Under New Zealand employment law, employers and employees both have clearly defined workplace rights and responsibilities. Employers must treat employees fairly by paying them at least the minimum wage, providing safe work conditions and meeting all their other employment law obligations.
What is employment law in New Zealand?
Employment law in New Zealand is a complex body of law that governs the relationship between employers and employees. It covers a wide range of topics, including:
- Minimum employment standards, such as minimum wage, hours of work and leave entitlements
- Discrimination and harassment
- Health and safety
- Collective bargaining
- Ending employment.
Why is employment law important?
Employment law is important for a number of reasons. First, it protects the rights of employees. By setting minimum standards and prohibiting discrimination and harassment, employment law helps to ensure that all employees are kept safe while conducting their work and treated fairly by the people around them.
Second, employment law helps to promote a stable and productive workplace. When employers and employees know what their rights and obligations are, it is easier to resolve disputes and avoid conflict.
Finally, employment legislation helps to ensure that businesses compete on a level playing field. By requiring all businesses to comply with the same basic standards, employment law helps to prevent unfair competition from businesses that exploit their employees.
What are the different types of legislation?
The Employment Relations Act 2000
The Employment Relations Act 2000 (ERA) is the main piece of legislation governing employment relations in New Zealand. It sets out the minimum employment standards and the procedures for resolving employment disputes. It helps to ensure that all employment relationships are conducted in a fair and reasonable manner.
The ERA is based on several key principles, including:
Good faith: Employers and employees must act in good faith in all aspects of their employment relationship. This means being honest, transparent, and fair with each other.
Fair process: Employers must follow fair procedures when making decisions about their employees, such as when disciplining or dismissing an employee.
Mediation: Mediation is the preferred method for resolving employment disputes. Mediation is a voluntary process where a neutral third party helps the parties to reach an agreement.
The ERA covers a wide range of topics, including:
The duty of good faith: The ERA sets out the duty on both the employer and the employee to act in good faith in respect of their dealings with one another. They may not do anything that may (or is likely to) mislead or deceive the other and they should actively work to maintain a productive working relationship. The duty of good faith also sets out the employer’s obligation and the procedure to consult with employees in respect of potential adverse changes to their employment.
Discrimination and harassment: The ERA prohibits discrimination and harassment based on prohibited grounds, including race, sex, age, and disability.
Health and safety: The ERA requires employers to provide a safe and healthy workplace for their employees.
Collective bargaining: The ERA promotes collective bargaining between employers and unions who represent their members.
Individual employment agreements: The ERA sets out the form and content of the Individual Employment Agreement and relevant record keeping obligations of the employer relating to the agreement and other employee entitlements.
Ending employment: The ERA sets out the procedures that employers must follow when dismissing or terminating an employee.
Dispute resolution: The ERA establishes the Employment Relations Authority (the Authority) and the Employment Court, which are responsible for resolving employment disputes. It also provides a process for employees to raise personal grievances against their employers.
The ERA is a complex piece of legislation, but it is important for both employers and employees to have a basic understanding of its key provisions. Beyond the ERA, New Zealand has a long list of other important employment legislation.
Holidays Act 2003
The Holidays Act 2003 is legislation that sets out the minimum leave and public holiday entitlements for employees in New Zealand. It also covers how leave entitlements are calculated and paid.
The Holidays Act 2003:
Entitles all part-time and full-time employees to four weeks of paid annual leave and 12 public holidays per year.
Allows for casual employees to accrue annual holidays at a rate of 8% of their earnings.
Entitles employees to 10 days’ paid sick leave per year once they meet eligibility requirements (after 6 months). Sick leave can be used if the employee is sick or injured, or if a dependent or a spouse or partner is sick or injured.
Employees are entitled to a paid day off if the public holiday falls on an otherwise working day. The Holidays Act further sets out how employees are paid for working on a public holiday.
Entitles employees to 3 days’ bereavement leave for an immediate family member and 1 day for other bereavements.
Entitles employees who have worked for an employer for at least 6 months, to 10 days’ paid family violence leave per year.
The Holidays Act 2003 is an important law that helps to ensure that employees have a break from work and are paid for their time off.
Health and Safety at Work Act 2015
The Health and Safety at Work Act 2015 (HSWA) is the main piece of legislation governing health and safety in the workplace in New Zealand. It sets out the duties of employers, workers, and other persons in relation to health and safety, and provides a framework for managing and responding to health and safety risks.
The HSWA is based on the following key principles:
Primary duty of care: Employers have a primary duty of care to ensure the health and safety of their workers and other people in the workplace.
Participatory approach: Workers have the right to participate in health and safety decision-making at the workplace.
Prevention: The HSWA promotes the prevention of workplace accidents and illnesses, rather than simply responding to them after they occur.
Employers have numerous duties under the HSWA, including the duty to:
- Provide a safe and healthy workplace for their workers and other people in the workplace.
- Identify and manage health and safety risks.
- Provide information and training to workers on health and safety.
- Monitor and review health and safety performance.
Workers also have numerous duties under the HSWA, including the duty to:
- Take reasonable care to ensure their own health and safety and the health and safety of others at the workplace.
- Follow their employer’s lawful instructions and comply with any reasonable health and safety policy or procedure.
- Cooperate with their employer to comply with the HSWA.
The HSWA is enforced by WorkSafe New Zealand, which is a government agency responsible for promoting health and safety at work and enforcing applicable legislation.
