The proposed employment law changes are one reason business confidence is low.
The question is whether that concern is justified. In our view, the changes under the Employment Relations Bill will have little practical impact. No question the changes will take us in the wrong direction, but they just roll back changes made by National in 2015. We all managed well enough then, and will do so again. Most changes won’t apply until 2019.
Trial Periods: These will be limited to businesses employing fewer than 20 employees. The change won’t happen until 2019 so, for now, trial periods may continue to be offered by all employers. Employers with more than 20 employees will still be able to use a probationary period. Terminating an employee on a probationary period is subject to the usual rules around dismissal, but when managed effectively, these assist employers successfully set expectations for new employees and address any performance issues by issuing warnings where necessary prior to dismissal.
Reinstatement: This will again become the primary remedy for personal grievances. This was the situation prior to 2011, but reinstatement was rarely ordered as there is no point if the relationship has been destroyed.
Meal and Rest Breaks: The Bill brings back the prescriptive approach that applied prior to 2015. It didn’t work then, and it won’t work now. Back then, unions recognised the prescriptive approach didn’t work and worked with employers to provide more practical arrangements.
Unions and Collective Bargaining: The Government wants to strengthen Union rights by restoring:
Fair Pay Agreements are something to be worried about. We will address these next month. While all this is going on, France is going the other way and introducing rights for bargaining at the enterprise level; and a fixed scale of payments for wrongful dismissal, something we’ve advocated for a long time.
Tony Teesdale, Managing Director, Teesdale Associates Limited
021 920 323 www.teesdaleassociates.com