Introduction
In this issue, we’ll take a look at changes to employment law, including minimum and median wage changes, changes to 90-day Trial law, and repealing of the Fair Pay Act. We will also look into the recent speech made by workplace relations minister Brooke van Velden regarding a review of the Health and Safety at Work Act. There are a couple of opinion pieces on the use of AI in the workplace and workplace policies. We end with a few quirky pieces of information about me.
Whatever you’re doing this weekend, I hope it fills you with joy and that you’re warm and cosy!
Thanks as always for your support,
Jaime
“Objectivity.
Empathy.
Integrity.
This is how we partner with our clients”
Employment Law Update – What You Need To Know
The last 18 months (or so) have seen some significant changes to employment law in New Zealand – an ever-evolving machine! Even though it can be overwhelming, organisations must stay informed about the latest updates that have the potential to impact the employment relationship. Here’s a brief (but not exhaustive) summary of some of the more recent developments you should be aware of:
1. Minimum Wage Increase
Effective April 1, 2024, the minimum wage in New Zealand was raised. It went from $22.70 per hour to $23.15 per hour. This change underscores the government’s ongoing commitment to ensuring fair compensation for workers across various industries.
2. Median Wage Increases for Work Visa Categories
For individuals under work visa categories, recent adjustments to median wage were also implemented in late February – wages went from $29.66 per hour to $31.61 per hour (for the ‘Skilled Migrant’ category). It’s important for employers sponsoring visa holders to stay updated on these changes to ensure compliance with immigration regulations.
3. The End of Fair Pay Agreements
The short-lived era of Fair Pay Agreements came to an end earlier this year. Whilst this legislation intended to promote fair wages and working conditions across industries, its design and implementation were divisive and problematic, and its cessation signalled a shift in approach towards labour relations in New Zealand.
4. 90-Day Trials Open to All Businesses
Previously restricted to small businesses (19 or fewer employees – including casual staff), the use of 90-day trial periods for new employees is now open to all organisations. This change provides all employers with greater flexibility in managing their workforce while ensuring compliance with employment regulations. However, there are pitfalls an employer needs to consider before implementing Trial Periods, such as ensuring employees are actually “new”, that the clause is written well, and that the agreement is signed before employment is commenced.
5. Personal Grievances Related to Sexual Harassment
Recent legislation updates emphasised the importance of addressing issues related to sexual harassment in the workplace. Claims for raising sexual harassment Personal Grievances went from 90 days to 12 months. This shift emphasises that employers must prioritise creating a safe and respectful work environment and take appropriate action to address concerns related to harassment.
With all these changes, the key message is that employers need to remain proactive in understanding employment law and that all parties should act in good faith. Whilst employment law can be frustrating to navigate, it’s there for a reason: to promote a working environment that is fair, equitable, and conducive to the well-being of all.
Evaluating Health and Safety Regulations: A Look at the Decade
In a recent speech, Brooke van Velden, Workplace Minister, highlighted a significant milestone: the Health and Safety at Work Act 2015 is approaching its 10th anniversary. This milestone marks an important reflection on NZ Health & Safety legislation. Current work on the Act puts a question mark over whether the current legislation remains fit for purpose in today’s ever-changing work environment.
With the labour landscape continuously evolving, Brooke Van Velden emphasized the necessity of assessing the effectiveness and relevance of existing health and safety regulations. She reflected that as workplaces adapt to new technologies, work practices, and emerging risks, it’s imperative to ensure that legislation adequately addresses modern challenges.
One of Brooke van Velden’s priority policies in her term will be to assess and review what needs to change in legislation for it to be practicable. This review signals an opportunity to enhance the protection and well-being of workers across New Zealand. It opens the door for stakeholders to provide input on areas where the legislation may need refinement or improvement to address emerging health and safety concerns better. Policymakers want to ensure that legislation remains responsive to the needs of workers and employers alike, ultimately contributing to a safer and more sustainable work environment.
As the government prepares to evaluate the Health and Safety at Work Act 2015, I will keep a keen eye on developments and I will update as I learn more.
Ensure Your Employment Agreements Are Up to Date
In light of recent updates to employment law, it’s critical to ensure that employment agreements are current and compliant. If it’s been a year or more since your agreements were last reviewed or updated, now is the perfect time to take action.
I strongly recommend that all employers, regardless of the organization’s size, review and update their employment agreements to reflect the latest legal requirements and best practices. Keeping your agreements up to date not only ensures legal compliance but also helps mitigate potential risks and disputes in the future.
If you’re unsure whether your employment agreements need an update or if you have any questions about recent changes in employment law, please reach out to me for assistance.
When to use policies
(vs putting clauses in an employment agreement)
I often hear my clients say, “We need a new policy written!” My first question is usually, “Why? Tell me why you think you need a separate policy.”
Implementing policies can seem like a great idea for an organisation and would indicate that progress is being made in its growth strategy. However, I recommend erring on the side of caution when considering new policies.
