Lisa Mackay - HRtoolkit

How valuable is your team?

Posted on 18 October 2016 - 12:06 pm by Lisa Mackay

Engaged employees drive competitive advantage. If 10 minutes of wasted-time a day equals over 40 hours a year, imagine how valuable a committed employee can be.

Many people gain such satisfaction from doing a great job, that they will think nothing of working an extra 30 minutes a day. That’s the equivalent of 120 extra hours a year, just because they are committed to the success of your business.

Having an effective performance management programme goes a long way to motivating staff to do their job well. It also creates an open forum for you to discuss potential problems with employees before they become issues large enough to cost you time and money to resolve.

One of your most important tasks as an employer is to evaluate, support, motivate and influence the performance of your team. Subscribe to our Performance Toolkit for all the legislation and advice you need to help your team work smarter.

An introduction to parental leave

Posted on 18 October 2016 - 12:15 pm by Lisa Mackay

At work we all rely on the skills and experience of our staff and colleagues, but outside of work we also have family responsibilities.

Our business and employment environments rely on the skills and experience of our team, but outside of work we also have family responsibilities. Whether we have our own children or not, we are all care-givers of future generations.

As employers, it’s important to formally accommodate a degree of harmony between people’s work and family life. The Parental Leave and Protection in Employment Act helps us do just that.

Notwithstanding the goodwill when someone is blessed with a child, and the recognition of the rights of employees to have time off for parental leave, there will always be the question of who pays and what is affordable.

The introduction of Government paid parental leave was a significant step to address the loss of income experienced when parental leave is taken from work. And Government paid parental leave is perhaps the best solution, because it recognises that although many businesses agree with the importance of paid parental leave, small businesses may not be able to directly bear the cost burden.

A brief summary of the main provisions of the Act:

A female employee who is having a baby
An employee whose spouse/partner is having a baby
An employee who is assuming the sole care of a child he/she intends to adopt.
A couple who are spouses/partners and are assuming the care of a child under 6 years they intend to jointly adopt. In this case the couple concerned can nominate which of them is primarily eligible for the parental leave.

Although the provisions under the Act appear complex and potentially confusing at first sight, they simply reflect the entitlement options for employees in a variety of circumstances. As an employer, you are only likely to be dealing with individual cases, so simply need to assess the request for parental leave and follow a clear process to meet your obligations.

To help you, we have written a quick guide to parental leave for the HRtoolkit library.

Grey advice on employment law

Posted on 3 November 2016 - 10:35 am by Lisa Mackay

Human resources is all about those grey areas; assessing risk and giving advice on navigating between the black and white of employment law. The test of reasonableness and the requirement to act in good faith are two key examples of how important it is to have expert advice.

CASE STUDY

You have engaged a new employee, the person has only been with your team for a couple of months but things aren’t looking good. Unfortunately the employment agreement wasn’t signed until after the employee started working with you, and you haven’t made time to give feedback on their performance.

The Employment Relations Act (black and white)

An employee cannot bring a personal grievance unless they can show an unjustifiable action by their employer, but this doesn’t define what an unjustifiable action could be.

Section 67A (C) states “the employee is not entitled to bring a personal grievance”
Section 67B (3) states “Neither this section, or a trial provision prevents an employee from bringing a personal grievance or legal proceedings on any of the grounds specified in Section 103 (1, B-G).
Section 103 (1B) states “…affected to the employees disadvantage by some unjustifiable action by the employer”

So what are the grey areas in this situation?

Even though the law is clear that an employee can’t raise a personal grievance, there is no mechanism to prevent this from happening.

The lack of feedback and performance management gives your employee very little time to rectify mistakes
Failure to sign an employment agreement prior to starting work means that there is a defence that the the trial period is not valid because the employee has been previously employed (even if only for one hour)

How do you minimise the risk?

Quite simply, with empathy and understanding. People raise personal grievances because they are hurt, angry or upset, not because they understand employment law.

Be clear before employment commences that the 90-day trial period will apply to their employment
Make sure all employment agreements are signed before anyone starts work
Talk to your team soon as concerns are raised about an employees performance – don’t put it off
If your employees level of performance doesn’t improve, make it very clear that you are considering trial period termination
Be sure that your trial period requires a shorter notice period than normal; more often than not you will pay-out your employee in lieu of notice
Call in an expert to assess risk and review your processes

Employment law can be complex, but don’t resort to expensive lawyers, at HRtoolkit you can download plain English documents covering every aspect of your employment relationships. Subscribe to our Employment Toolkit here.

