Big shift for workplaces in 2018

Government policies will benefit workers but may make life tougher for employers nzherald.co.nz/business

There will be dramatic changes across the country’s workplaces in 2018, with employees set to get better pay and entitlements. Christie Hall and William Fussey of EY said in a joint article that employment-law amendments the Labour-led Government planned would create “fundamental changes”.

In particular, the rise of the minimum wage by 75c to $16.50 an hour from April 1 would be at the forefront of many employers’ minds, the authors said.

Also, the Labour Party had committed to implementing changes to the Equal Pay Act to give women in female-dominated industries better access to collective bargaining and court processes for settling claims.

Paid parental leave is also set to be extended from 18 to 22 weeks from July 1, while there are growing calls for employers to address pay equity and family benefits outside the legislative space.

“Employers . . . are increasingly under pressure to diversify their workforce, ensure their senior leadership roles attract sufficient female talent, and to publish information about their gender pay gap and diversity policies,” Hall and Fussey said.

The proposed changes come with the rise of the “gig economy” — characterised by short-term contracts and freelance work — easier global mobility and the increasing focus on a diverse and inclusive workforce.

Under Labour, contract workers, too, look set receive further statutory protections to bring them more in line with employees, while employees’ collective bargaining rights will also be strengthened.

The EY authors said Government plans to modify trial periods — adding a provision that bosses must provide reasons for dismissing new employees — could create complications: “Lawyers will be locked out of the dispute resolution process, compensation will be capped and referees’ decisions will not be open to appeal. If instituted, this will mark a fundamental change to the current system and additional complications to the employment dispute resolution regime.”

On their own, the proposed changes were “piecemeal” rather than representing a sea change.

However, “together they will create fundamental changes in the way we are responding to significant global trends in workplace management”.

Employment-law specialist Max Whitehead said there would be “dramatic changes to employment”, which, in the simplest terms, would be good for employees but not so for bosses.

“The changes will be particularly hard on small employers and are likely to force employers to find