When it comes to establishing clear expectations and guidelines for your employees, a common question arises: should specific rules and procedures be outlined in policies or included as clauses in employment agreements? It’s important to understand the distinction between these two approaches before deciding your next steps.
Policies serve as comprehensive frameworks that outline the standards and procedures governing various aspects of employment, such as a Code of Conduct, Health and Safety, and Technology. They offer flexibility, allowing for updates as regulations evolve. This flexibility makes policies ideal for addressing broad organisational needs and promoting consistency across the workforce.
On the other hand, clauses in employment agreements provide specific terms and conditions governing the employment relationship between the employer and the employee. These clauses typically address matters such as remuneration, hours of work, probationary periods, and confidentiality agreements.
While employment agreements offer a more contractual approach, they may lack the flexibility needed to accommodate changes in workplace policies and regulations over time. This is because you need an employee’s agreement before changing the terms of an employment agreement. In contrast, you generally don’t need to get agreement on policy changes. However, employers must ensure that employees are aware of existing policies and regularly revisit them. If your team isn’t fully aware of policies, you can’t rely on their existence to enforce rules and laws.
So, when should you use policies versus clauses in employment agreements? Policies are best suited for overarching guidelines and procedures that may require frequent updates or flexibility, while clauses in employment agreements should focus on establishing clear and non-negotiable terms of employment.
How do you choose? As a small business owner, carefully consider your specific needs, industry regulations, and the nature of your workforce when determining the most appropriate approach. Whether you choose to implement policies within employment agreements, as separate policies, or a combination of both, the key is to ensure that your employees understand the distinction between the two.
If you’re unsure about which approach is best for your business or need assistance in drafting policies or employment agreements, don’t hesitate to reach out to me.
Navigating AI in Business: Crafting Clear Policies
As AI becomes more prevalent, establishing clear policies on its usage is critical. It’s impracticable to think we can get away from the use of AI (it can be an amazing tool! – including helping with newsletters 😉 – but policies are essential to cover data privacy, transparency, fairness, and accountability.
By setting guidelines, you can ensure that AI is used ethically in your workplace and that risk is mitigated.
Consider these key components when drafting a workplace policy for AI:
Data Privacy and Security: Consider how you will protect sensitive data and comply with Privacy Act regulations.
Transparency and Accountability: How you can document algorithms and data sources to ensure staff accountability.
Fairness and Equity: How you can mitigate biases and ensure fairness in AI-driven processes.
Employee Training: How you can educate employees on AI technologies and ethical implications.
Monitoring and Evaluation: What you will do to regularly assess AI impact and make necessary adjustments.
For assistance in crafting your AI usage policy, reach out to me (or to your AI programme!) – but please remember that AI is limited in its ability, and you should never forgo a quick legal eagle eye to mitigate your risk fully.
Fun facts about Jaime
Why did I choose the name ‘Marbles’?
I had been in HR for over a decade, and I was a Practice Manager for a dental practice. I was also studying for my undergraduate degrees (Bachelor of Business in HR Management and Bachelor of Arts in Psychology). I wanted to establish a business where I could become self-employed and be with my daughter a lot more. I realised that so many small businesses were ‘losing their marbles’ because of HR and employment law, and that’s how Marbles was born.
Fun fact – Marbles’ also turns 9 this Sunday! I incorporated my company on 26 May 2015!
What was my first job?
I worked in an ice cream parlour at Victoria Park Market when I was 14 – which was lethal as I got all the free ice cream I wanted.
What is my favourite quote?
“This too shall pass” – it’s also one of my many tattoos.
What is my favourite food?
Dinners my Mum used to make for me: Mac n Cheese, Mashed Potatoes; Chicken Casserole. Comfort food.
What is my favourite piece of technology?
I love all sorts of tech – new devices, new apps – I’m like a magpie with shiny things. I also love fiddling around with AI – It can be amazing for helping create a framework. AI is not something we should be scared of. We just need to ensure the integrity of our own work and be able to defend our own ideas. This is particularly important for me in the work I do, but also as a Master’s student (writing my thesis). My work needs to be original – but AI can be an incredible help to me when I need a prompt to help me get on my way.
What is one thing I could not live without?
Music. I have Spotify on for about 10-12 hours a day. I listen to thousands of hours of music every year. I am very eclectic, and my musical taste is quite polarising!
What is my current Netflix binge?
I just finished ‘Baby Reindeer’, as it seems the rest of the world has also done, but I also love foreign comedies and dramas – French, Turkish, Hindi, Palestinian – I love them all because I find that humans aren’t inherently different, we are all dealing with the same human conditions.
If I could have one wish, what would it be?
The best wish would be an altruistic wish – but humans are also inherently selfish, so I would be honest and say that my wishes would change on any given day. For now, I have my ‘lot’ and am blessed with what I have. I have no specific wish today.