Happy Friday everyone!
I do love Fridays – they signal a moment to pause and reflect. Lately, I’ve been thinking deeply about change. Just as the seasons shift and autumn sets in, the workplace continues to evolve at a relentless pace. With new challenges and updates coming at us fast, it can feel overwhelming to keep up.
That’s why I’ve focused this edition on breaking down some of the most relevant workplace changes that may be impacting you. I’ve explored the growing role of AI in the workplace – what it means for businesses and how to harness its potential responsibly. I’ve also covered minimum wage adjustments and the latest changes to Personal Grievance laws in 2025, ensuring you stay informed and prepared.
I truly believe that knowledge is power, and I’m here to make sure you have what you need to keep your business running smoothly.
So, grab a coffee, settle in, and enjoy my insights into the latest developments in HR and employment relations.
Warm regards for the months ahead, Jaime
Minimum Pay Rise – 1 April 2025
New Zealand’s minimum wages have increased. Is your business ready for this change?
From 1 April 2025, the adult minimum wage increased from $23.15 to $23.50 per hour, and the starting-out and training minimum wage increased to $18.80 per hour. Around 141,900 New Zealand workers who are currently earning between the current and new minimum wage rates are now entitled to get an increase in their pay packets because of the change in the minimum wage. Whilst this small 1.5% increase will balance fair wages in our current economic climate, it can have a significant impact on your business.
If you haven’t already, it’s time to action this change. Here are some helpful tips to assist:
- Ensure that your payroll software reflects the new rates to maintain compliance.
- Inform staff (who are earning the minimum wage) about the change, this should be a formal notification in writing.
- Assess how the wage increase will impact your financials, including expenses like ACC levies, KiwiSaver contributions, and holiday pay.
- Review your pricing strategy to ensure it aligns with the increased wage expenses.
If you would like to upskill on all minimum wage obligations, there are some great tools available here.
“Just like leaves changing color, embrace the opportunities for growth this autumn brings“
Company Culture: When did you last review yours?
Culture reviews are an important (but often overlooked tool) which can help businesses have a clear picture of how their company values are reflected in daily operations and whether employees feel engaged, motivated, and supported. Honest feedback from the team can help you identify strengths to celebrate and identify areas that may need improvement.
From my experience, conducting a company culture review is an important step in ensuring your workplace environment supports both business success and employee well-being. For employees, a culture review can signal that their voices matter and create a sense of inclusion and belonging. When people feel heard and valued, job satisfaction increases, and productivity tends to follow. Addressing any gaps, such as communication issues, lack of recognition, or work-life balance challenges, can lead to a healthier, more positive work environment where people want to stay and grow.
From a business perspective, a strong workplace culture is a key driver of performance and retention. A positive and aligned culture attracts top talent, reduces turnover, and improves overall team collaboration. Businesses that regularly assess and refine their culture can create a competitive edge, and ensure they remain a place that people want to work at.
Changes to Personal Grievance Laws in 2025
The Government is making key changes to the Employment Relations Act 2000 to provide businesses more flexibility in managing high-earning employees and Personal Grievances. A new $180,000 income threshold will mean employees earning above this amount can no longer raise Unjustified Dismissal claims unless agreed upon in their contracts. The Government have designed this change to the Act to help businesses ensure they have the right fit for senior leadership and specialist roles without the risk of costly legal disputes. However, important to note is that that employees can still negotiate their own dismissal protections if they choose to.
Approximately 3.4% of the workforce will be affected by the $180,000 income threshold, which will be reviewed annually by the Government. As these reforms progress through the Employment Relations Amendment Bill in 2025, businesses should review their employment contracts to ensure they align with the new framework and provide clear dismissal procedures.
In addition to this, new measures will strengthen employee accountability in Personal Grievance cases. Currently, employees who engage in Serious Misconduct, such as fraud, theft, or violence, can still receive financial compensation through Personal Grievances (if they have grievances for unjustified dismissal or unjustified disadvantage which are proven). The Government plans to change this by removing all remedies for Serious Misconduct and limiting compensation if the employee’s behaviour contributed to the issue. These reforms are aimed to reduce financial risks for employers and prevent Personal Grievance claims from being misused.
The changes also give the Employment Relations Authority and Employment Court more discretion in awarding compensation. Employers will be protected from unfair financial penalties, with remedy reductions of up to 100% in cases where an employee’s actions contributed to their dismissal. Additionally, the threshold for procedural errors will be increased, which will hopefully work to reduce uncertainty for businesses when dealing with underperformance or misconduct.
This change to law means that employers should consider planning for updates to their employment agreements in the coming months.
Tough conversations are never easy; here’s some tips to make them easier
Giving difficult feedback is never easy. Over the years, I have had hundreds of difficult conversations on behalf of my clients. I’ve found that approaching the conversation with empathy and clarity can make a big difference. Here’s some of my tips on how to have the ‘big chats’.
- Approaching the conversation with empathy and clarity can make a big difference. Start by creating a comfortable environment where your employee feels safe and respected. Acknowledge their strengths first to set a positive tone, then transition into the specific issue by focusing on behaviours rather than personal traits. The issues should always be observed (and never hearsay). This helps keep the discussion constructive rather than feeling like personal criticism.
- When addressing the concern, be clear and direct while also showing understanding. Explain the impact of the issue on the team, the business, or their own growth, and provide concrete examples to keep the feedback grounded. Encourage an open dialogue by asking for their perspective; sometimes, there’s more to the situation than meets the eye. This approach makes it a two-way conversation rather than just a one-sided critique.
