Changes to Employment Relations under a new Government
We are waiting in anticipation to Labour confirming what changes will occur within the first 100 days. At a minimum the following will occur in the very near future.
Minimum Wage / Living Wage
As announced late 24 October 2017, the minimum wage will increase to $16.50 per hour (from $15.75 an hour) from April 2017 with a rise to $20.00 per hour by 2021. Labour has promised that it will explore some relief for small businesses who may struggle with this increase.
Paid parental leave will increase to 26 weeks per year. This has limited effect on employers given that it is the Government paid subsidy that changes. Employees will still need to meet the thresholds in applying for parental leave.
A reform in relation to collective bargaining is to take place, with union protections and benefits increased.
A number of other changes Labour have alluded to being on the horizon for the next 12 months are detailed in our full article which you can download below for more information.
So, where to start?
We suggest that you identify all those employees who may be earning less than $16.50 an hour and start your financial forecasting with the increase of hourly rates. Need help with increase documentation then ring our Team.
We can also assist with drafting up a letter informing the employee of the hourly increase if that would help.
People Passion, in conjunction with our ER Consultant, Shelley Kopu, will be keeping a close eye on legislative development. Our aim is to ensure that you are prepared for change, before it happens, so make contact with us if you have any queries or concerns, 09 299 2525.
Shelley Kopu |People Guru