Human Rights Act 1993
The Human Rights Act 1993 (HRA) is a law in New Zealand that protects people from discrimination based on race, sex, age, disability, religion, sexual orientation, and other prohibited grounds. The HRA also protects people from harassment and bullying.
The HRA is based on the principle that everyone has the right to be treated with dignity and respect, regardless of their personal characteristics. The HRA aims to create a society where everyone has equal opportunities to participate in all aspects of life.
The HRA applies to a wide range of situations, including employment, education, housing, and the provision of goods and services.
Here are some examples of discrimination that are prohibited by the HRA:
- An employer refusing to hire someone because of their race.
- A school expelling a student because of their disability.
- A landlord refusing to rent a property to someone because of their religion.
- A shop refusing to serve someone because of their sexual orientation.
Here are some examples of harassment that are prohibited by the HRA:
- Making unwanted sexual advances or comments.
- Expresses hostility against any other person on the ground of the colour, race, or ethnic or national origins of that person; and
- Displaying offensive or discriminatory material.
The HRA is part of a broader set of New Zealand legislation that reaches beyond the workplace and helps to create a more just and equitable society for everyone.
Wages Protection Act 1983
The Wages Protection Act 1983 (WPA) is a New Zealand law that sets out how wages must be paid and prevents unlawful deductions from wages. The WPA applies to all employers and employees in New Zealand, regardless of the industry or occupation.
Key provisions of the WPA
The WPA includes the following key provisions:
- Wages must be paid in money, not in kind.
- Wages must be paid in full and on time.
- Employers cannot make any deductions from wages without the employee’s consent, or unless the deduction is required by law.
- Employees have the right to recover unpaid wages from their employer.
Employment agreements
An employment agreement is a contract between an employer and an employee that sets out the terms and conditions of their employment. Employment agreements must be in writing and must be signed by both the employer and the employee.
Employment agreements can cover a wide range of topics, including:
- Job title and duties
- Wages and hours of work
- Leave entitlements
- Notice periods
- Dispute resolution
- Any other relevant terms and conditions of employment.
It is important for employers to have well-drafted employment agreements in place. This helps to ensure that the terms and conditions of employment are clear and that both the employer and the employee know what their rights and obligations are.
Employee rights
Employees in New Zealand have a variety of rights under employment law, including:
Minimum employment standards: All employees are entitled to minimum wages and hours of work, leave entitlements, and other minimum employment standards.
Protection from discrimination: Employees are protected from discrimination based on prohibited grounds, including race, sex, age, disability, and sexual orientation. This protection is provided for in the Human Rights Act 1993.
Health and safety rights: Employees have the right to a safe and healthy workplace. This right is protected by the Health and Safety at Work Act 2015.
Collective bargaining rights: Employees have the right to join a union and to bargain collectively for better wages and working conditions. This right is also protected by the ERA.
Personal grievance rights: Employees have the right to raise a personal grievance against their employer if they believe that their employer has breached their employment agreement or the ERA. Personal grievances are resolved by the Employment Relations Authority or the Employment Court.
In addition to these general rights, employees also have specific rights under various pieces of legislation, such as the Holidays Act 2003, the Parental Leave and Employment Protection Act 1987 and the Minimum Wage Act 1983.
Employee responsibilities
Employees in New Zealand have multiple obligations under employment law, including:
To perform their duties to a reasonable standard: Employees must perform their duties to a standard that is reasonable in the circumstances. This means meeting deadlines, completing tasks to a satisfactory standard and following their employer’s instructions.
To obey their employer’s lawful instructions: Employees must obey their employer’s lawful instructions. This includes instructions about how to perform their job duties, how to behave in the workplace, and what safety precautions to take.
To be honest and loyal to their employer: Employees must be honest and loyal to their employer. This means avoiding conflicts of interest, not disclosing confidential information, and not competing with their employer.
To take care of their employer’s property: Employees must take reasonable care of their employer’s property, including equipment, tools, and vehicles.
To comply with health and safety requirements: Employees must cooperate with their employer to comply with health and safety requirements at the workplace. This includes following safety procedures, using safety equipment, and reporting any hazards.
In addition to these general obligations, employees may also have specific obligations under their employment agreement or under other legislation. For example, employees who drive company vehicles may have obligations under the Land Transport Act 1998.
Here are some specific examples of how employees can fulfill their obligations:
An employee arrives on time for work and completes their assigned tasks to the best of their abilities.
An employee follows their manager’s instructions and complies with the company’s health and safety procedures.
An employee keeps their employer’s sensitive information confidential and avoids conflicts of interest.
An employee takes reasonable care of the company’s equipment and vehicles.
An employee reports any workplace hazards to their manager and cooperates with health and safety investigations.
Employer rights
According to New Zealand employment law, employers in New Zealand have a range of rights in the workplace. These include the right to:
Manage their business: Employers have the right to decide how their business is run, including the right to hire and fire employees, set wages and working conditions, and allocate resources.
Direct and control their employees: Employers have the right to direct and control their employees’ work, including the right to give instructions, assign tasks, and oversee performance.
Discipline their employees: Employers have the right to discipline their employees for misconduct.
Manage the performance of their employees: Employers have the right to manage an employee’s poor performance.
8End the employment relationship:* Employers have the right to end the employment relationship, subject to the terms of the employment agreement and the requirements of the ERA.
In addition to these general rights, employers also have specific rights under various pieces of legislation, such as the Health and Safety at Work Act 2015, and the Human Rights Act 1993.
However, these rights are not unlimited. Employers must exercise their rights in a way that is fair and reasonable, and they must comply with all applicable employment legislation and common law.
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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.