Changes to employment relations law
The Employment Relations Amendments Act 2018 has introduced a number of changes that aim to improve conditions in the workplace and offer more protections to employees.
Employers should familiarise themselves with these new employment relations laws, which come into effect from 6 May 2019. The Bill aims to restore a number of minimum standards and protections for employees, especially vulnerable employees, and strengthens the role of collective bargaining in the workplace. The major changes that have been passed include:
Trial periods: Businesses that are classified as small to medium-sized, with 19 or fewer employees, may enter into an agreed upon 90-day trial period with a new employee. Businesses with 20 or more employees may continue to use probationary periods to assess an employee’s skills, allowing a fair process for managing performance issues.
Breaks: To help employees work safely and productively, set rest and meal breaks must be provided based on the number of hours worked. If a time to take breaks cannot be agreed upon, the law will require breaks to be taken at prescribed times. Some limitations may apply for workers in specified essential services or national security services.
Reinstatement for unfairly dismissed employees: When requested by employees who have found themselves to be unfairly dismissed, reinstatement must be the first course of action considered by the Employment Relations Authority. In these circumstances, the Employment Relations Authority will assess whether reinstatement is a reasonable option for both parties.
Collective bargaining: Employers and unions will be subject to a duty of good faith to conclude collective bargaining unless there is a real case not to, based on reasonable grounds. This ensures that all parties involved genuinely attempt to reach an agreement.
Unions: Union delegates will be entitled to be paid by their employer for reasonable time spent undertaking union activities, such as representing employees in collective bargaining, during the employee’s normal hours of work. Employees will need to agree with their employer to do so or notify them in advance. An employer will be able to deny the request if it were to disrupt the business or the employee’s duties.
The changes in the Bill will be significant to all employers. Revision of employment agreements can help to ensure you are complying with all relevant amendments. Consult a legal advisor in cases where further assistance may be needed.