Articles

New From the Department of Labour

An Employment Relations and Health & Safety Resource

A productive workplace is one where people are safe, healthy, and treated fairly. Creating this sort of environment helps organisations recruit and retain skilled staff, minimise employment relationship problems, and avoid tragic and costly accidents.

The Big Six is a series of six brochures that provide checklists and tasks that draw attention to legal responsibilities and good employment practices. The brochures cover the key areas on which small and medium sized businesses commonly seek information. Links are provided to the Department of Labour’s online tools and to further information on: health and safety; hiring new employees; pay; holidays and leave; managing performance; and ending employment relationships.

The brochures also list other organisations that can help with starting and running a business.

To find out more about the Big Six, or to download it from the Department’s web-site click here

Cashflow - Improving Your Company's Cashflow

Why Is The Cash Flow So Bad? Shouldn’t The Bank Account Be In Credit? Why Are Clients Paying So Slowly?

When it comes to liquidity and debtor collections, there should be no change between buoyant times and recession, because the old maxim “a sale is not a sale until it is paid for” still very much applies. After more than thirty years in the business of assisting professionals and corporates to maximize their debtor collections, we strongly recommend that a disciplined professional approach does wonders for clients’ customer relations and the bank balance. The big advantages of effective credit control are reduced bad debts, greater profit and more reliable cashflow.

These are the questions that are asked so often, but the answers are quite simple and the results can make a radical improvement.

Q. Are you sending invoices too late?
A. Make sure they are received by 5th working day of the month.

Q. Are you billing monthly?
A. It is worth reviewing your terms of trade to enable you to send invoices weekly.

Q. Are your payment terms 20th of the following month?
A. Payment 7 days has obvious advantages such as improved cashflow.

Q. Are your payment terms printed on your invoices?
A. They should be printed on every invoice.

Q. Is the bank account printed on every invoice?
A. Clients are more likely to direct credit on time, rather than hold and send cheques late.

Q. Do you wait 3 months before contacting overdue clients?
A. Prevention is better than collection, so call early and avoid questions becoming disputes.

Q. Do you have a dedicated credit controller?
A. Regular follow up is essential – by a dedicated professional.

Managing Employment Relationships

Building constructive employment relationships makes good business sense: organisations with good employment relationships tend to be more successful.

When problems emerge, they are best resolved promptly by the parties themselves. Most employers and employees do a good job of preventing problems, or resolving them by dealing with each other honestly, openly and with mutual respect.

Sometimes employers and employees can feel intimidated when differences arise and may believe the cards are stacked against them. This can lead to actions that make it more difficult to resolve the problem effectively.

The Department of Labour has developed a series of resources designed to assist employers to manage employment relationships. The first, How to Hire, is designed to start the relationship off on a sound footing.

Another guide The Employers Guide to Employment Relationships continues where the How to Hire Guide finishes – by outlining the information and systems that should be established as the employment relationship begins. It then looks at good practice in dealing with the issues that most often lead to problems in the employment relationship.

The third resource is a Disciplinary Action Guide for Employers that aims to help employers, particularly small business owners, to understand the law relating to disciplinary action (including dismissals), redundancy and inability to work because of illness.

In employment relations, good process is essential in making good business decisions and reducing the risk of problems ending up in court, where you may incur costs for advisors, litigation and settlement: organisations with good employment relationships tend to be more successful.

For further information on these guides and others visit www.ers.dol.govt.nz/publications 

Redundancy - Getting It Right When Times Are Tight

The following information has been provided by the Department of Labour.  For further assistance, contact a member of the Department via their Website www.ers.dol.govt.nz

If you would like to provide support to employees whose roles have been made redundant, please see our Services tab for an overview of the Outplacement service we provide.

If you are facing the possibility of making staff redundant remember the “four R’s”

1. Reason: Redundancy is a situation where employment ends because the position filled by the employee is no longer required: It’s the position itself that is redundant and the decision to make a position redundant should have nothing to do with the particular employee who is filling that position. Be prepared to communicate why you are proposing a redundancy and be open to other commercially viable alternatives.

