The Employment Relations Act 2000 (ERA) is currently under review to implement key changes for businesses. The Employment Relations (Pay Deductions for Partial Strikes) Amendment Bill was introduced on 9 December 2024 and is currently being reviewed by Parliament. Further amendment bills are planned for 2025, addressing the following proposals below.
There has been a long history of disputes over whether someone is an employee or a contractor. Traditionally, parties had to navigate the complex test under section 6 of the ERA. The introduction of a new gateway test aims to simplify this process by considering:
If the new test is not met, the existing test may still apply.
The proposed amendments aim to streamline the process for raising and resolving personal grievances. This includes clearer guidelines on the steps employees and employers should take to address issues, making the process less complex and more accessible for all parties involved.
There is a proposal to reduce remedies for employees whose behaviour amounts to serious misconduct, with up to a 100% reduction. This includes violent behaviour, bullying, harassment, theft, fraud, behaviour that endangers health and safety, and using illegal drugs at work. Currently, employees who commit serious misconduct can still raise a personal grievance claim and receive remedies for procedural breaches by the employer. This change would make it harder for employees to claim for procedural errors if they contributed to the grievance.
If the amendments pass, staff earning above a certain income (likely to be set at $180,000 per annum base salary) will not be able to raise a personal grievance claim for unjustified dismissal. The threshold would be adjusted for part-time workers. These employees would still retain rights to claim for discrimination, sexual or racial harassment, or duress.
A bill which seeks to clarify employer responses to partial strikes has already been introduced but is yet to pass into law. If passed, employers can deduct a proportionate amount of pay when employees engage in partial strikes, ensuring that the impact of such actions is managed fairly.
These changes will affect all businesses and staff in New Zealand, so it is crucial to stay updated and aware of your rights and obligations. For more information, please contact the experts at Queen City Law at property@qcl.co.nz.
Disclaimer: We have taken care to ensure that the information provided is accurate; however, it is intended for general guidance only and should not be relied upon in individual cases. Professional advice should always be sought before any decision or action is taken.