised to reform health and safety regulations. Given the recent updates of this area of law in the Health and Safety at Work Act 2015, it is unclear what aspects would be changed.
The weeks and months ahead will bring greater clarity on changes brought to our employment law landscape and the outcomes of those changes.
■ Jannine O’Meara is a Business Central employment relations consultant for Hawke’s Bay and Gisborne. She has had extensive HR experience with Fletcher Challenge Forests and most recently with Wattie’s. Contact: jannine.omeara@businesscentral.org.nz or 022 454 1979
