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Thriving, Not Just Surviving – The Living Wage

For supporters of the living wage, ‘earning a living’ should always mean earning enough to live comfortably. Are you new to the living wage? Find out how it is calculated, how it differs from the minimum wage, and the pros and cons of implementing the living wage in your business.   What is the living wage?  The living wage refers to a base level of pay that allows employees to afford housing, food, healthcare, and other necessities.   The goal is to increase the standard of living, while ensuring the minimum number of people fall beneath the poverty line.  The New Zealand living wage is based on local living costs and calculated by the New Zealand Family Centre Social Policy Unity, before being published by the Living Wage Movement.   From 1 September 2025, the Living Wage hourly rate will become $28.95, an increase of $1.15 on the 2024/2025 rate. What is the minimum wage?  The minimum wage is a base rate of pay before tax that all employers must pay employees. Like many other countries, the minimum wage in New Zealand is enforced by law. Paying an employee less than the minimum wage is illegal, even if you agree a reduced rate with your employee.   New Zealand was the first country in the world to establish a Minimum Wage Policy in 1894. Minimum wage laws have been modified ever since to promote equal pay and higher living standards for Kiwis.  How much is the New Zealand minimum wage?  There are three categories of New Zealand minimum wage:  Adult minimum wage: This applies to all employees who are over 16 and not categorised as trainees or starting-out.  Trainee minimum wage: This applies to employees aged 20 years or over whose employment agreement states they must complete at least 60 credits a year of an industry training program.   Starting-out minimum wage: This applies to 16-17-year-olds who have completed less than 6 months of continuous service with an employer. After 6 months they receive the adult minimum wage. This category also applies to 18-19-year-olds without 6 months of continuous service who have received social security benefits for 6 months or more. The Ministry of Workplace Safety and Relations announced minimum wage increases to $22.70 for adults and $16.18 for trainees and starting-out employees. These revised rates came into effect on 1st April, with over 225,000 Kiwis enjoying an increase in pay.  Key differences between the living wage and the minimum wage    The living wage should not be confused with the minimum wage, which is the lowest amount an employer can pay as mandated by law.   The key difference when the living wage is compared to the minimum wage is the calculation criteria. The New Zealand minimum wage is based on inflation rates and wider economic conditions. The living wage amount is based on more specific variables, such as the local cost of housing, food, and healthcare.  Although the New Zealand minimum wage is mandated by law, the living wage is optional for employers.   Employer considerations for the living wage  The living wage has long been a point of heated debate. Central to the movement is the belief that no one who works for a living should be poor. However, those who oppose the movement believe it places businesses under increased financial strain.  If you are contemplating implementing the living wage in your business, here are a few key challenges and benefits to take into consideration:  Challenges ❌ Benefits √ Reduced competitiveness: Companies that commit to increased overheads by paying more may struggle to be competitive. This is particularly likely if they are in a global market with rival businesses in low-wage countries. Reduced competitiveness: Companies that commit to increased overheads by paying more may struggle to be competitive. This is particularly likely if they are in a global market with rival businesses in low-wage countries Cost-push inflation: Many economists argue the living wage can lead to cost-push inflation. This is because increases in costs are likely to be passed on to consumers. Improved retention: There is a direct correlation between wage rates and employee retention. By paying your staff more, you can remove one of the most common motivations for seeking alternative employment opportunities. Reduced employment: Increases in labour costs may lead to fewer job opportunities company wide. It could even lead to the outsourcing of certain roles to reduce the wage bill. Reputational benefits: Customers are voting with their wallets when it comes to businesses involved in social and economic issues. Setting an ethical example is an effective way to enhance your reputation among a customer base Boosting the economy: By paying more, your company will help raise the public’s spending power. As more businesses opt-in to the movement, purchases of goods and services will increase, and the economy is likely to flourish.  Unsure about wages in your business?  Peninsula has worked with thousands of businesses across Australia and New Zealand, supporting them with employment relations and workplace health and safety. You can call our 24/7 Advice Line today on 0800 365 515 to get all your questions about wages answered. 