Are your business goals top secret?

Posted on 8 November 2016 - 11:59 am by Lisa Mackay

As a business owner you will understand the importance of clear goals, but will have also learnt that you need the help of your team to be successful. Staff are an essential resource in helping you achieve business success and there are a few golden rules to ensuring they buy into them.

So, do you have your goals for next year clearly defined? Whatever your goals, from going global to spending more time with the people you care about, you need to know how to achieve them. This involves resource planning both internally and externally, and managing communications and processes to support your plan.

Plan the timing and process of communicating you goals

The timing of introducing your goal, and the process you use to communicate your goal are vital. Focus on the people working for your business and make sure you have the right people in place. Consider everyone who’s going to play a part in assisting you, if you have team leaders, get them involved in this process early, ask for constructive feedback and make adjustments to you plan if necessary. Ask your team leaders for clear responses on the following:

What is staff moral like?
Can you envisage any road-blocks to the plan?
What extra resourcing will we need?

Creatively communicate your goals

If you want your plans to capture the imagination and support of your team, you need to consider the delivery and the audience when announcing your goal. Think about the benefits, and don’t be afraid to discuss financials. Your team will want to know why the goal is important and how what they do makes a difference to the health of your business.

Understand WIIFM (what’s in it for me)

If you are asking your team to put extra effort into a project, they need to understand why they are doing it. Once your team takes ownership of your business goals, they will get real satisfaction from achieving effective solutions.

If your staff doesn’t have the same level of passion for a project, ask yourself:

Do they have a clear and simple understanding of what’s required of them to sustain the business?
What are they passionate about? Can you utilise your staff’s passions to support your goal?

You’ll be hearing from my lawyer

Posted on 28 November 2016 - 1:43 pm by Lisa Mackay

Earlier this month we wrote an article on Grey Advice, navigating the grey areas of Employment Law. Usually the Law is black and white, but the test of reasonableness and the requirement to act in good faith are two key examples of how important it is to have expert advice. Clear understanding is especially important when an unhappy employee threatens a personal grievance.

People raise personal grievances because they
are hurt, angry or upset, not because
they understand employment law.

Unfortunately some employees can be quick to threaten a personal grievance, and there are plenty of no-win-no-fee lawyers in New Zealand who make their money supporting these claims. The most important advice we can give you is not to panic, and not to ignore the claim.

So, what should you do if you are given a personal grievance letter?

Begin by assessing the case against you. If you have followed a clear and consistent employment and disciplinary process, there’s a good chance your employee will recognise this. However if you haven’t acted in good faith, it’s important to get expert advice on how to manage the risk associated with your choices.

If your ex-employee has a solid case and you are in the wrong, we advise that you open a ‘without prejudice’ discussion. You are going to have to pay a personal grievance, so we suggest that you minimise your legal bill.
If you have been fair, consistent, and have legally compliant tools in place, the claimant will have no grounds for a grievance. Write back to your ex-employee explaining why they don’t have a personal grievance claim. Often this will be the end of the matter.
Occasionally a claimant will raise some good points, but be pushing their luck. In this case you can either consider having that ‘without prejudice’ discussion, or decide to write back and refute the allegation.

The average cost to lose a personal grievance claim at the Employment Court is $35,000, so it’s important to be aware that it may be less expensive to pay-out an ex-employee than to defend a claim. You have the right to negotiate a full-and-final settlement agreement at any time, which means both parties waive their rights to take further legal action against the other.

Don’t be nervous about grievance issues; just be fair, consistent and ensure you have all the legally compliant tools in place.

Can an employee bully a company?

The duty to act in good-faith in the employment relationship works both ways. No one is entitled to act in an intimidating manner in the workplace, and the principals of trust and good-faith also apply to employees. If a member of your team is actively undermining the business, we suggest you have some straight talks about what is, and what is not acceptable behaviour. If an employee then cries ‘bully’, initiate an independent investigation. A formal investigation will keep your decisions fair and reasonable, and people will be more likely to leave on good terms, minimising the risk of expensive repercussions.

Should I represent myself at the Employment Court?

This is one of those tricky situations where we don’t recommend doing it yourself. Give us a call on 0800 HRtoolkit (0800 47 86 65) and we will talk you through the most cost effective ways to defend a personal grievance.

