Page 52 - English-DBINZ brochure-2019

49 Doing business in New Zealand

DISCRIMINATION

The Employment Relations Act (together with the Human Rights Act 1993) prohibits discrimination
against employees on the grounds of sex, marital status, religious or ethical belief, colour, race, ethnic
or national origin, disability, age, political opinion, employment status, family status, sexual orientation,
being affected by domestic violence (from 1 April 2019), union membership status (from 11 June 2019)
and participation or involvement in the activities of a union. Employees who believe they have been
discriminated against may take a personal grievance to the Employment Relations Authority or make a
complaint to the Human Rights Commission.

REDUNDANCY
There is no statutory right to any redundancy payment under New Zealand law. Entitlement to any
redundancy payment depends on the relevant employment agreement. It is common to expressly
exclude any right to redundancy pay in employment agreements, although notice of termination
for redundancy must be given. In certain limited circumstances where a business has been sold or
transferred, the Employment Relations Authority can fix appropriate redundancy payments for the
employees affected.

TRANSFERS OF UNDERTAKINGS

There is limited protection in New Zealand for employees if all or part of the business they work for
is sold or transferred. Employees in several specified sectors, such as cleaners and caterers, have a
statutory right to transfer their employment on the same terms and conditions to the new owner of the
business (unless that owner does not have any employees or has 19 employees or less, in which case
exemptions may apply until 6 May 2019). Other employees have no such right to transfer, although their
employment agreement must contain a clause setting out what steps the employer will take to protect
the employees’ rights in such a situation.

WAGES
The current minimum wage for employees aged 16 years is NZ$17.70 an hour before tax. That equates to
NZ$141.60 for an 8-hour day, or NZ$708.00 for a 40-hour week. New Zealand’s Labour Government has
advised that the minimum wage will be increased to $20 by 2021.

A lower minimum wage can apply to employees starting out in work (aged 16-19), and those undergoing
formal training. The current “starting out” and “training” minimum wages are NZ$13.20 an hour before
tax. That equates to NZ$105.60 for an 8-hour day, and NZ$528.00 for a 40-hour week. Similar increases
to the “starting out” and “training” minimum wages can also be expected.
There is no statutory minimum wage for employees who are under 16 years old.
In most industries, employers pay wages and salaries at levels above the minimum wage level.

HOLIDAYS AND LEAVE
Under the Holidays Act 2003 all employees are entitled to a minimum of four weeks’ annual holidays
(after 12 months’ employment). There are also 11 statutory public holidays.
Employees are also entitled to at least five days’ paid sick leave per annum, and three days’ paid
bereavement leave on the death of close family members (both after 6 months’ employment).
Employees are entitled to accumulate sick leave up to a maximum of 20 days, although the parties can
extend this by agreement. From 1 April 2019, employees affected by domestic violence will also be
entitled to up to 10 days’ paid domestic violence leave per annum. There is currently a government-
appointed working party completing a full review of the Holidays Act.