Blog

Two of the Most Common Personal Grievances Explained

A personal grievance is a procedure for an employee (or ex-employee) to challenge dismissal or treatment they consider to be unfair. A personal grievance is raised if the employee has made it reasonably clear in enough detail to their employer they have a complaint they want addressed. Two common types of complaints that can be raised by bringing a personal grievance are unjustified dismissal and unjustified disadvantage. According to the Employment Relations Authority Annual Report there has been a substantial increase in the number of personal grievances raised. Around a 20% increase in applications filed with the Authority in the last year (from 2024 – 2025) A 45% increase in applications filed with the Authority across a two year period (applications filed in 2023, vs applications filed in 2025) This increase in workplace disputes highlights how employees are more motivated to elevate their personal grievance matter if required. So business owners need accessible support from claims specialists more important than ever. Unjustified dismissal An employer should only dismiss an employee on reasonable grounds and after a fair process. An employee may be able to lodge a personal grievance claim if an employer does not do the following when terminating their employment: Act in good faith Acting in good faith means both the employer and employee should be honest, fair and transparent in their dealings with each other. They should listen to one another and respond appropriately in a timely manner. Have a good reason A good reason for dismissal must be genuine and reflect what a fair and reasonable employer could have done at the time of the dismissal in the circumstances. Examples of good reasons include serious or repeated misconduct. Follow a fair and reasonable process Procedural fairness is equally important – an employer should fully investigate any concerns and then raise them with the employee allowing a reasonable time to respond. The Employee must be given the opportunity to seek independent advice and have a representative or support person present if they prefer. The employer should carefully and genuinely consider the employee’s responses with an open mind and take into account any extenuating circumstances before making a decision. Make sure the outcome is not pre-determined You must be able to prove, as the result of a complete and fairly conducted investigation, that you were justified in believing the misconduct occurred and that termination is a fair and reasonable outcome in the circumstances. Try to avoid bending the process and facts to meet a certain outcome. Who is excluded from raising a personal grievance for unjustified dismissal? Dismissal during a Trial Period: If the employee has been given notice of dismissal during a trial period, a personal grievance may not be raised for unjustified dismissal unless the trial period is not valid. Dismissal of High-Income Earners - With effect from 21 February 2026, an employee earning $200,000 (or above) per annum would generally not be able to raise a personal grievance for unjustified dismissal. However, an employer and employee may agree in the employment agreement, that the employee is not excluded from raising a personal grievance for unjustified dismissal. Employees on existing employment agreements on 21 February 2026, who meet the remuneration threshold, will have up to 12-months to re-negotiate their agreements before the threshold for unjustified dismissal claims takes effect. Keep in mind, however, that both of the above categories of employees may still raise a personal grievance in respect of an unjustified disadvantage or discrimination. Unjustified disadvantage Employers must not do something that affects an employee’s employment in a way that disadvantages them or affects their ability to do their job. Examples of employees who have been ‘disadvantaged’ may include employees who have: been given a warning, suspended , or demoted, had hours of work or pay changed without consultation, been underpaid, been misled by their employer, not had the opportunity to respond to allegations against them, not had a safe workplace, or not been informed about proposals which may affect their employment. A personal grievance claiming unjustified disadvantage generally concerns something an employee is entitled to under their employment agreement. An employer needs to ensure the actions they took are reasonable and justifiable in the circumstances. BrightHR Software can help you keep track of your employees’ working hours, and corresponding pay and entitlement, by monitoring absences and shift schedules as employees clock in and out with Blip. Blip sends reminders to, and notifications from employees in respect of clocking on and off so you can track time and location. It also allows employees to log breaks. You can then generate a report that will show the number of shifts and hours worked, breaks and their duration and the total number of hours worked excluding those breaks to help with payments. How Peninsula can help you Peninsula may be able to assist you if you are currently subject to an unjustifiable dismissal, unjustified disadvantage or other type of personal grievance claim, and assist you in shoring up your business’ policies and processes to better protect your business and your people in the event of any future personal grievance claim. This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

Blog

When Can I Force an Employee to Take Annual Leave?