2. Refer: Refer to the employment agreement and any relevant organisational policies: All employment agreements must contain a clause outlining employer obligations in a restructuring situation. Click here for examples
Employees who do certain catering, cleaning, caretaking, laundry or orderly work have special rules that apply to them.

3. Respond: Give staff an opportunity to comment on the proposal and respond to their comments: It’s a good idea to meet with the staff, provide information about the proposed arrangement and give them an opportunity to comment on the proposal. Keeping staff informed and responding to their concerns and comments in a timely manner is key to getting the process right.

4. Resolve: Try to resolve disputes quickly and effectively: Sometimes you may need an independent third party to help resolve disputes arising from a restructuring situation. If you and your staff are unable to resolve matters, the Department of Labour provides free mediation services. Read more about mediation services

Resolving Workplace Problems

The best way to deal with a workplace problem is to prevent it from occurring. As an employer you should make sure you have the information and guidance you need, both when setting up an employment relationship and when problems arise afterwards. You should try in good faith to resolve any problems with your employees before seeking mediation assistance or going to the Employment Relations Authority. Even if you do have to pursue the problem further, discussing and clarifying it first will save time in those processes. The following steps are a guide to resolving a problem.

Be clear about the facts

Make sure that what you think has happened or is happening is not just based on an assumption you have made or a misunderstanding.

Talk to each other

Employers and employees should try to resolve the problem by discussing it with each other. Both parties are responsible for this. Union members can ask their union and employers can ask their employers' association to approach the other party for them.
If an employee believes they have a personal grievance they must raise it with their employer within 90 days of the action complained of, or the date they became aware of it, whichever is the later.

Clarify whether you do have a problem, and if so, what your problem is

Don't delay this step. Discuss your problem with family or friends or advisers to clarify what the problem actually is.
To find out more about problem solving and services available to resolve problems visit www.ers.dol.govt.nz/problem.

A Disciplinary Action Guide for Employers

If you are an employer it is important to understand the law relating to disciplining and dismissing staff. Good employment relations are vital for business success and for these relationships to be effective employers need to understand what they can do and how they should do it. To help get it right the Department of Labour has launched a Disciplinary Action Guide for Employers.  This guide aims to help employers, particularly small business owners, to understand the law relating to disciplinary action (including dismissals), redundancy and inability to work because of illness. Separate guidelines are available for employees. 

The first part of the guide explains the key principles that apply to all employment relationships. If you understand these principles and act in line with them , this will take you a long way towards ‘getting it right’ in practice - not just in relation to disciplinary action and dismissals, but in all aspects of your employment relationships.

The second part of the guide describes the key requirements of having a ‘good reason’  and following a ‘fair process’ before taking disciplinary action, or making a decision to dismiss an employee.

Lastly, the guide explains the key steps involved in the various types of disciplinary and termination processes that may arise.

For more information visit www.ers.dol.govt.nz.

90-Day Trial Period For New Employees - Things To Know

Following is an article produced by the Department of Labour. This information may be of interest and benefit to either of the following:

• Employers of fewer than 20 staff;
• Employees who accept, or are contemplating accepting, employment with an employer of fewer than 20 staff.

If you have questions arising from this article, please follow the link shown below, or phone The Employment Relations Info Line 0800 20 90 20.

When Did The Law Changes Come Into Effect?

From 1 March 2009, employers with fewer than 20 staff can hire new employees on a trial period of up to 90 days. During this period the new employee can’t pursue a personal grievance for unjustified dismissal.

Although this provision is flexible, keep in mind that basic employment rights remain unchanged. Standard protections regarding pay, conditions, leave, and health and safety remain in place throughout the trial period. Personal grievances may also be pursued if issues such as discrimination arise.

Since the law is new, it will present a bit of a learning curve for both employer and employee. To help you along the way, we’ve identified five key things you’ll need to take into account.

1. Find out if you are eligible to use the new law…

If your business employs fewer than 20 staff members then the new provisions apply. Keep in mind though a trial period can only apply if the new employee has not previously been employed by you. If the employee has either worked for you before or is currently on your staff then the new provision isn’t available. Nor does it apply if you employ 20 or more staff. In these circumstances, existing dismissal procedures will apply.

