In recent times there have been a lot of questions for employers about what's on the horizon for employment law and not many answers. Helpfully, we now have some indication of what to expect for 2024 and beyond.
Last week, Brooke van Velden (Minister for Workplace Relations and Safety) gave a number of speeches setting out her reform agenda.
Since late 2023 as the new Government has settled in, we have seen fair pay legislation repealed and 90-day trial periods extended to include employers of all sizes. However, it seems the Minister has her sights set on some additional potential changes.
Other than the big ticket items already referred to, employment law developments have been light in recent times.
On 6 January 2024, the Worker Protection (Migrant and Other Employees) Act 2024 came into force. The new Act introduced a number of changes to assist with enforcement in relation to exploitation of migrant workers.
On 1 April 2024, the minimum wage will increase by 2% from $22.70 to $23.15.
We also have a number of bills which are working their way through the Parliamentary process. These include the Employment Relations (Restraint of Trade) Amendment Bill (seeking limitations on the use of restraints of trade) and the Employment Relations (Protection for KiwiSaver Members) Amendment Bill which would require employer contributions to be paid on top of remuneration and address discrimination of workers enrolled in KiwiSaver. Both of those bills are at the Select Committee stage.
In last week's speeches, the Minister confirmed that the Government is focused on a number of more material changes in this space but made clear that these are all at the policy stage.
Holidays Act
A key focus for the Government is to deliver improvements to the Holidays Act (which should be "workable" and a "material improvement on the status quo"). The Minister noted that the previous proposed changes were complex which resulted in delay from the policy stage to draft legislation. The Government plans to invite submissions on the policy issues under consideration from stakeholders in due course.
Health and safety laws
We can also expect some reform on health and safety laws although the specifics on this are light. The Minister questioned whether the almost 10-year-old Health and Safety at Work Act is fit for purpose given many businesses reported to her that they did not understand what their obligations actually are. Public consultation will be sought to determine how risk and costs should be allocated under the regime, what’s working and what should change going forward.
Independent contractor classification
The Government wants to ensure parties who agree to an independent contractor arrangement have certainty about the nature of that relationship. There is a suggestion that this might involve the removal of the right to challenge contractor status ie if you agree you're a contractor then that's what you are. Currently, individuals who have signed contractor agreements are able to challenge their status with the legal test being the "real nature of the relationship".
What the Government is suggesting would be a significant change in the New Zealand employment law landscape. With the Court of Appeal hearing an appeal on that very issue involving Uber drivers this week, this is certainly an area to watch.
Personal grievances
The Minister also referred to some proposed changes to the personal grievance regime including potentially:
-
introducing an income threshold above which a personal grievance could not be pursued; and
-
removing eligibility for remedies where the employee is found to be at fault.
In practice, the Employment Relations Act already provides for an employee's contribution to be assessed and remedies to be reduced accordingly where appropriate. While other jurisdictions such as Australia have adopted an income threshold approach, it is unclear whether that proposal would make any meaningful change in practice.
What was clear from the Minister's speech is that the proposals are all very much at policy stage and it looks like we won't be seeing any material changes in the short-term.
If you would like further information on any of the above employment law changes or would like to make a submission to Government on a particular matter, please get in touch with one of our experts below.