12 key developments to be across and keep an eye on
As we approach the end of the year, it’s essential for employers to stay ahead of the curve when it comes to changes in employment law and health and safety regulations.
2025 is bringing several key updates and proposals that will impact how businesses operate in Aotearoa. Whether it’s changes to wages, health and safety responsibilities, or emerging trends in employment classification, it’s critical to stay informed to ensure compliance and avoid potential risks.
Here’s a breakdown of the key changes and updates you should be aware of as we head into the new year.
Minimum Wage increase
Effective from 1 April 2025, the minimum wage will increase to $23.50 per hour, up from the current rate of $23.15. Employers will need to adjust their pay structures to ensure compliance with the new minimum wage, which could affect budgeting, wage structures, and employee negotiations. This increase is part of the Government’s ongoing effort to improve the standard of living for workers.
Changes to the Employment Relations Act
The proposed amendments to the Employment Relations Act 2000 could limit the ability of high earners (over $180,000) to file personal grievance claims for unjustified dismissal. These employees will need to negotiate terms within their employment agreements rather than seeking legal recourse through the Employment Relations Authority.
Health and safety accountability
A landmark case this year saw a CEO held accountable under the Health and Safety at Work Act for failing to ensure workplace safety. This decision reinforces the importance of employer responsibility, particularly for executives. It’s a reminder that health and safety obligations extend beyond frontline managers - CEOs and senior leadership teams must actively engage in and oversee workplace safety practices. This decision could set a precedent for future cases, and it highlights the need for employers to continually assess and address their safety practices at all levels of the organisation.
Employment status of "gig workers "and the proposed Gateway Test for contracting arrangements
A landmark Court of Appeal ruling found that four Uber drivers should be classified as employees rather than independent contractors. While the ruling is under appeal, this case sets a precedent for increasing scrutiny on gig economy workers and the broader implications for businesses with contracted workers Off the back of this case, the government has proposed a new gateway test to determine the employment status of workers in contracting arrangements. This change could impact businesses that rely on independent contractors, particularly in industries that have seen a rise in gig workers. This test will provide a clearer framework for determining whether a worker is an employee or a contractor, offering more certainty in the classification of workers
Charging employers as thieves
A new Bill was introduced in Parliament that could see employers charged under the Crimes Act 1961 for intentionally failing to pay employees money owed to them. Employers should be mindful of the legal consequences of not meeting their obligations to pay wages and other employee entitlements.
Pay transparency and equal pay
The Employer Remuneration Disclosure Amendment Bill is making its way through Parliament. If passed, this Bill will encourage pay transparency, supporting efforts to eliminate pay discrimination. Employers will need to ensure they can justify their pay practices and respond to questions about pay equity, particularly regarding gender-based disparities.
Strikes and partial lockouts
The Government is considering a new Bill that would allow employers to deduct wages proportionally during partial strikes. This change would give businesses more flexibility in responding to industrial action, particularly when only part of the workforce is involved in strike action. Employers should review their policies on strikes and industrial disputes to ensure they are aligned with these potential changes.
Good Faith requirements
In a memorable and highly publicised case (Wiles versus the University of Auckland Vice Chancellor) the Employment Court ruled that the University of Auckland breached its contractual obligations to act in good faith when it failed to address the harassment concerns of Associate Professor Siouxsie Wiles. The Court emphasised that employers must constructively engage with employees, prioritising their wellbeing and safety. This case underscores the need for employers to take proactive steps to mitigate risks and address safety concerns raised by employees, particularly when harassment is involved.
Holiday Act reforms
Despite previous government efforts to amend the Holidays Act 2003, the current government has decided to start fresh with proposed changes. These changes could have a significant impact on how holiday entitlements and pay are calculated. Employers will need to closely follow any developments and be ready to update their policies when the new rules are finalised.
Mutual Termination Agreements
A new Bill is proposing that mutual termination agreements between employers and employees can be reached without triggering a personal grievance. This could offer a smoother exit process for both parties and reduce the potential for legal disputes. If passed, this change will provide employers with an alternative to more contentious termination processes, helping to navigate employee departures more efficiently.
WorkSafe’s new obligations for the adventure sector
New regulations have broadened WorkSafe’s powers and imposed additional obligations on operators of adventure activities. These regulations require mandatory registration with WorkSafe and the engagement of technical advisors to ensure the safety of activities. Businesses in the adventure sector need to comply with these new safety standards to avoid potential penalties.
Personal Grievances Amendment Bill
And finally, a new Amendment Bill announced by Brooke van Velden will be introduced in 2025, aiming to reduce or prevent employees from claiming a reward in a personal grievance if they contributed to the situation. This could include anything from minor behaviour, such as lateness, to serious misconduct, such as violence. Employers should consider this proposed change when managing workplace behaviour and personal grievances, as it may impact how claims are handled in the future.
The coming year will bring several changes that may impact your workplace practices, particularly in the areas of employment law and health and safety. As these updates unfold, employers must be proactive in understanding and adapting to new regulations to avoid potential risks and ensure compliance.
Whether it’s adjusting to wage increases, reviewing your health and safety practices, or preparing for changes in employment classifications, staying informed and prepared will put you in the best position for success.
If you need assistance with understanding these changes or require guidance on implementing them in your workplace, get in touch with Yellow Consulting. We provide expert advice to help you navigate these challenges and ensure a smooth transition into 2024.
Disclaimer This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.
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