Employment Law

Restructures and redundancy – getting it right

COVID-19 has placed unprecedented stress upon businesses and employers across New Zealand. While some are struggling to fill roles, others are discovering that they need to restructure to reduce costs, or operate more efficiently. Businesses are able to change their structuring as is commercially necessary. In doing so they need to ensure that their restructure …

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Fair Pay Agreements – An Update

The Fair Pay Agreements Bill (Bill) was introduced to Parliament on 29 March 2022. The Bill proposes a statutory framework for collective bargaining for Fair Pay Agreements (FPA) that would provide for a mandatory, sector-wide collective bargaining regime. FPAs would also supplement collective bargaining between unions and employees, as well as bargaining for individual terms …

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Supreme Court decision on commission payments and holiday pay

The recent Supreme Court decision in Tourism Holdings Ltd v A Labour Inspector of the Ministry of Business, Innovation and Employment [2021] NZSC 157 (“Tourism Holdings”) held that commissions can form part of an employee’s ordinary weekly pay for the purposes of calculating holiday pay if they are made substantively regularly and temporally regularly. Holidays …

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Holiday pay decision on discretionary incentive bonus schemes overturned

In a recent decision, the Court of Appeal confirmed that payments under discretionary incentive bonus schemes do not fall within the definition of gross earnings under the Holidays Act 2003 (“the Act”). Holidays Act 2003 When calculating payment for holidays under the Act, employers must take into account “gross earnings” as defined in section 14(a) …

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Vaccination mandate expanded to health and education sectors

The Government has announced a significant expansion of the mandatory employee Covid-19 vaccination requirement, saying that vaccination is “critical to preventing the spread of COVID-19”. Based on the announcement, by the beginning of 2022, many health sector workers, and most early childhood, primary, and secondary education sector workers, will be required to have received two …

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COVID-19 and minimum wage obligations – the latest from the Employment Court

Gate Gourmet New Zealand Ltd v Sandhu [2020] NZEmpC 237 deals with employment rights and obligations arising during the COVID-19 lockdown. The key issue was whether an Employer was obligated to pay employees the minimum wage if they were not working due to partial business closure, but were “ready, willing and able” to do so. …

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