2. Inform your new employees that the trial period is voluntary and get agreement from them first…

Negotiating in good faith is important for both parties. The good faith provisions of the Employment Relations Act 2000 still apply to the negotiation of trial periods. You and your new employee must approach the trial period in a fair way and consider and respond to any issues raised by the new employee. Agreement must be mutual and voluntary.

3. Record the details of the trial period in a written employment agreement…

It’s essential to put your agreement in writing. If you don’t it won’t be valid and can’t be applied. First, determine the length of the trial period and the amount of notice you will give the employee if the trial is unsuccessful. The employment agreement needs to state that the employee will serve a defined trial period and that if he or she is dismissed during this period personal grievance or other legal proceedings cannot be taken. It’s also a good idea to record how you plan to give notice if the trial isn’t successful. Make sure you include the notice provisions for the trial in the employment agreement. The Department of Labour will be updating its web-based Employment Agreement Builder to include guidance on how to incorporate trial provisions in employment agreements.

4. Inform employees about the outcome of the trial…

Keep your staff informed. If the trial is unsuccessful, you will need to give notice within the trial period — even if the last day of work is after the trial period.

5. Use mediation if problems arise…

If an employment relationship problem arises during the trial period, the Department of Labour’s mediation service is there to help. The service is free and participation is voluntary.

For more information visit http://www.ers.govt.nz/relationships/trialperiod.html

Breaks and Infant Feeding

The Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 passed in September 2008. This Act outlines minimum entitlements for paid rest breaks and unpaid meal breaks and it also requires employers to provide appropriate facilities and breaks for employees who wish to breastfeed at work.

Rest and meal breaks for your employees:

Employers are now required to provide employees with paid rest breaks and unpaid meal breaks.  Employees will be entitled to:

• One paid 10-minute rest break if their work period is between two and four hours;
• One paid 10-minute rest break and one unpaid 30-minute meal break if their work period is between four and six hours;
• Two paid 10-minute rest breaks and one unpaid 30-minute meal break if their work period is between six and eight hours.

Where employees work for periods longer than eight hours, these provisions automatically reapply for each succeeding work period.

The timing of rest and meal breaks is flexible and can follow any arrangement agreed between you and employee. If you already provide rest and meal breaks that meet these new minimum requirements, its still a good idea to review your agreements to ensure they are consistent with the new law.

Click here for more information on rest and meal breaks.

Infant feeding in the workplace

Employers are now required to provide unpaid breaks (in addition to rest and meal breaks) and appropriate facilities for women who wish to breastfeed during a work period. This could involve making a private space available or providing access to a refrigerator. The length and frequency of breaks is a matter for negotiation between you and your employee.

Click here to read more about Infant feeding in the workplace.

What New Employees Want in a Job

Do you want to attract or retain good employees? For over a year we have been asking candidates what they want in their next job. We gave them over 30 criteria to score. Here are the Top Twelve things job applicants told us they are looking for.

1. Job security
2. Approachable management
3. More money
4. Pleasant work environment
5. Close to home
6. Opportunities for promotion
7. Training – on the job
8. Varied duties
9. Team based role
10. Regular performance reviews – lined to salary reviews
11. Flexible working hours
12. Parking provided
    

What Else are Employees Looking For?

Although not in the Top Twelve, following are other criteria that job applicants say matter to them:

• Sociable team
• Child friendly policies around working hours and school holidays
• Superannuation
• Paid or subsidised medical
• Location close to public transport
• Regular performance reviews
• Tertiary study or external study opportunities

New Minimum Wage Rates - 2010

New minimum wage rates will become effective as of 1 April 2010.

The adult minimum wage will be $12.75 an hour. That’s $102 for an eight-hour day, and $510 for a 40 hour -week. The new entrant’s minimum wage and the training minimum wage will be $10.20 an hour. That’s $81.60 for an eight-hour day, and $408 for a 40-hour week. 

Find out more about the Minimum Wage