Dramatic employment changes for small business

Dramatic employment changes for small business.
25 January 2018

WORKPLACES are set to be dramatically impacted following Labour’s employment law announcement today.

Managing Director of workplace specialist firm, Employsure Jen Tweed says: “The changes announced are in line with expectations set during the campaign; but demonstrate some shifting of election policy. The proposed amendments are the first step in the Government’s fulfilment of its commitment to employment relations reform.”
90-day trial periods.

Controversially, the Government announced it has moved from its election run platform to end 90-day trial periods at the request of New Zealand First, over fears vulnerable workers were being exploited. Tweed contends that there has been no evidence to suggest this was the case: “We hear from SME and large business clients that the 90-day trial periods allow them to fill roles quicker and minimise the risk of unjustified dismissals as they assess cultural fit and if the employee has the right skills for their business growth.”
Further adding “many of Employsure’s small and medium business clients used the 90-day trial period routinely while focus is firmly on retaining staff hired under such a provision. How this revised position will interplay with the referee service for unjustified dismissal claims is still unfolding.”
Under the proposed amendment bill, 90-day trial periods for new workers will only be available to businesses with fewer than 20 employees: “It’s a win for small business” she said. “90-day trial periods allow small business employers to employ people without risk, because they don’t have the infrastructure to get into complex employment situations that could make them reluctant to take risks when employing new staff.”

Wages.

Government also announced new collective bargaining powers towards guaranteeing pay and conditions for employees, Tweed suggesting that “following from recent cases in this area, New Zealand’s employment framework is beginning to shift towards a system that that will limit an employer’s ability to set their wages. With Fair Pay Agreements still on the cards this remains an area to watch.”

Union Rights and Collective Bargaining.

While not entirely unexpected, the proposed amendments to collective bargaining, and union rights in the workplace signal a shift in the landscape for union involvement. “Balanced and constructive engagement between employers and unions can be positive for everyone” says Tweed. “Maintaining this balance is key, the Government should focus on ensuring that confidence does not lapse with the broader business community.”
The Bill is expected to have completed its first reading by 1 February but Tweed anticipates, “it will take many months to see how this all unfolds for New Zealand’s SME businesses and economy.”
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