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Payroll team update

JOB ADVERT + WAGES + ? = COST OF A NEW EMPLOYEE

A new employee costs more than just wages! The MBIE – Ministry of Business Innovation & Employment website has a great new tool to assist employers when they are thinking of hiring a new employee. Employing staff can be a big decision but it can also be the best move you ever make.

The EMPLOYEE COST CALCULATOR will give you the confidence to make that important next step, providing you with a ballpark figure of what hiring a new employee might cost based on industry averages.

It helps you tailor your calculations by industry and workplace, as ACC levies, training, overheads and other costs can vary widely. It also includes average salary rates by industry to get you started.

Check out the calculator at http://www.business.govt.nz/employeecostcalculator/

CHANGES TO EMPLOYEE'S TERMS AND CONDITIONS OF EMPLOYMENT

Can an employer change an employee's terms and conditions of employment?

Generally speaking, in order to make changes to an individual employment agreement, both parties to the agreement (the employee and the employer) need to consent to any such changes. Therefore, if an employer wishes to change an aspect of an employee's employment agreement, for example, their hours of work, they will need to get the employee's agreement to do this.

This does not limit the employer's right to manage the business as they best see fit. Therefore if the employer wished to change any part of the employee's employment agreement, they must have a genuine reason and they must follow a fair and reasonable process. The legislation does not specifically prescribe a process that must be followed, but it may include (but are not limited to) these types of things:

  • Having meetings with the employee. It also may be advisable to give the employee an opportunity to prepare for this meeting as well as have a support person present;
  • Giving the employee an opportunity to put their concerns/thoughts forward which the employer should take into consideration;
  • Providing the employee with reasonable notice/warning of when this change is going to take place.
If the employer implements changes without consultation without following a fair process or without genuine reasons to make a change, then this may be open to be challenged by the employee.

Reference: http://dol.govt.nz/workplace/knowledgebase/item/1283

EMPLOYER REMINDED NOT TO CONFUSE PART-TIME & CASUAL EMPLOYEES

The (MBIE) are reminding employers that part time employees who work regular rostered hours are entitled to pro-rated holidays and leave. Employers need to remember that it is only acceptable and lawful to add 8% of the employee's gross earnings as annual holiday pay to their regular pay for employees who are on a fixed term contract or who work irregularly or intermittently – for instance on-call workers.

Employees who have been working with the employer for six months or more even part-time and casual employees were also entitled to five days' sick leave, if they meet a certain criteria. Employers need to ensure they comply with employment standards as failure do so not only harms their staff but is ultimately a cost to their business.

For further details check out: http://employment.govt.nz/er/holidaysandleave/

Payroll team
Anne Bland Extn. 831
Carolyn Lawrence Extn. 837
Maree Craig Extn. 825



 

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