Do you have a copy of your employment agreement? These are two very common questions we ask our clients at CAB when we get a query about employment issues.
If you are an employer you will be aware that New Zealand employment law requires all employees to have a written signed agreement and a copy of that signed agreement.
If you are an employee and can’t find your copy your employer can provide you with a copy. We do tell people that employers can be fined if they don’t get you to sign an agreement, but not to worry, the law provides basic terms and conditions which an employer cannot contract out of, such as paying the minimum wage, or annual leave provisions. And maybe you have an agreement that was not signed - that can still be held to be a valid agreement.
Redundancy is an issue that has had much airplay in the media in these uncertain times and we are getting enquiries from both employers and employees about this process. This is one reason why having your employment agreement to hand is important. In New Zealand there is no requirement for an employer to pay redundancy compensation. Many people are unaware of this.
Therefore if an employment agreement does not mention redundancy compensation, there is no requirement to pay this. If there is a clause in the agreement, it will probably also state the amount of the compensation.
However, redundancy is part of a restructuring process and employers must follow this process, even during this period of recovery from the Covid-19 pandemic. Employers and employees must discuss in “good faith” the implications of the pandemic on their working arrangements. Before making employees redundant they must still follow a fair process.
Employers and employees may be considering all sorts of changes that involve impacts on the continuity of employee’s work, such as changes to job descriptions, reducing hours of work or, finally where no alternative arrangements can be found, redundancy may be considered. These changes must be discussed in good faith, and use agreed consultation processes. We have had quite a few employers contacting us about the process they need to follow. Failure to follow this, is a breach of the employment contract.
Employers must write to an affected employee, which must include:
• the notice period (which should be the same as what it says in their employment agreement)
• the last day of employment
• whether there is compensation and how much.
In addition, employers should offer the redundant employee support; for example:
• counselling
• help with updating or developing their CV
• interview skills training
• other training that might improve the employee’s chances of getting a new job and career advice.
The words “good faith” and “fair” and “reasonable” are relevant to all normal employment obligations and as stated above, apply regardless of the Covid-19 pandemic effect.
We encourage our employer clients to follow the process as set out and seek legal help if they are uncertain. And we encourage our employee clients to seek help from any support networks they have. If they are on a collective agreement and a member of a trade union, that is the best place to start. Otherwise, we can assist people to take steps as to how to progress this.
Employment New Zealand, part of the Ministry of Business Innovation and Employment has a very good hotline, which we can call with clients on hand. This is available to the general public – T: 0800 20 90 20.
If people have to take a dispute further, there is free mediation available through Employment New Zealand for employers and employees. We all wish that issues are resolved by discussion but if this does not resolve the matter, the Employment Relations Authority is the next step for employment disputes.
We might not be in lock down now, but we are still being affected by the pandemic. We can do well to remember some of the attributes we as a society were asking of ourselves and others from that time as we move forward even in the employment relationship - Kia atawhai -
Be kind!
Lesley Bradley, manager of Citizens Advice Bureau, 510 Richmond Road, T: 09 376 0392; www.ponsonby@cab.org.nz
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