In this month’s issue, we’ll take a look at upcoming public holidays, changes to the minimum wage, paid parental and bereavement leave.
Minimum wage – are you ready?
The government has confirmed that the adult minimum wage will increase, from $18.90 to $20.00 per hour on 1 April 2021. For an employee who works forty hours a week, the minimum wage rise to $20.00 per hour means that they’ll earn an additional $44.00 per week before taxes.
The starting-out and training minimum wage rates will also increase on 1 April 2021, from $15.12 to $16.00 per hour.
As an employer, you need to ensure your payroll systems and processes are updated. This is also a good opportunity to review employment agreements.
All employers and employees should also take note of the minimum wage changes, as it sets a new relative benchmark for pay negotiations.
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Are you planning on opening your business over Easter and ANZAC weekends?
In 2021 the public holidays fall on these dates (all in April):
Good Friday – 2 April
Easter Monday – 5 April
ANZAC Day – Sunday 25 April
These public holiday weekends may impact your employer obligations to staff and your ability to trade.
Employees don’t have to agree to work on Good Friday, Easter Monday or Anzac Day, unless these are days that the employee would have normally worked, and their employment contract says they have to work on the public holidays. This year, ANZAC Day falls on a Sunday, therefore it is Mondayised.
Shops cannot open on Good Friday, Easter Sunday or ANZAC Day (25 April) until 1pm. However, there are some exceptions such as dairies, service stations, take away bars, restaurants cafes, souvenir stores, and tourist resorts or if there is a local council trading policy.
To find out more about your obligations on staff working hours, paying employees, and legal trading days please follow the link: https://www.employment.govt.nz/about/news-and-updates/planning-to-open-your-business-easter-anzac-holidays/
Changes to paid parental leave.
Inland Revenue have made some changes to the paid parental leave to help simplify the process for both employees and their employers.
To find out how this might impact you or your staff follow the link below:
Changes to paid bereavement leave.
New Zealand has passed a bill offering paid bereavement leave for couples who have a miscarriage or a stillborn child.
We are the second country in the world to offer paid leave, and the bill also applies to parents having a child through adoption or surrogacy.
The new law gives employees three days of paid leave, enabling them to take time off without using their sick leave allowance. Given these changes, now is a good time to review your employment agreements.