Minister of Labour Kate Wilkinson says the suggestion that every employee will be asked to provide a medical certificate whenever they are sick is ridiculous.

The Government is proposing to amend the current law so employers do not need to have proof when they suspect an employee of pulling a ‘sickie’.

"Employers aren’t going to waste their time and money asking every employee for a medical certificate when they take a day off sick. It’s simply ridiculous to believe that would be the case," says Ms Wilkinson.

"Ultimately, the employer must make arrangements to pay for the doctor’s visit. No one is going to go to those lengths for the sake of it.

"In reality employers will use this option to question those they suspect of routinely abusing the sick leave provision.

"This could be someone who calls in sick on the busy days or has a pattern of taking Mondays or Fridays off work.

"To argue that this would lead to increased healthcare costs or an overwhelming workload on doctors is laughable.

"Simple commonsense tells you it will be used sparingly and good workers aren’t going to see any difference to the current regime."

Posted by staff in News at 14:28

Employees will be able to exchange up to one week’s annual holidays for cash from next year, Minister of Labour Kate Wilkinson says.

The change is among a number of planned amendments to the Holidays Act 2003 announced today.

"Employees have been telling me they would like more choice," says Ms Wilkinson.

"They are keen to exchange some of their holidays for extra cash and I’m pleased to say they will be able to do so as of next year.

"Only employees can make this request and I know from the feedback I have received many will be shoulder-tapping their employers asking for the exchange as soon as they can."

Ms Wilkinson says employers won’t be able to pressure employees to exchange holidays for cash, though they can decline any request. The value of the cashed-up holidays will be the same as it would be if the employee took the holidays.

Other proposed changes to the Act include:

• For those whose hours of work and pay are irregular, their payment for sick leave, bereavement leave, public holidays and alternative holidays will be calculated by averaging gross earnings for the preceding 52 weeks or whatever lesser period the employee has been with that employer;

• Employers and employees will be able to agree to transfer the observance of public holidays to another (identified) working day;

• Employers will be able to ask for proof of sickness or injury within three consecutive days of an employee taking sick leave, but will have to cover the employee’s reasonable costs in obtaining proof; and

• The maximum penalties for non-compliance with the Holidays Act will double from $5,000 to $10,000 if the employer is an individual, and from $10,000 to $20,000 if the employer is a company or other body corporate.

There will be no change to holiday and leave entitlements.

Ms Wilkinson says the proposed changes will make the Act easier for businesses and employees to understand and apply.

"These changes are aimed at reducing direct costs and compliance costs so businesses can invest their time and money in growing their business and creating more jobs."

A Bill amending the Holidays Act 2003 is being drafted for introduction later this year and is aimed to be implemented in July 2011.

Media contact: Christian Bonnevie – 04 817 8266 or 021 243 8266

Questions and answers:

 How will I go about cashing up holidays?

You will have to ask your employer in writing and your employer will have to reply in writing. You and your employer may agree on a process in your employment agreement.

Will I have to give a reason for asking to cash up holidays?

No.

Will my employer have to give a reason for declining?

No.

How will I know whether an employer will allow me to cash up annual holidays?

Individual employers will be able to have a policy as to whether or not they allow holidays to be cashed up. It is their decision to approve or decline each request.

Will the employer’s cash up policy have to apply to everyone at the workplace?

No. Employers will be able to apply the policy to all or part of their workplace, to suit their business needs.

Will my employer be able to encourage or pressure me to cash up holidays?

No. It can only be done at your request.

What will happen if I and my employer dispute the value of cashed up holidays and/or the amount of holidays I have cashed up?

Labour Inspectors can determine this for you.

What happens if my employer pressures me to cash up annual holidays?

If the Employment Relations Authority or a Labour Inspector finds that this has happened, those holidays will be returned to your holiday balance and you won’t have to repay the holiday payment.

How much holidays will I be able to cash up?

You will be able to cash up a maximum of one week’s annual holidays each entitlement year. That may be for a full week at one time or you may wish to spread it out and make more than one request during an entitlement year.

Can the exchange be discussed in salary negotiations or as a condition of employment?

No.

When will my employer have to pay me the cashed up annual holidays?

As soon as practicable after your employer has agreed to your request. Typically this would be on your next payday, provided your employer grants the request in time for the next pay period.

How much will cashed up holidays be worth?

Cashed up holidays will have the same value as if you took the holiday – that is, the higher of your ordinary weekly pay at the time of payment for the cashed-up holidays or your average weekly earnings in the previous 12 months.

Will I be able to cash up annual holidays I became entitled to while on parental leave?

Yes. The value of the payment will depend on when your entitlement to annual holidays arose.

Are there any plans to change annual holiday and leave entitlements?

No.

How is the calculation of Relevant Daily Pay changing?

There will be no change for salaried employees and those on regular hours and pay. For employees whose pay and hours are irregular, the calculation will be based on an average of their gross earnings over 52 weeks or whatever lesser period of employment they have had with that employer.

