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Labor law is also referred to as Employment Law in New Zealand. There is a wide range of legislation and laws that relate to employment relationships in New Zealand. In defining their employment relationships, all employers must meet certain ‘minimum rights of employees’.
The Employment Relations Authority (ERA) regulates most disputes relating to employment law. In certain cases, or where the decision of the ERA is challenged, the Employment Court of New Zealand will consider whether a breach of Employment law has occurred.
Employers looking to do business in New Zealand must have a firm grasp of their responsibilities. It’s vital that employers comply with legislation around employment law, not only when forming employment relationships but also during the recruitment process.
There is no minimum notice period in New Zealand. Generally, between 2 and 4 weeks’ notice is interpreted as fair, with 2 weeks’ notice being standard practice across New Zealand.
Keep in mind that the notice period is usually the same for the employer and employee, unless stated otherwise in the employment agreement. Employers usually consider how long it might take to replace the employee when deciding on the length of the notice period.
If an employee fails to give the agreed amount of notice, the employer may deduct pay in lieu of notice from any amount already owed to the employee.
An employer can make an agreement with the employee to waive all or some of their notice period. Such a negotiation should be done in a fair and proper way. The agreement should be in writing and signed by both the employer and the employee.
Redundancy pay or redundancy compensation, as it is known in New Zealand, is not mandatory. Redundancy pay is a matter for negotiation and is therefore dependent on the terms of the employment agreement.
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The Employment Relations Act (2000) sets out the legal backdrop for all employment agreements in New Zealand. Other minimum standards of employment are set out in key legislation, including; The Holidays Act (2003), The WorkSafe New Zealand Act (2013), The Wages Protection Act (1983), and The Minimum Wage Act (1983).
The Employment Relations Authority is an independent body that helps resolve employment relationship problems in New Zealand.
The only requirement stipulated by law is that notice periods should be ‘fair and reasonable’ and given in writing. Immediate termination of an employment agreement without notice is permissible in situations of serious misconduct.