- Finally, shift the focus toward solutions and support. Work together to create an action plan, whether it’s additional training, clearer expectations, or regular check-ins. Reinforce your confidence in their ability to improve and express your willingness to help. When employees feel supported rather than judged, they’re more likely to engage positively with the feedback and take meaningful steps forward.
- Offer your employee a support person if the situation requires it, and allow them time to process the conversation; most people will be protective of themselves when difficult conversations are taking place, so keep that in mind and consider a follow-up meeting to discuss outcomes.
- Finally, don’t forget your human as well; difficult conversations can be tough on both parties, so be kind, be prepared (with bullet point notes if it helps!) and ensure you make notes of the outcomes and agreed action plans to keep you and your employee on the same page (and email a copy to your employee so they are clear too).
Without Prejudice Convos in the Workplace
I regularly get asked by clients – “can we have a ‘Without Prejudice’ chat with our challenging employee?” When I ask if they know what ‘Without Prejudice’ actually means and what the proper use is? My clients often don’t know. Without Prejudice chats are a risky legal mechanism to use (but also valuable if done in the correct way).
Understanding Without Prejudice Conversations
A without prejudice conversation is a confidential discussion aimed at resolving workplace disputes without statements being used in future legal proceedings.
When to Have Without Prejudice Conversations
Without Prejudice conversations can be useful when an employer and employee want to explore solutions to a workplace issue without worrying that what they say could be used against them later. They’re great for discussing settlement agreements, resolving disputes, or negotiating an exit in a way that works for both sides. These conversations allow for open and honest discussions, often leading to quicker and less stressful resolutions.
When Not to Have Them
However, that being said, they shouldn’t be used in place of proper processes, like performance management or disciplinary meetings. If there’s no real dispute (e.g. a grievance) or if it feels like a way to pressure someone into an agreement, then it’s probably not the right approach. Issues like misconduct, bullying, or harassment should be managed through formal procedures to ensure fairness and legal compliance. Furthermore, a Without Prejudice discussion cannot be entered into without permission from both sides. An employer should only offer one if there is an actual dispute (e.g. a significant dispute or grievance raised); and ideally the employer would wait until the employee had asked for a without prejudice discussion.
Finding the Right Approach
It’s important to be clear on when these conversations are appropriate and to approach them fairly and respectfully. If in doubt, getting advice can help. When used correctly, Without Prejudice, discussions can be a great tool for resolving tricky workplace situations while keeping things professional and constructive, but they must be done properly – I have seen them go wrong.
Should AI be used to write legal letters to your staff?
While AI can be a useful tool for drafting general business communications, relying on it to write legal letters to employees can be risky. Legal matters require precision and are established on statute and legal precedent. AI-generated content may miss important legal nuances or fail to align with specific employment laws.
Employment disputes, disciplinary actions, or contract changes (amongst other documents) must be carefully worded to avoid misinterpretation, unintentional bias, or non-compliance with legal requirements. A poorly worded letter could leave a business vulnerable to legal challenges, grievances, or reputational damage.
Additionally, legal letters often require a human touch as they deal with sensitive situations that impact employees personally and professionally. AI is known to struggle in conveying the right tone, particularly in delicate matters such as redundancies, dismissals, or performance concerns. Employees deserve clear, fair, and empathetic communication, which AI alone cannot always provide. Instead of relying on AI, businesses should use it as a drafting aid while ensuring final letters are reviewed and refined by a practitioner with legal knowledge.
Get to know Jaime
Where did the name Marbles come from?
I had always thought there was a gap in the market for HR advice for small businesses. Whilst there are some good companies out there offering automated HR dashboards and apps, many businesses didn’t know how to use a policy or have a hard conversation or what to say in a disciplinary, or other offerings were just too pricey and I saw businesses “losing their marbles. I knew there was a place for me in this space.
What inspired you to start your business, and how has it evolved over time?
My inspiration came when my daughter was young. I wanted to try and be with her as much as possible (especially as my husband travelled a lot with the Air Force at the time). I wanted to be with her before school, after school, on sick days, and on holidays, I knew that owning my own consultancy would let me do that, as I could set my own rules, so I made it happen 😊 Over time, I have added a second brand (Jaime Rose – Employment Law Specialist) and shaped my offerings across both businesses. I started off as a basic HR practitioner but now a large amount of my work is focussed in the employment law space and specifically disciplinaries, investigations, conflict and grievances.
What advice would you give your younger self, starting out in her career?
Gosh, where would I start? I think the hardest thing for me professionally has been that I never knew I was neurodiverse (ADHD). I struggled in my 20s and 30s with burnout, illnesses, fatigue, anxiety and rejection sensitivity – and I had no idea as to why! This invisible disorder really impacted me professionally. It wasn’t until I was 44 that I got diagnosed and it made sense of my whole life and has helped me develop strategies to mitigate how I am impacted by ADHD. Having it doesn’t mean I’m not good at what I do (I AM!) – it just means I need to do thing differently to support my health. I prefer the Māori word for ADHD which is “aroreretini” which translates to “attention goes to many things” (whoever knows me, knows that’s true!). I would say to younger Jaime “Things are hard, they will be hard for sometime, but your brain is not broken, it’s just different, and there is a fabulous place for you in the future. You will find your place”.
What core values shape the way you work and how you run your business?
Empathy, Objectivity, Integrity, Communication – I am steadfast in these.