Why is the change to Relevant Daily Pay required?

The current law is complicated and provides incentives to game the system. Businesses have struggled to correctly apply the law and this change will provide greater certainty and support productivity.

Who has ultimate say on when an alternative holiday can be taken?

If agreement can’t be reached, employers will be able to decide when it will be taken.

Will the observance of public holidays be able to be transferred?

Yes. Employers and employees will be able to agree to transfer the observance of public holidays to another (identified) working day. This change better reflects that New Zealand is a multi-cultural society and some employees may prefer to work a current public holiday in exchange for being granted a day off on a day that has special significance to their culture or religion that would otherwise be a normal working day.

Can employers now request proof of sickness or injury within three consecutive days of an employee taking sick leave?

Yes, if the employer suspects someone is pulling a ‘sickie’ they can ask for proof of illness or injury. The employer will have to cover the employee’s reasonable costs in obtaining this proof (pay doctor. Current law stipulates that employers must first have ‘reasonable grounds’ to question whether sick leave being taken isn’t genuine before asking for a medical certificate.

Why are penalties increasing for breaches of the Holidays Act?

The penalties will double from $5,000 to $10,000 if the employer is an individual and from $10,000 to $20,000 if the employer is a company or other body corporate. These penalties haven’t been amended for a number of years and the deterrent value of the average penalty handed down has been eroded. The increases underline the Government’s view that it is important employers meet their legal obligations.

Posted by staff in News at 11:22

The 90-day trial period is to be extended to enable all employers and new employees to have the chance to benefit from it, says Minister of Labour Kate Wilkinson.

The extension is among planned changes to the Employment Relations Act 2000 that Prime Minister John Key announced today in a speech to the National Party Conference.

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

"There are a lot of people looking for work and the changes announced today will help boost employer confidence and encourage them to take on more staff."

Ms Wilkinson says a Department of Labour evaluation of the trial period showed it had been beneficial for both employers and employees.

"The evaluation showed that 40 percent of employers who had hired someone on a trial period said it was unlikely they would have taken on new employees without it.

"Trial periods were introduced to encourage employers to take on new staff and I’m pleased to see this is occurring.

"It’s also great to see that by far the majority – at least 74 percent – of people employed on a trial period have maintained their employment. It’s clear this law is a win-win for employers and employees. Extending it will give all employers and potential employees the chance to benefit from it."

Further changes to the Employment Relations Act include:

• Promoting mediation by providing that the Employment Relations Authority gives priority to mediated cases;

• Developing a Code of Professional Conduct for employment representatives;

• Enabling Authority members to throw out frivolous or vexatious cases at an early stage;

• Allowing Authority members to award penalties against parties who fail to attend investigation meetings without good cause; and

• Modifying the test of justification in s103A of the Act.

Rules on union access to workplaces will also change so any access will require the consent of the employer – but consent may not be unreasonably withheld.

"The Government is committed to an employment relations system that helps employers and employees resolve disputes quickly and inexpensively," says Ms Wilkinson.

"While the current system generally works well, it can prove time-consuming and costly. The changes announced today will reduce costs by providing a more efficient system while maintaining fairness.

"The Act Party has taken a close interest in these changes and I want to thank them for their valuable input."

A Bill amending the Employment Relations Act 2000 is being drafted for introduction this year.

Media contact: Christian Bonnevie – 04 817 8266 or 021 243 8266

Note: Please find attached a backgrounder on the ER Act changes and the Department of Labour report: Trial Employment Periods: An Evaluation of the First Year of Operation. A copy can also be found at www.dol.govt.nz/publications/research/trial-periods/.

Questions and answers:

Why is the 90-Day trial being extended?

It has encouraged employers to take on new staff and helped those at the margins of the labour market, particularly young people, get jobs. The Government considers that all employers and jobseekers should have the chance to benefit from the positive outcomes the law has brought.

How successful has it been?

A Department of Labour evaluation of the first year of the 90-day trial period showed that out of 989 employers surveyed, 57 percent had hired staff since 1 March 2009. Of those, half had used a trial period when hiring at least one employee. 74 percent of employees employed on a trial period continued to be employed after the trial period ended. Of employers surveyed, 40 percent said it was unlikely they would have hired without the trial period.

Why not extend the trial period from a maximum of 90 days to six months or a year, as is the case overseas?

The Government is confident that 90 days has proved sufficient for employers to judge whether an employee is capable of or suited to a job. Internationally, developed countries have opted for longer trial periods but feedback we have received suggests most New Zealand employers can effectively evaluate an employee’s suitability within the first three months.

Why are some of the rules relating to personal grievances being changed?

There has been criticism that the current law is focussed too much on process and not enough on ensuring the right outcome. Decisions to dismiss are sometimes overturned because of what appear to be small defects in the employer’s process. Specifying minimum requirements for a fair and reasonable process - combined with the development of a Code of Employment Practice around discipline and dismissals - will create more certainty.