Learn more

Give us a call on on 0800 HRtoolkit (0800 47 86 65). We don’t charge for those quick questions, and often a few minutes with our experts is all you will need. Visit HRtookit.co.nz, our bills aren’t big but the cost of getting it wrong can be huge.

Five tips to reduce risk at your office Christmas party

Posted on 28 November 2016 - 2:35 pm by Lisa Mackay

With the festive season fast approaching, many companies already have their staff end-of-year function marked on calendars. The office Christmas party is a great opportunity for you and your staff to enjoy each other’s company. However, there’s also the potential for undesirable behaviour if you don’t manage the event effectively.

Having a clear understanding of your responsibilities as a business owner will help reduce risk, so here are a five quick tips.

Be safe
Ensure your staff have arranged safe transport home from the event. As a business owner, you have a ‘duty of care’ to all staff. This includes promoting responsible drinking and sober drivers.

Encourage staff to arrange to be picked up after the event
Provide the phone number of a taxi firm and encourage pre-booking at this busy time of year

Be clear about expected behaviours
All staff should be aware that during the Christmas party they are still representing the company and the companies brand.

Be inclusive
When you plan your Christmas party, take into account the different cultures, religions and orientations of your team. Given that Christmas is a christian tradition, be mindful that some members of your team may not wish to attend.

You may want to consider renaming the gathering an ‘end of year staff party’
Ensure you have a range of non-alcoholic beverages and consult staff on suitable food choices

Remember workers not based in the office, or out on maternity leave
Ensure that people who work away from the office are given an invitation, or given an alternative event at another time. If your invitation extends to the partners of your employees, please remember to avoid sexual orientation discrimination by extending the invitation to staff with same-sex partners.

Warn your team about the consequences of unauthorised absence from work the day after the party
Remember to state your intentions clearly – hangovers are not a legitimate reason for absence from work and could potentially result in disciplinary action.

One recent study highlighted that workers drink an average of 5.5 units of alcohol at their office Christmas party, with ‘morning after sickies’ costing the economy about 39 million worker-hours.
An easy solution to this problem is to plan your event for a Friday, or the day after the office closes down so employees can recover in their own time.

Finally, having planned and communicated well to staff, enjoy the party!

P.S. We advise to all treatment centres use hight quality SEO for rehabs, so more people in need could find the help very fast and easy.

Managing a Christmas closedown

Posted on 2 December 2016 - 9:26 am by Lisa Mackay

With the days getting longer and warmer, we are all beginning to focus on a long summer holiday relaxing at the beach. The Christmas period is usually a quiet time for business, and as an employer you may be considering a summer close-down.

So, what is a close-down?

A close-down is when an employer customarily closes their business for a period of time. This often occurs over the Christmas period, but for some industries it may be at the end of a season. A close-down can be across an entire workplace or only part of the business, but it’s important to understand you can only implement this type of closure once a year.

How does a close-down effect annual leave?

During a close-down, you can require all or some of your employees to take annual leave.
If you have a team member who has been employed for less than 12 months, they may not have accrued enough holiday pay. In this case, they should be paid 8% of their gross earnings less any leave already taken.
If you have an employee without enough annual leave owing, they would need to either take leave without pay or request annual leave in advance. Before paying annual leave in advance, check you have a clause in your employment contracts that money can be deducted from an employees final pay if the employee has not accrued enough leave before moving on. This clause is covered in the standard HRtoolkit employment agreements.
If a public holiday occurs during the close-down period, employees are entitled to paid public holidays, irrespective of how much annual leave they have (or have not) accrued.

How should I announce a close-down?

It’s important to consider what an annual close-down will mean for you, your business and your team. Company close-downs are legislated for in the Holidays Act 2010, and although you can legally give your employees as little as 14 days notice, it’s best to let them know well in advance. If you are considering implementing a regular close-down period, you may want to ensure you have it documented in your annual leave policy or code of conduct documentation.

It’s also a good idea to communicate with your team in writing, so there’s no confusion about when the close-down is occurring.

Learn more

Please don’t hesitate to give us a call on 0800 HRtoolkit (0800 47 86 65) if you have any questions about managing your annual close-down. We don’t charge for those quick questions, and often a few minutes with our experts is all you will need.

