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Employment Changes You Need To Know
Welcome to this month's newsletter! As we move into March, we have a number of important employment changes. Whether you are an employer or employee, it's crucial to stay up-to-date with developments in the job market and the latest regulations.
We'll be discussing:
➤ The recent Minimum Wage increase
➤ The 22 changes being made to the Holiday Act
➤ Upcoming networking event in Dunedin.
Otago Medical Research
We have partnered with the Otago Medical Research Foundation to fund a Summer Research Project related to human health.
Meet Yani Remoto.
She is working on a project researching the wholegrain structure in the blood glucose management of adults with type 2 diabetes.
"There is convincing evidence that wholegrain consumption protects against colorectal cancer, T2 diabetes and cardiovascular disease. Whole grain foods are recommended in New Zealand dietary guidelines. However, current definitions do not mention whole grain structure, referring only to grain constituents. Based on previous acute and short-term work, I will work on a long-term trial of wholegrain structure in T2 management. I will engage participants, collect data, and allocate them to interventions. I am particularly interested in the effects of wholegrain structure on body weight, so I will analyse the results pre- and post-intervention for body weight, BMI, and body fat percentage."
Minimum Wage Changes
The New Zealand Prime Minister has recently announced changes to the minimum wage rate, which will come into effect from April 1, 2023. The Labour party announced the changes at the start of February. The changes represent a significant increase to $22.70 per hour, an increase of $1.50 per hour from the current hourly rate of $21.20. The increase will impact approximately 222,900 New Zealand workers currently paid the minimum wage.
Holiday Act Amendments 2023
The Holidays Act 2003 is an essential piece of legislation that helps to ensure that employees in New Zealand have access to fair and reasonable entitlements for holidays and leave and that employers can meet their obligations to their employees in this regard.
Many New Zealand employers perceive the legislation to need more clarity, resulting in misinterpretation of the guidelines. Getting it wrong can result in a fine of up to $20,000 if a business is found to be non-compliant. Therefore, the government introduced a Holiday Act task force to reassess the Act, review its challenges and implement changes. 22 recommendations were approved in February 2021 by the New Zealand Government and a Bill will be introduced in 2023. They’re still in the drafting process of the formal legislation. Once settled, the Bill must go through a select committee process before becoming law. These changes will impact every New Zealand employer, no matter the size of your company. Employers must understand their obligations so that they can be compliant with confidence.
What are the main changes to the Holiday Act?
There are numerous changes to the Holiday Act, but the ones listed below will have the biggest impact on the employer.
Holiday payments will be calculated differently
Current: Paid at ordinary weekly pay based on average weekly earnings over the last 12 months.
Proposed changes: Average holiday payments will be able to be paid on weekly earnings based on the previous 13 weeks.
Family violence, bereavement, alternative days, public holidays and sick leave (FBAPS)
Current: Employees are entitled to FBAPS leave after six months of continuous employment.
Proposed Changes: Employees will be eligible for FBAPS leave from day one.
Pay as you earn
Current: A lot of misunderstanding around how this is applied to intermittent or irregular work.
Proposed changes: New recommendations will clearly define this type of employment. Pay as your earn won’t be applied to employees in fixed-term contracts of less than 12 months.
Parental Leave
Current: Employees who take parental leave receive reduced annual leave pay for 12 months once they’ve returned to work, also known as parental leave override.
Proposed changes: The override will be removed and employees will receive the total rate for annual leave.
These changes aim to reduce the confusion many New Zealand employers have felt since the Act was introduced in 2003. You can find the complete list on the Ministry of Business website for more information. Educate yourself about how these changes may impact your business and what processes you must change. Prepare ahead of time to prevent stress.
Upcoming Events
Networking for Tech Professionals
NZ Hi-Tech Awards are hosting a Hi-Tech Networking Event on April 4th, from 4 pm to 6 pm. This is a fantastic opportunity to connect with like-minded individuals in the tech community and grow your connections.