Large amounts of unused employee annual leave can be a huge financial strain for businesses. If an employee decides to resign, desiring to take annual leave as part of final payment, or they want to take their built-up leave all at once for an extended holiday, it has can potentially leave a business owner in a vulnerable financial position. Here we discuss if you can force an employee to take annual leave, and provide suggestions on how to handle this tricky situation. What is excessive annual leave? Every employee in New Zealand gets at least four weeks of paid annual leave each year, (except casual and some fixed term employees). Annual leave is intended to give staff a chance to rest and relax away from work. Although employees start accruing leave from their first day of work, the entitlement to take annual leave in NZ comes into effect after 12 months of employment, unless you wish to allow employees to take leave in advance. How to discuss forced annual leave As a business owner with multiple employees, it’s always best to reach out to your employee in the first instance. Making time for a good-natured chat about the leave entitlements could resolve the issue, as most issues can be solved with an amicable discussion. Genuinely having a desire to reach a mutual agreement together is the best way to approach the delicate subject of excessive amounts of annual leave. How do I direct an employee to take their annual leave? If after you have consulted with your employee and you just cannot agree on when the annual leave is to be taken, then you can direct the employee to take their leave. You must do this with 14 days’ notice to the employee to be legally compliant. You can also require employees to take annual leave if you regularly closedown for a particular period every year, such as over the Christmas and New Year break. Remember, you also need to give 14 days’ notice in this case as well. Directing an employee to use excessive annual leave A direction to take annual leave must be in a written form, such as an email or letter, providing the employee with 14 days’ notice. As a business owner, it’s important to handle excessive annual leave sooner rather than later, as this heavily built-up leave can be a financial liability. It can leave you short-staffed if employees decide to take their leave in a long chunk, or if they hand in their notice, (cashing out the annual leave). Next steps Encouraging your employees to take long weekends off, even short mini-breaks can help your business avoid a bottle-neck of future leave requests. This may reassure you as a business owner that financial liabilities are being reduced, and that productivity is maintained as employee mental health is boosted with well-deserved time off from work. Remember, talking to employees is the first step to finding a mutual agreement over any excessive unused annual leave entitlements. Tailored HR for you With years of experience in employment relations, Peninsula is committed to supporting New Zealand businesses. Our managed hr services are tailored for your industry, business, and staff needs. Chat with our team today to get all your tricky annual leave questions answered. This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

Blog

Thriving, Not Just Surviving – The Living Wage

For supporters of the living wage, ‘earning a living’ should always mean earning enough to live comfortably. Are you new to the living wage? Find out how it is calculated, how it differs from the minimum wage, and the pros and cons of implementing the living wage in your business.   What is the living wage?  The living wage refers to a base level of pay that allows employees to afford housing, food, healthcare, and other necessities.   The goal is to increase the standard of living, while ensuring the minimum number of people fall beneath the poverty line.  The New Zealand living wage is based on local living costs and calculated by the New Zealand Family Centre Social Policy Unity, before being published by the Living Wage Movement.   From 1 September 2025, the Living Wage hourly rate will become $28.95, an increase of $1.15 on the 2024/2025 rate. What is the minimum wage?  The minimum wage is a base rate of pay before tax that all employers must pay employees. Like many other countries, the minimum wage in New Zealand is enforced by law. Paying an employee less than the minimum wage is illegal, even if you agree a reduced rate with your employee.   New Zealand was the first country in the world to establish a Minimum Wage Policy in 1894. Minimum wage laws have been modified ever since to promote equal pay and higher living standards for Kiwis.  How much is the New Zealand minimum wage?  There are three categories of New Zealand minimum wage:  Adult minimum wage: This applies to all employees who are over 16 and not categorised as trainees or starting-out.  Trainee minimum wage: This applies to employees aged 20 years or over whose employment agreement states they must complete at least 60 credits a year of an industry training program.   Starting-out minimum wage: This applies to 16-17-year-olds who have completed less than 6 months of continuous service with an employer. After 6 months they receive the adult minimum wage. This category also applies to 18-19-year-olds without 6 months of continuous service who have received social security benefits for 6 months or more. The Ministry of Workplace Safety and Relations announced minimum wage increases to $22.70 for adults and $16.18 for trainees and starting-out employees. These revised rates came into effect on 1st April, with over 225,000 Kiwis enjoying an increase in pay.  Key differences between the living wage and the minimum wage    The living wage should not be confused with the minimum wage, which is the lowest amount an employer can pay as mandated by law.   The key difference when the living wage is compared to the minimum wage is the calculation criteria. The New Zealand minimum wage is based on inflation rates and wider economic conditions. The living wage amount is based on more specific variables, such as the local cost of housing, food, and healthcare.  Although the New Zealand minimum wage is mandated by law, the living wage is optional for employers.   Employer considerations for the living wage  The living wage has long been a point of heated debate. Central to the movement is the belief that no one who works for a living should be poor. However, those who oppose the movement believe it places businesses under increased financial strain.  If you are contemplating implementing the living wage in your business, here are a few key challenges and benefits to take into consideration:  Challenges ❌ Benefits √ Reduced competitiveness: Companies that commit to increased overheads by paying more may struggle to be competitive. This is particularly likely if they are in a global market with rival businesses in low-wage countries. Reduced competitiveness: Companies that commit to increased overheads by paying more may struggle to be competitive. This is particularly likely if they are in a global market with rival businesses in low-wage countries Cost-push inflation: Many economists argue the living wage can lead to cost-push inflation. This is because increases in costs are likely to be passed on to consumers. Improved retention: There is a direct correlation between wage rates and employee retention. By paying your staff more, you can remove one of the most common motivations for seeking alternative employment opportunities. Reduced employment: Increases in labour costs may lead to fewer job opportunities company wide. It could even lead to the outsourcing of certain roles to reduce the wage bill. Reputational benefits: Customers are voting with their wallets when it comes to businesses involved in social and economic issues. Setting an ethical example is an effective way to enhance your reputation among a customer base Boosting the economy: By paying more, your company will help raise the public’s spending power. As more businesses opt-in to the movement, purchases of goods and services will increase, and the economy is likely to flourish.  Unsure about wages in your business?  Peninsula has worked with thousands of businesses across Australia and New Zealand, supporting them with employment relations and workplace health and safety. You can call our 24/7 Advice Line today on 0800 365 515 to get all your questions about wages answered. 

