Shelley Eden, Partner at Shieff Angland, discusses recent and coming changes to the Employment Relations Act 2000 and the impact on the Aged Care industry. One feature which will impact facilities is that the number and duration of rest and meal breaks have now returned to being specified in the legislation, she writes. Shelley will present on the topic, Update on Health & Safety and Employment Issues in the Aged Care Sector and Retirement Villages, at the Aged Care and Elder Law Symposium on Wednesday, 13 March.
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Recent and upcoming changes to the Employment Relations Act 2000 affect all employers, but some impact particularly on the aged care sector.
The first applies when buying or selling a facility. Currently, employers of 19 or fewer employees enjoy an exemption from the requirements that certain categories of employees are entitled to transfer their employment to the purchaser on sale of the business. This relates primarily to cleaners and food caterers, but in aged care also to employees who provide orderly services or laundry services.
That protection will be removed as from 6 May, with the result that any sized purchaser of a facility may need to take on existing employees.
Another significant change from 6 May is that all employers of more than 19 employees will no longer be able to use trial provisions when taking on new staff. This is a noteworthy change requiring a fresh approach to hiring. With trial periods no longer available to larger employers, most will want to opt for a probationary period instead. This will require alterations to template employment agreements.
Another feature which will impact facilities is that the number and duration of rest and meal breaks have now returned to being specified in the legislation. An example is that an 8-hour work day must include two 10-minute rest breaks and one 30-minute meal break. A 4-hour work day must include one 10-minute rest break. This can have a particular impact in the caring business, given that it is a 24-hr, 7-day industry.
Some of the changes to unionised workplaces have been controversial. Union representatives can once again enter workplaces without consent, provided that the employees are covered under, or bargaining towards a collective agreement. They must still be respectful of normal operating hours and must follow health and safety and security procedures but, still, this is a change from the current position of permission being needed.
Also, there has been a reintroduction of the requirement that businesses must bargain for multi-employer collective agreements, if asked to join by a union. Further, come 6 May, the duty to conclude bargaining will be restored for single-employer collective bargaining.
More administratively challenging, as from 6 May the “30-day rule” will be restored, meaning that for the first 30 days of employment, new employees must be employed under terms consistent with the collective agreement. Also there will be requirements to provide specified information to new employees including information about unions.
Key takeaways
- All employers should review their employment agreements to ensure compliance with the changes, including the provisions as to rest and meal breaks, and the removal of trial provisions for larger employers.
- Employers with collective bargaining need to get ready to reinstate the 30-day rule as part of their administration of new employees, and to provide new employees with the required information.
Shelley Eden is a Partner of the firm, focusing on employment, trade practices and intellectual property. Shelley deals with all aspects of employment law and appears regularly at mediation and in the Employment Relations Authority, and has appeared in the Employment Court. She regularly presents to corporate clients as part of in-house training and development. Shelley works closely with our commercial team on statutory and regulatory compliance, competition and trade mark matters. A period out of legal practice included time in senior management, as well as lecturing in employment law and human resources management. She brings this experience to bear, providing clients with strategic, practical and timely advice. Shelley was admitted as a Barrister and Solicitor of the High Court of New Zealand in 1992. Contact Shelley at shelley.eden@shieffangland.co.nz or connect via LinkedIn
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