Employment rights under Covid-19
During the pandemic the Citizens Advice Bureau has to remain closed, but we’re still here, ready to answer your questions on just about anything you need answers or assistance with. Or just even a chat to get something off your chest. Our working hours during lockdown are Monday to Friday, 10am-3pm. Ring us on 0800 367 222.
Alternatively, if you have internet access, have a look at our website www.cab.org.nz which is available 24/7. Try typing in your question. Our database is normally right up to the minute and it’s targeted to New Zealand and our current laws. The website also provides an easy way to email us and we’ll try and get right back to you.
It is probably not surprising that since the lockdown back in March, there has been a surge in employment related enquiries. Here are some examples and the advice we might provide.
■ I received a letter from my employer saying that I will get a pay cut because of Covid-19. What should I do?
Your employer is likely to be experiencing a decrease in revenue because of the economic effects of Covid-19, and applying a pay cut to their employees is one way to reduce the possibility of having to make staff redundant. Your employer should consider all of the options available to them, including the support available to businesses affected by Covid-19. An employer wanting to change an employee’s conditions of work — hourly rates — is not allowed to do so without your agreement. They must discuss in good faith the implications of Covid-19 on your working arrangements before requesting changes to your work conditions. They also cannot pay you less than the minimum wage, even if you agree to it.
■ My employer has lost business because of Covid-19 and just made me redundant effective immediately. Is that legal?
The effect of Covid-19 means some businesses are considering dramatic action so they can consider trading. Employers and employees must discuss in good faith the implications of Covid-19 on their working arrangements.
This means that before making employees redundant they must follow a fair process whenever they want to make an employee redundant. If an employer does make employees redundant they must give notice to the employee in writing with among other things, information about the notice period. Do study your Employment Agreement, ask for a copy if you cannot find it. It may specify the period of notice if a redundancy situation arises. Otherwise, reasonable notice must be given.
It would be expected that employers who are eligible should have applied and received the Covid-19 government wage subsidy ($585 for 12 weeks for workers employed for more than 20 hours per week, $350 for lesser hours). If an employer must make an employee redundant during the 12 weeks, they can use the subsidy to pay any notice period, but any balance remaining has to be repaid. If your employer has not followed a fair process and they haven’t applied for the wage subsidy ask them to reconsider. If this is not successful you may have cause for a personal grievance. If you are a member of a union you can speak to your union representative. If you are not a union member (or even if you are), you can get advice from the Ministry of Business, Innovation and Employment by calling their Workplace Contact Centre
(0800 20 90 20). Contact us at CAB as we have good resources to assist.
■ My employer received the Covid-19 wage subsidy and is paying me less than my normal pay, even though I work full time. Can they do that?
If your employer is receiving the Covid-19 wage subsidy then they must have experienced a decrease in revenue of at least 30 per cent for any month between January and June 2020 compared with the same month last year. They must do their best to pay you at least 80 per cent of your usual pay (this might mean topping up the wage subsidy). Depending on the economic conditions they may not be able to do this, in
which case they must pay you at least the wage subsidy amount. However this does not mean your employer is allowed to change any conditions in your employment agreement, such as your work hours or pay rate, without your agreement. Your employer must discuss the situation with you in good faith, and if you can come to an agreement about changes to your work, these need to be recorded in your employment agreement. Note that even if you agree to a lower pay rate your employer cannot pay you less than the minimum wage.
■ I was asked to go back to work at the office, but I want to continue working from home. What are my rights about this during Covid-19?
Under Covid-19 alert level 3, businesses are allowed to operate if they can meet the public health requirements, but people who can work from home should still do so, rather than go into the workplace. If your employer has made this request under alert level 3 or 4, have a talk with them in case they are not fully aware of what businesses can and can’t do during the different alert levels. If you are at higher risk of Covid-19 then it is even more important that you stay at home. If talking with your employer does not work, your options include contacting your union representative if you are a union member, calling Employment New Zealand for advice and reporting your employer’s behaviour as a breach of the Covid-19 rules.
‘ If your employer has not followed a fair process and they haven’t applied for the wage subsidy ask ’ them to reconsider.
■ For more information, contact us at the Citizens Advice Bureau, phone free on 0800 367 222 or email on napier@cab.org.nz. No appointment necessary. We are here to help and confidentiality is assured.