More detail about employment law changes

Posted on 7 December 2016 - 11:58 am by Lisa Mackay

We had a huge response to our recent email about key changes to employment law in New Zealand, with a number of requests for more information. With that in mind, we’ve written a more detailed review of the changes.

The Government has made key changes to employment Law in New Zealand and we have updated our entire Employment Toolkit to ensure you have legally compliant documents and templates covering all aspects of your employment relationship. You can download the new documents here.

The Employment Standards Legislation Bill introduces changes to zero-hour contracts and helps enforce minimum employment standards to help protect vulnerable workers. These include a new infringement notice regime, clearer record-keeping requirements and tougher sanctions for the most serious breaches.

These changes will help prevent unfair employment practices and strengthen minimum wage and holiday entitlements including:

When hiring, employers must guarantee to give employee’s agreed hours of work
Employers won’t be able to expect employee’s to be available to work with no guarantee of hours without paying reasonable compensation
Employers won’t be able to cancel a shift without giving employee’s reasonable notice or compensation, both of which must be set out in an employment agreement
Employers won’t be able to make unreasonable deductions from wages
Employers won’t be able to unreasonably restrict an employee’s secondary employment
Employers will be publicly named if the Employment Relations Authority or Employment Court finds they have breached minimum standards
Individuals can be banned as a manager if they commit serious or persistent breaches of employment standards
Directors, senior managers and legal advisors can also be held accountable for breaches of employment standards
Labour inspectors can now share information with other regulators such as Immigration NZ, IRD and the Companies Office
Labour inspectors can now request financial or bank records from employers

How much money will these changes cost me?

For most businesses there won’t be any increase in compliance costs with these changes in legislation, the focus is on businesses not currently meeting their obligations. These businesses need to become compliant or risk facing financial penalties.

For more information on compliance, give us a call on 0800 HRtoolkit (0800 47 86 65).We don’t charge for those quick questions, and often a few minutes with our experts is all you will need.

What are the penalties for breaches of the new legislation?

Businesses found guilty of moderate breaches will be fined $10,000 for an individual and $20,000 for a company

Businesses found guilty of serious breaches will be fined up to $50,000 for an individual and up to $100,000 for a company

What records will I need to keep?

An important section of the new legislation deals with clearer record keeping requirements for wages, time, holidays and leave. Employers now need to keep a record of the hours each of their employees work each day, and the pay they receive for those hours. Additional hours worked by employees on salaries doesn’t generally need to be recorded, but minimum employment entitlements still need to be met.

Learn more

For more information about these changes to employment Law, give us a call on 0800 HRtoolkit (0800 47 86 65). We don’t charge for those quick questions, and often a few minutes with our experts is all you will need.

Changes to the document library include:

You can download the new documents here, or chat with our experts on 0800 HRtoolkit (0800 47 86 65) during business hours.

Minimum wage increase

Posted on 15 February 2017 - 12:02 pm by Lisa Mackay

In January the Government announced that the minimum wage will increase by 50 cents to $15.75 from 1 April 2017. The minimum wage for starting-out and training minimum wage will increase from $12.20 to $12.60 per hour – remaining at 80 per cent of the adult minimum wage.

For more information, read the Minister’s announcement

Subscribe to our Employment Toolkit for all the documents, legislation and advice you need to effectively manage your team.

SmartStart – an online tool for parents

Posted on 15 February 2017 - 1:30 pm by Lisa Mackay

The Government has just launched SmartStart, an online tool for new and expectant parents with step-by-step information to help you and your baby get off to the best start. The website integrates information from a range of social development agencies so new parents can:

Register their baby
Get an IRD number for their child
Adjust their Ministry of Social Development benefits
Update their Working for Families documents

SmartStart also creates a personalised timeline and checklist of things to do, helps parents check that they’re not missing out on financial help and provides tips on keeping parents and baby healthy and safe, as well as contact details for organisations which can help.

If you or an employee is expecting a baby, suggest they check out SmartStart.

Subscribe to HRtoolkit for all the documents, legislation and advice you need to effectively manage your team.

Author Archives: Lisa Mackay

How valuable is your team?

An introduction to parental leave

Grey advice on employment law

Are your business goals top secret?

You’ll be hearing from my lawyer

People raise personal grievances because they
are hurt, angry or upset, not because
they understand employment law.

Five tips to reduce risk at your office Christmas party

Managing a Christmas closedown

More detail about employment law changes

Minimum wage increase

SmartStart – an online tool for parents

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