The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

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Ross Henderson
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Changes Aim to Improve Flexibility, Reduce Costs and Clarify Grievance Rules

Workplace Relations and Safety Minister Brooke van Velden says amendments to the Employment Relations Act will improve labour market flexibility and help businesses to grow, innovate and employ with confidence and certainty.

The Bill will also make changes to simplify the personal grievances process including two significant changes.

“The amendment to personal grievances will reduce rewards for bad behaviour and reduce costs for businesses in the process. Under current law, if a personal grievance is established the Employment Relations Authority or Employment Court may award remedies including reinstatement into a role, and compensation for hurt and humiliation. The changes make clear an employee whose behaviour amounts to serious misconduct will be ineligible for remedies.”

“This change will ensure that hardworking New Zealanders don’t see bad behaviour rewarded,” says Ms van Velden.

The Bill also introduces an income threshold of $180,000 above which a personal grievance for unjustified dismissal cannot be pursued.

Another change will cut compliance at the beginning of employment.

By removing the ‘30-day rule’ employers and employees will now be free to negotiate mutually beneficial terms and conditions from the start of employment.

If you require advice in any employment law or HR area, then contact Ross Henderson on 0272940301 or email ross@hrcontracting.co.nz.

Topics: compliance employees employers employment human resources New Zealand small business