Blog

Two of the Most Common Personal Grievances Explained

A personal grievance is a procedure for an employee (or ex-employee) to challenge dismissal or treatment they consider to be unfair. A personal grievance is raised if the employee has made it reasonably clear in enough detail to their employer they have a complaint they want addressed. Two common types of complaints that can be raised by bringing a personal grievance are unjustified dismissal and unjustified disadvantage. According to the Employment Relations Authority Annual Report there has been a substantial increase in the number of personal grievances raised. Around a 20% increase in applications filed with the Authority in the last year (from 2024 – 2025) A 45% increase in applications filed with the Authority across a two year period (applications filed in 2023, vs applications filed in 2025) This increase in workplace disputes highlights how employees are more motivated to elevate their personal grievance matter if required. So business owners need accessible support from claims specialists more important than ever. Unjustified dismissal An employer should only dismiss an employee on reasonable grounds and after a fair process. An employee may be able to lodge a personal grievance claim if an employer does not do the following when terminating their employment: Act in good faith Acting in good faith means both the employer and employee should be honest, fair and transparent in their dealings with each other. They should listen to one another and respond appropriately in a timely manner. Have a good reason A good reason for dismissal must be genuine and reflect what a fair and reasonable employer could have done at the time of the dismissal in the circumstances. Examples of good reasons include serious or repeated misconduct. Follow a fair and reasonable process Procedural fairness is equally important – an employer should fully investigate any concerns and then raise them with the employee allowing a reasonable time to respond. The Employee must be given the opportunity to seek independent advice and have a representative or support person present if they prefer. The employer should carefully and genuinely consider the employee’s responses with an open mind and take into account any extenuating circumstances before making a decision. Make sure the outcome is not pre-determined You must be able to prove, as the result of a complete and fairly conducted investigation, that you were justified in believing the misconduct occurred and that termination is a fair and reasonable outcome in the circumstances. Try to avoid bending the process and facts to meet a certain outcome. Who is excluded from raising a personal grievance for unjustified dismissal? Dismissal during a Trial Period: If the employee has been given notice of dismissal during a trial period, a personal grievance may not be raised for unjustified dismissal unless the trial period is not valid. Dismissal of High-Income Earners - With effect from 21 February 2026, an employee earning $200,000 (or above) per annum would generally not be able to raise a personal grievance for unjustified dismissal. However, an employer and employee may agree in the employment agreement, that the employee is not excluded from raising a personal grievance for unjustified dismissal. Employees on existing employment agreements on 21 February 2026, who meet the remuneration threshold, will have up to 12-months to re-negotiate their agreements before the threshold for unjustified dismissal claims takes effect. Keep in mind, however, that both of the above categories of employees may still raise a personal grievance in respect of an unjustified disadvantage or discrimination. Unjustified disadvantage Employers must not do something that affects an employee’s employment in a way that disadvantages them or affects their ability to do their job. Examples of employees who have been ‘disadvantaged’ may include employees who have: been given a warning, suspended , or demoted, had hours of work or pay changed without consultation, been underpaid, been misled by their employer, not had the opportunity to respond to allegations against them, not had a safe workplace, or not been informed about proposals which may affect their employment. A personal grievance claiming unjustified disadvantage generally concerns something an employee is entitled to under their employment agreement. An employer needs to ensure the actions they took are reasonable and justifiable in the circumstances. BrightHR Software can help you keep track of your employees’ working hours, and corresponding pay and entitlement, by monitoring absences and shift schedules as employees clock in and out with Blip. Blip sends reminders to, and notifications from employees in respect of clocking on and off so you can track time and location. It also allows employees to log breaks. You can then generate a report that will show the number of shifts and hours worked, breaks and their duration and the total number of hours worked excluding those breaks to help with payments. How Peninsula can help you Peninsula may be able to assist you if you are currently subject to an unjustifiable dismissal, unjustified disadvantage or other type of personal grievance claim, and assist you in shoring up your business’ policies and processes to better protect your business and your people in the event of any future personal grievance claim. This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