What is being done to address problems with ‘no win no fee’ and other advocates’ behaviour?

The Department of Labour will work with employment representatives to develop a code of professional conduct. This will help improve the professional standards of those engaged in grievance processes. The Employment Relations Authority will also be given greater discretion to dismiss frivolous cases.

Why will reinstatement no longer be the primary remedy in dismissal cases?

Parties in many dismissal cases no longer seek reinstatement. Often in such cases the employment relationship has deteriorated to such an extent it is no longer a practical option. This change recognises that reality.

Why is the role of Labour Inspectors being redefined?

Currently the work of Labour Inspectors is not defined in statute. The role of Labour Inspectors will be defined as being to investigate complaints and support businesses to achieve compliant practices and systems.

Why are Labour Inspectors’ powers being increased?

Inspectors will have a wider range of tools and will allow them to enter into agreements with employers. Improvement notices are similar to notices that inspectors can issue under the Health and Safety in Employment Act 1992. Enabling Labour Inspectors to seek penalty action for non-production of employment agreements reinforces the importance of written employment agreements in employment relationships.

Why are the rules relating to union access to workplaces being changed?

The Government considers that employers need to have control over who enters workplaces. This is for a number of reasons, including health and safety and the need to retain productivity. In practice, most union officials give advance notice of their intention to visit workplaces and visits take place with little or no disruption. However, employers want reassurance that they can decline or reschedule visits that may disrupt business activities. The law change gives that reassurance but does not permit a blank refusal of all requests – thus the interests of unions and employees continue to be protected.

What is behind the clarification of rules relating to employers communicating with employees during collective bargaining?

Many employers believe the law does not permit them to talk to their employees while collective bargaining is underway. They believe that if a settlement offer is made they cannot talk about it to their staff. Clarifying the law will ensure that employers (and employees) will know where they stand. Any communications will have to be consistent with the employer’s duty of good faith under the Act.

What happens next?

Legislation to enact the changes is being drafted and will be introduced into Parliament shortly.

Will I have a say?

The legislation will be referred to a select committee which will call for public submissions.

When are the changes likely to become law?

The Government has agreed to give the legislation priority. An enactment date will be announced as the Bill progresses through Parliament.

Posted by staff in News at 10:56

Today’s launch of the Business Leaders’ Health and Safety Forum marks a promising step forward in combating workplace deaths and injuries, says Minister of Labour Kate Wilkinson.

Prime Minister John Key launched the Forum in Auckland, where nearly 100 business leaders from across the economy and across the country gathered to sign up to the Forum’s goal of achieving zero harm workplaces.

"This calendar year alone, there have been 22 workplace fatalities notified to the Department of Labour – that’s 22 people who’ve not gone home to their families at the end of the work day and it is much too high a toll for New Zealand," Ms Wilkinson says.

"We suffer 6000 serious incidents each year, which hurt workers emotionally, financially and physically and cost the country billions of dollars in ACC payments and lost productivity.

"The success of the Forum – a coalition of business leaders and the heads of the Department of Labour and ACC – rests on the power of chief executives to achieve change in their workplaces.

"When they speak, their staff listen. When they make health and safety a business priority, change occurs, and that is good for this country.

"The recent review of the Workplace Health and Safety Strategy for New Zealand identified the need for greater leadership.

"I’m encouraged that so many business leaders have made a commitment to drive a strong health and safety culture through their workplaces. Their employees and their businesses will be better off for it."

Posted by staff in News at 10:25

A Nature Heritage Fund purchase of 378 hectares of dense lowland kahikatea forest and wetlands at the mouth of the Waiho River will eventually be added to Westland Tai Poutini National Park, Minister of Conservation Kate Wilkinson announced today.

The area purchased is situated 14 km from Franz Josef township on the West Coast and boasts some of New Zealand’s rarest flauna and fauna.

"This purchase secures a strategically located area that is surrounded by Westland Tai Poutini National Park," Ms Wilkinson says.

"It links two protected areas of Waikukupa Forest and South Okarito Forest to create a continuous protected coastal zone that is the centrepiece of one of New Zealand’s most iconic mountain to sea landscapes.

"There are also significant recreational opportunities with permanent and practical public access to Waiho Beach for walkers or mountain bikers. Hopefully it will encourage visitors to Franz Josef to stay longer in the area.

"The land will be managed by the Department of Conservation and eventually added to the National Park and the Te Wahipounamu World Heritage Area."

Dense kahikatea forest on river floodplain is very rare nationally with only an estimated 2% remaining. The coastal estuarine wetland vegetation is equally rare.

Birds such as kereru, kea, tui and bellbird migrate from the mountainous national park to the lowland forest near the coast for seasonal food availability. There are also places where whitebait breed and bittern, fernbird and spotless crake are found.

Posted by staff in News at 10:21