Langley Twigg Law Hawke's Bay

Employers ought to be aware that some significant amendments have recently been made to our employment laws with the majority of those amendments to take effect from 1 April 2011. 

Employment Relations Act 2000 

The key amendments introduced by the Employment Relations Amendment Act 2010 are as follows:

1. The 90 day trial period (currently limited to employers with less than 20 employees) will be extended to all employers.  Where an employment agreement provides for a trial period, an employee will not be entitled to bring a personal grievance if he/she is dismissed during the stipulated period.
2. The powers for unions to access workplaces will be restricted.  Union officials will now need to obtain the consent of an employer before entering a workplace.  Such consent is not to be unreasonably withheld and will be deemed to have been granted if an employer fails to respond to such a request within two working days. 
3. The "justified dismissal" test will change from what a reasonable employer "would" do to what a reasonable employer "could" do.
4. Reinstatement will no longer be the primary remedy where an employee establishes a personal grievance.
5. From 1 July 2011, employers must keep on file a signed employment agreement for every employee.

Holidays Act 2003  

The key amendments introduced by the Holidays Amendment Act 2010 are as follows: 

1. Any employee will be able to request that up to one week of his/her annual leave is cashed up.  An employer may accept or decline such a request and need not give reasons for the decision.  
2. An employer and an employee may agree to transfer the observance of a public holiday to another working day.  
3. An employer will be entitled (without justification) to ask for a medical certificate even where an employee is absent from work for just one day provided that the employer meets the employee's reasonable costs in obtaining that proof. 
4. Employees will be entitled to be paid for public holidays, alternative holidays, sick leave or bereavement leave if any of them fall during a closedown period and if that day would otherwise have been a working day but for the closedown.

The penalties for non-compliance with the Employment Relations Act 2000 or the Holidays Act 2003 have increased to $20,000 for companies and $10,000 for individuals.

If you have any queries regarding the material contained in this article please contact Roy van Panhuys.