The year is winding down; the summer break is fast approaching. It’s been a bit of a rough period for many in business, so in preparation for a smoother 2025, these last few weeks are the ideal time to check records, get your policies up-to-date, and ensure compliance with legal requirements.

It will be one less item on the to-do list, if you have the legal ‘people’ side of things in your business in order and ready for a productive and enjoyable start to the new year. We've pulled together a high-level recap of the things that happened and mattered from January, through to the publication of September's Employment Bytes. Following this, we've included key details from rulings and changes from the last couple of months.

Recap of Key Updates: January – September 2024

  • Minimum Wage Increase (1 April 2024): The adult minimum wage increased from $22.70 to $23.15 per hour, with proportional increases to the starting-out and training minimum wages.
  • Parental Leave Payments Adjustment (1 July 2024): Payments increased by 6%, reflecting rises in average weekly earnings. The minimum payment rate for self-employed parents rose from $227 to $231.50 gross per week.
  • Reinstatement of 90-Day Trial Periods (23 December 2023): Trial periods became accessible to all employers, highlighting the need for careful implementation to ensure legal compliance.
  • Uber Drivers’ Landmark Case (August 2024): The Court of Appeal ruled that four Uber drivers were employees, not contractors, potentially setting a precedent for other gig economy workers.
  • Holidays Act Reform Progress (June 2024): The government announced the release of a draft reform bill for targeted consultation, aimed at simplifying leave entitlements and compliance issues.
  • Enforcement of Employment Standards: Cases throughout the year underscored the importance of maintaining accurate wage and leave records, with significant penalties imposed for non-compliance.

Recent Developments

New Zealand is contemplating industrial manslaughter laws, following similar moves in Australia. It is sad to note that here in Aotearoa , the rate of workplace death is one of the worst in the developed world. There were 57 workplace fatalities in 2023 and three fatalities in the first 2 weeks of 2024.

The proposed Crimes (Corporate Homicide) Amendment Bill would hold organisations accountable for gross negligence leading to workplace fatalities. Penalties could include substantial fines and imprisonment for responsible individuals. A key goal for employers in 2025: prioritise robust health and safety measures to mitigate risk.

Immigration Updates

  • Immigration New Zealand (INZ) announced plans to replace the ANZSCO classification with the NOL, which may impact visa applications and skill level assessments.
  • As of 31 October 2024, migrants can no longer apply for a second Migrant Exploitation Protection Visa. Employers should ensure compliance with employment laws to avoid exploitation claims.
  • INZ updated allocation priorities for Accredited Employer Work Visas, focusing on Green List roles and applications lodged in the past 10 days, which aims to improve processing times for critical roles.

Employee Wins Case Over Non-Disclosure

A recent case highlighted the importance of clear recruitment processes. An employee dismissed for not disclosing criminal charges during recruitment successfully argued their dismissal was unjustified. The court noted the employer’s outdated application form did not explicitly require such disclosures, emphasising the need for clarity and regular review of recruitment policies.

Contractor or Employee? Proposed test

Further to the Uber case, and the discussion around contractor vs employees, the Government has proposed a new test. If all of the four criteria apply, then the person will be considered to be a contractor, and will not be able to challenge their employment status.

The four criteria are:

  1. A written agreement with the worker, specifying they are an independent contractor.
  2. The business does not restrict the worker from working for another business (including competitors).
  3. The business does not require the worker to be available to work on specific times of day or days, or for a minimum number of hours OR the worker can subcontract the work.
  4. The business does not terminate the contract if the worker does not accept an additional task or engagement.

Working arrangements that do not meet the exclusion criteria will continue to be assessed using the current full test in section 6 of the Employment Relations Act 2000. MBIE has a useful gateway test that businesses can use to check.

Health and Safety Consultants Held Liable

In a landmark case, a health and safety consultancy was fined nearly $100,000 after a worker suffered a traumatic brain injury. This decision underscored the accountability of external consultants for maintaining workplace safety standards, reminding businesses to ensure all parties involved in health and safety meet their obligations.

Prepare for 2025

As we approach the end of the year, here are some key areas to review:

  1. Are employee records, including wage and leave data, accurate and up-to-date?
  2. Have you reviewed and updated employment agreements to reflect current law?
  3. Are your recruitment-related questions and forms aligned with business requirements?
  4. Do your health and safety practices meet the highest standards, especially with potential industrial manslaughter laws on the horizon?
  5. For businesses employing migrant workers, are you compliant with the latest immigration requirements?

By addressing these areas now, you can enter 2025 confident and prepared for a successful year.

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Need advice or people-support? Our team are ready and available. Give us a call on +64 9 300 7224 or email hello@thepeopleplace.co.nz.