EMPLOYMENT RELATIONS AMENDMENT ACT COMES INTO FORCE IN MAY 2019 - ARE YOU READY?
Your workplace will change from 6 May 2019.
The Employment Relations Amendment Act is changing the way all businesses engage with the people they employ in a number of important areas. So, whether you’re an employee or an employer, these changes will impact you.
1. 90 day Trial Periods
Under the new Act there will be changes to 90 day trial periods. Most businesses have made use of the 90 day trial period provisions over the years to make sure employees are both capable and suitable for the job they have been hired for.
Post 6 May 2019 businesses employing 20 or more employees will no longer be able to use 90 day trial periods but can still use probationary periods (which must not be confused with trial periods as they are different things).
Businesses with fewer than 20 employees can still use a 90 day trial period for all new employees, but as with all trial periods they need to meet the legal requirements and be properly introduced. We are still seeing many employers getting this wrong with disastrous financial and reputational consequences.
2. Personal Grievances
Under the new Act, reinstatement will once again become the primary remedy for a personal grievance where an employee seeks that remedy.
Reinstatement means re-employing the employee in their previous position, or in a position no less advantageous to the employee.
The Employment Relations Authority may order reinstatement for an employee on top of any other remedies such as compensation, lost wages and legal fees.
3. Rest and Meal Breaks
Under the Act set rest and meal breaks are being reintroduced which will be very different from the flexibility of the current legislation. The number and timing of rest breaks will depend on the number of hours worked.
Example
An employee who works eight hours is entitled to:
(a) Two 10 minute rest breaks; and
(b) One 30 minute meal break.
Under the Act an Employer and Employee can agree on the timing of the breaks to be taken. Failing agreement the Act provides set timings as follows:
(a) 2 – 4 hours 10 minute paid rest break
(b) 4 – 6 hours 10 minute paid rest break and 30 minute (unpaid) meal break
(c) 6 – 8 hours Two 10 minute paid rest breaks and one 30 minute (unpaid)
meal break
4. Vulnerable Workers
Currently businesses with 20 or more employees are exempt from the requirement to transfer employees in vulnerable industries on their current terms and conditions of employment where their work is restructured. This usually occurs when a business is being bought and sold.
The category “vulnerable workers” covers cleaners, food caterers or those undertaking laundry services.
Under the new amendment Act any vulnerable worker will, post 6 May have the automatic right to transfer their employment to a new organisation on the same terms and conditions.
Consequences
All Employers need to carefully consider the amendments made by the Employment Relations Amendment Act to protect yourself and your business.
This means that you will need to:
1. Review your current employment agreements;
2. Review your policies and procedures; and
3. Amend your in-house practises as required.
The consequences of getting this wrong are serious with the Authority having the power to award penalties of up to $10,000 for individuals and up to $20,000 for Companies.
If you have any questions or uncertainties as to how this might impact you or your business then please contact the Employment team at Godfreys Law to organise a free 30 minute consultation.
Your Godfreys Employment Law Team
Brad McDonald, Partner
Andy Ogilvie, Associate
Kathryn Evans, Solicitor
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