Employment law changes come into effect

Businesses and employees will enjoy greater certainty and flexibility at work with changes to the Holidays and Employment Relations acts due to take effect tomorrow, says Minister of Labour Kate Wilkinson.

“The Government worked hard last year to produce a package of changes that will encourage employers to hire, reduce compliance costs and give employees greater choice with how they take their holidays,” Ms Wilkinson says.

Changes taking place tomorrow include:

• Extending the 90 day trial period to all employers;
• Giving employees the choice to cash in their fourth week of annual leave, on agreement with their employer;
• Allowing employees to negotiate the transfer of a public holiday to another day;
• Adjusting the Relevant Daily Pay equation with a new calculation known as Average Daily Pay; and
• Doubling the penalties for breaching the Holidays or Employment Relations acts.

“The Government is focused on growing a stronger economy and creating more jobs for New Zealand families,” says Ms Wilkinson.

“These changes will help boost employer confidence and encourage them to take on more staff.

“They will also bring greater flexibility into the workplace, allowing employees to make decisions on their holidays that suit their personal circumstances.

“These changes are pragmatic, practical and important for our economy.”