ECC is here to help our members stay informed about regulatory and policy changes that could affect them, and to help improve the quality of ECE centre-based services. Meeting minimum employment standards is essential to delivering quality services. MBIE’s employment team has partnered with ECC to help us support ECE employers. They value associations like ours that help employers achieve their compliance goals. Here’s our spotlight on important information on employment standards some people might not know, and some upcoming changes to employment rules. MBIE’s Labour Inspectorate visited a small number of centres in Auckland in 2023. ECC member centres that participated were considered to have performed well. ECC members have access to a free employment helpline, delivered by Black Door Law. Current employment standards ● ● 90-day trials From 23 December 2023, 90-day trial periods became available for all employers. Previously, 90-day trial periods only applied to employers with fewer than 20 employees. Any employer can provide a new employee with an offer of employment which includes a trial period. A trial period must be agreed to by the employer and employee in writing, and in good faith, before the employee starts work, as part of an employment agreement. This extension of 90-day trials does not affect other aspects of employment relations, such as the requirement to act in good faith, or worker protections regarding pay, conditions, leave, and health and safety. An employee can’t be on a trial period if they’ve worked for that employer before. You can read more on the MBIE website https://www.employment.govt.nz/about/ news-and-updates/90-day-trial-periodsextended-to-include-all-employers/ And https://www.employment.govt. nz/starting-employment/trial-andprobationary-periods/trial-periods/ ECC Member Portal resources relating to employment agreements have been updated to include reference to 90-day trials. ● ● Rest and meal breaks Employees are entitled to paid rest and unpaid meal breaks that: ýý give them a reasonable chance during work periods to rest, refresh and take care of personal matters ýý are appropriate for the length of their working day with the employer. Employers must pay for minimum rest breaks but don’t have to pay for minimum meal breaks. Employees are entitled to set rest and meal breaks. Compensation for the employee will only be allowed instead of these breaks if an exemption applies and certain requirements are met. The minimum length of breaks required by law is 10 minutes for rest breaks and 30 minutes for meal breaks. Employers and employees should agree when the breaks are to be taken. If the employer and employee cannot agree on the timing of breaks, you can see MBIE’s suggested timing here: https://www. employment.govt.nz/hours-and-wages/ breaks/rest-and-meal-breaks/ Paid rest breaks must be paid at the same rate for which the employee would be paid to work. Employers and employees must have a reasonable opportunity to negotiate in good faith and reach agreement over the timing and length of breaks. You can see more information about rest and breaks, including exemptions and exceptions, here: https://www.employment. govt.nz/hours-and-wages/breaks/rest-andmeal-breaks/ ● ● Contractors vs Employees Employees and contractors have very different rights and responsibilities. Employees have all minimum employment rights under employment laws. You can see more details about the differences between the roles here: https://www.employment. govt.nz/starting-employment/who-isan-employee/difference-between-a-selfemployed-contractor-and-an-employee/ The courts have developed some legal tests to help you tell the difference between the roles: the Intention test; Control vs independence test; Integration test; and Fundamental/economic reality test. A sham contracting arrangement happens if an employer deliberately attempts to disguise an employment relationship as an independent contracting arrangement. The Employment Relations Authority will not support a sham contracting arrangement and the employer will still have to give the ‘employee’ their employment entitlements. The ‘employer’ may also receive penalties against them. You can read about the Employment Relations Authority’s processes for engaging in contractor vs employee disputes here: https://www.employment.govt.nz/resolvingproblems/escalation-unresolved-problems/ employment-relations-authority/ Upcoming Changes ● ● Minimum wage rates will increase from 1 April 2024 ýý Adult minimum wage will go up from $22.70 to $23.15 per hour. ýý Starting-out and training minimum wage will go up from $18.16 to $18.52 per hour. ýý All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child support. You can prepare for these changes by: ýý Advising your team ýý Checking your payroll systems and processes ýý Considering impacts on employee pay relativity ýý Updating your business budget ýý Ensuring you are aware of all minimum wage obligations In 2022, ECC’s analysis showed a large number of ECE employees (8.8%) would have been affected when the minimum wage increased. This reduced to 6% in 2023. See more information here: https://www. employment.govt.nz/about/news-andupdates/minimum-wage-is-increasing-on-1april-are-you-ready/ Certificated teachers are subject to the Ministry of Education’s “Step 1” minimum which increased on 1 November 2023 from $24.69 to $27.58 per hour. SPOTLIGHT ON ECE EMPLOYMENT STANDARDS AND UPCOMING CHANGES March 2024 { 18 }
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