The new Order will take effect from 26 June 2014, and aims toensure workers have stable employment and employers face fair costs when itcomes to minimum wage payments.
How will this change affect employers and employees?
Most employers and employees will be unaffected by the new Order.It affects primarily minimum wage earners who are paid salaries.
If you pay your employees either by piecework, or by an hourly, daily or weeklyrate, then nothing will change for you.
If you have employees that you pay other than by the above rates,eg full-time employees on an annual salary, you need to ensure that you arepaying them at least $1,140 per fortnight if they work 80 hours or less in thatfortnight.
If those employees work more than 80 hours in a fortnight, youneed to ensure that they have received total remuneration for that fortnight ofat least $1,140 plus the minimum hourly rate of $14.25 for each of those extrahours.
It is the responsibility of your employer to ensure that they are complyingwith the Minimum Wage Act.
If you are paid either by piecework, or by an hourly, daily or weeklyrate, then nothing will change for you.
If you are paid other than by any of the above rates, yourearnings will now be assessed over a fortnightly period for compliance with theMinimum Wage Act.
Your employer will need to ensure that you are paid at the rate ofat least $1,140 per fortnight if you work more than 80 hours in a fortnight,your employer will need to ensure that your total remuneration for thatfortnight is at least $1,140 plus the minimum hourly rate of $14.25 for each ofthose extra hours.
Please read the Minster of Labour’smedia release on the Beehive websitehttp://www.beehive.govt.nz/release/fortnightly-min....