Blog

When Can I Force an Employee to Take Annual Leave?

Large amounts of unused employee annual leave can be a huge financial strain for businesses. If an employee decides to resign, desiring to take annual leave as part of final payment, or they want to take their built-up leave all at once for an extended holiday, it has can potentially leave a business owner in a vulnerable financial position. Here we discuss if you can force an employee to take annual leave, and provide suggestions on how to handle this tricky situation. What is excessive annual leave? Every employee in New Zealand gets at least four weeks of paid annual leave each year, (except casual and some fixed term employees). Annual leave is intended to give staff a chance to rest and relax away from work. Although employees start accruing leave from their first day of work, the entitlement to take annual leave in NZ comes into effect after 12 months of employment, unless you wish to allow employees to take leave in advance. How to discuss forced annual leave As a business owner with multiple employees, it’s always best to reach out to your employee in the first instance. Making time for a good-natured chat about the leave entitlements could resolve the issue, as most issues can be solved with an amicable discussion. Genuinely having a desire to reach a mutual agreement together is the best way to approach the delicate subject of excessive amounts of annual leave. How do I direct an employee to take their annual leave? If after you have consulted with your employee and you just cannot agree on when the annual leave is to be taken, then you can direct the employee to take their leave. You must do this with 14 days’ notice to the employee to be legally compliant. You can also require employees to take annual leave if you regularly closedown for a particular period every year, such as over the Christmas and New Year break. Remember, you also need to give 14 days’ notice in this case as well. Directing an employee to use excessive annual leave A direction to take annual leave must be in a written form, such as an email or letter, providing the employee with 14 days’ notice. As a business owner, it’s important to handle excessive annual leave sooner rather than later, as this heavily built-up leave can be a financial liability. It can leave you short-staffed if employees decide to take their leave in a long chunk, or if they hand in their notice, (cashing out the annual leave). Next steps Encouraging your employees to take long weekends off, even short mini-breaks can help your business avoid a bottle-neck of future leave requests. This may reassure you as a business owner that financial liabilities are being reduced, and that productivity is maintained as employee mental health is boosted with well-deserved time off from work. Remember, talking to employees is the first step to finding a mutual agreement over any excessive unused annual leave entitlements. Tailored HR for you With years of experience in employment relations, Peninsula is committed to supporting New Zealand businesses. Our managed hr services are tailored for your industry, business, and staff needs. Chat with our team today to get all your tricky annual leave questions answered. This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.