On 1 April 2021 the Adult Minimum Wage increased to $20.00 per hour, and the Starting Out Minimum Wage and Training Minimum Wage increased to $16.00 per hour (being 80% of adult rate).
It is recommend that employers regularly review their payroll systems and employment agreements to ensure that employees are not being paid below the minimum wage. It is also critical that employers monitor the hours their salaried employees are working to ensure that the Minimum Wage Act 1983 is not breached.
Last year the Government introduced the Holidays (Increasing Sick Leave) Amendment Bill to increase the minimum employee sick leave entitlement from 5 days per year to 10 days per year. The Bill proposes that:
The Bill is expected to pass in mid-2021 with any changes coming into force two months after Royal assent. We will continue to monitor the developments in this area and will provide further updates as needed. We encourage employers to subscribe to our Publications page.
The dedicated Holidays Act Review Taskforce which was established in May 2018 has now reported back to the Minister for Workplace Relations and Safety and provided numerous recommendations to the Government on how to simplify the Holidays Act 2003. The Government has accepted all of the Taskforce’s recommended changes, and it is expected that legislation will be introduced in early 2022.
Reform of the Holidays Act is expected to be helpful to both employees and employers to provide certainty and clarity around this area of law. We will continue to monitor the developments and will provide further updates as needed.
It has been announced that Matariki will be first celebrated as a public holiday on 24 June 2022. This will be New Zealand’s 12th public holiday. Legislation will be introduced later this year to amend the Holidays Act and add the additional public holiday.
We are employment law specialists and can provide comprehensive legal advice applicable to your particular circumstances.
If you would like advice on this topic or any other employment related issue please contact our Employment Team today on 03 548 8349.
Disclaimer: The information contained in this publication is of a general nature and is not intended as legal advice. It is important that you seek legal advice that is specific to your circumstances.