Introduction
In this issue, I’ll take a look at a trending topic: the use of AI in businesses and the need for an AI Policy. I talk about an upcoming change to the Employment Relations Act 2000, being the New Test for Contractors and I discuss the difficult topic of Restructuring and Redundancies during a recession. We end with a few quirky Christmas facts about me and a reminder to start your 2025 planning.
Whatever you’re doing this upcoming holiday season, I hope it offers a well deserved break, time with family & friends and a chance to reflect on the year that has been and what’s instore for 2025. Thanks as always for your support.
Jaime.
“May this Holiday Season sparkle and shine and may all your wishes and dreams come true. Merry Christmas“
AI Policies – does your business need one?
A significant number of businesses use AI technology either directly or indirectly these days. More businesses are actively encouraging their teams to use AI in their day-to-day activities, such as ChatGPT, Grammarly, Co-pilot, Gemini and many more. Therefore, a key question arises as to whether businesses need an AI policy in place to protect both the company and its employees?
If you had asked me earlier this year, I would have said there are many factors as to whether businesses should have AI policies. However, with the phenomenal rise of AI use in the past few months, I do believe that it’s critical for businesses to have an AI policy – and it’s now become essential for businesses of all sizes.
So, what do you need to include in an AI policy?
An AI policy should provide clear guidelines on how AI tools should be used, ensuring that they align with your business values and are applied ethically and responsibly. A policy needs to help protect your business from risks like data misuse, bias, or unintentional regulatory breaches, which can be costly to fix later.
An AI policy also builds trust by showing customers and employees that you’re committed to transparency and fairness. As AI becomes more integrated into our daily operations, a solid policy can set your business up for long-term success.
Here’s my top 5 topics to cover in your AI policy:
- Purpose: Define AI goals and applications in your business.
- Ethics: Ensure fairness, bias-free operations, and respect for privacy.
- Accountability: Assign roles for monitoring and compliance.
- Data Security: Safeguard data and comply with privacy laws.
- Transparency: Clearly communicate AI’s impact and decisions.
Having an AI policy can provide you with a level of assurance that everyone in the business is on the same page with usage.
New Test for Contractors. What does it mean for Businesses?
There are some upcoming changes to the Employment Relations Act 2000, which aims to provide businesses and contractors with greater clarity about worker status. One of the key additions is the introduction of a gateway test to determine if someone is a contractor or an employee; this will be based on four criteria. If these conditions are met, the individual is classified as a contractor; if not, the current case-by-case approach will apply.
For businesses, this means:
- Clearer criteria to define contractor relationships, reducing legal uncertainties.
- Reduced risk of costly and time-consuming disputes over employment status.
- Greater flexibility to use contractors in innovative business models while offering better terms confidently.
These changes are expected to benefit both businesses and contractors, fostering certainty, fairness, and competitiveness. You can read about the proposed changes here, and if passed, they will come into effect in 2025: https://www.beehive.govt.nz/release/increased-certainty-contractors-coming
Recession, Restructuring and Redundancies – What businesses need to know before embarking on restructuring and redundancies.
In a recession, restructuring or redundancies can be tough, but taking the right steps can help you manage the process fairly and reduce risks. Before commencing restructuring or redundancies, I always recommend starting with a review of your employment agreements and workplace policies, as they often outline your obligations, such as notice periods and redundancy entitlements. If any affected employees are union members, an employer needs to remember to consult with both them and their unions, ensuring everyone has a chance to provide input.
When proposing changes, you will need to provide a clear workplace change proposal that outlines what is changing, why the change is necessary, how it will be implemented, and the process for consulting and selecting employees. Be specific about which roles may be affected, whether any new roles will be created, and how selection criteria will be applied if needed. Always give employees a reasonable timeframe to review and provide feedback, and make sure their input is genuinely considered before finalising any decisions.
It’s also important to assess how changes may impact employees. If roles are being merged, disestablished, or significantly altered, check whether existing roles are the same, similar, or different compared to the proposed ones. This helps determine whether employees can be redeployed, retrained, or considered for redundancy. Remember, redeployment should be a priority—offering employees available roles that match their skills and experience before moving forward with redundancy.
When redundancies can’t be avoided, you need to ensure the process is fair, transparent, and compliant with your legal obligations. Consider alternatives like adjusting hours, job-sharing, or creating temporary solutions to keep employees on board if possible. Keep the lines of communication open by regularly updating employees, holding meetings to discuss changes, and providing support for those affected.
By planning carefully, consulting thoroughly, and communicating openly, you can navigate restructuring during challenging times while maintaining trust and minimising disruption for your team and your business.
2025 Planning
The year ahead will no doubt bring its share of challenges and opportunities, making it more important than ever to have a clear and proactive HR strategy. From managing restructures and navigating compliance changes to fostering a strong, resilient workforce, the right plan can help you tackle uncertainties with confidence. Whether you’re facing potential restructuring, looking to retain top talent, or ensuring your policies align with evolving regulations, thoughtful HR planning is the key to staying ahead.
My advice is not to wait for challenges to catch you off guard — take charge now to future-proof your business and book some time with me in the new year. Together, we can set your intentions for the new year and I can support you to navigate the complexities, minimise risks, and create a strategy for your 2025 goals.
I’m looking forward to working with many of you to prepare for the year ahead. Reach out today to set some time for 2025.
Christmas insights from Jaime:
Do you have any Christmas traditions from your childhood which are now a part of your family’s Christmas traditions?
We never had traditions as Christmas was always a challenging time for my single mum, but she always made Christmas special by putting a pillow case at the end of my bed, so I woke up to Santa presents. I am still big on magic for my daughter with Elves and Santa – even though she is 12! She makes out she believes, but I think she’s just playing me for all that it’s worth!
What’s a Christmas bucket list travel destination for you?
New York, without a doubt!
If you were an Elf, what would your Elf name be?
Cheeky Little Chocolate Stealer!
What’s your perfect Christmas/Summer beverage?
Gin and Tonic 🙂 (but a gin or tonic with a bit of citrus/fruity zing!)
Finishing comments
As I wrap up another year, I want to wish you all a very Merry Christmas and a Happy New Year! Thank you for your support, trust and continued business — it’s been a pleasure working with you in 2024. 🎄✨
Marbles will be taking a well-earned break from Monday, 23rd December, and I will be back ready to tackle new challenges on Monday, 13th January. If you need anything before then, now’s the time to reach out. Otherwise, enjoy the holiday season, stay safe, and I’ll see you in the New Year! 🎉🎅
Jaime
