Issues for agri sector employers to consider

Gemma Hogg

We acknowledge the ongoing challenges of ensuring compliance with legislation across all facets of businesses. Employment compliance is becoming increasingly topical, with legislative changes becoming more regular.

Here is an update of what to consider within the agri sector, but elements of this do apply to all businesses that employ teams.

Wet Weather Gear Allowance

Employers are required under the Health & Safety at Work Act 2015 to provide suitable personal protective equipment (PPE) to their employees. For straightforward compliance with this, employers should no longer pay an allowance to their employees to purchase their own PPE, which includes wet weather gear.

What is PPE: Protective clothing is worn specifically to help minimise risk to a worker’s health and safety while working. It can be used to protect against a specific or general workplace hazard. In the case of wet weather gear, hazards are wet weather and temperature extremes.

Businesses must provide employees with all necessary protective clothing free of charge. You cannot pass on the cost of providing necessary protective clothing to your employees or make them provide their own. This includes the cost of replacements because of wear and tear, accidental damage or loss.

Employees can choose to provide their protective clothing. If they do, the business must make sure it provides suitable protection and is compatible with any other clothing or PPE it requires them to wear or use. A worker can change their mind about providing their protective clothing at any time. If they do, they need to give the business reasonable time to arrange alternative protective clothing for them.

Seasonal Averaging

It is important that employers are paying their employees at least the minimum wage for all hours worked in each pay period. An employee is entitled to receive payment for all hours worked paid at the minimum wage ($22.70 as of April 1, 2023).

Therefore, you should look to review your employees’ salaries in comparison to the minimum wage to understand the cap of hours they can work before breaching minimum wage compliance.

If agri employers are still averaging out salaries for employees over a year, they run the risk of breaching Minimum Wage Act compliance.

Compensation for Additional Hours

If an employee has worked additional hours outside of what is stated in their employment agreements, they are entitled to be paid at least minimum wage for those additional hours worked.

Alternatives may be that you have in your employment agreements that employees receive the equivalent of their hourly rate for the additional time, or time off at another agreed time (ie, time in lieu).

It is also vital that proper wage and leave records are kept. The employer must ensure that there is correct documentation for each employee from employment agreements, and timesheets to leave records.

■   Gemma has been working in the people space over the past 10 years across industries such as health, horticulture and agriculture. She is a senior HR consultant and employment specialist. To learn more about how BDO’s business advisory services can assist you, contact the BDO Gisborne team at 06 869 1400.