D Y H R B E R G D R A Y T O N E M P L O Y M E N T L A W New Zealand Veterinary Association COVID-19: Navigating Employment Law P r e s e n t e r Steph Dyhrberg Partner 1
– Good faith: the foundation of employment relationships – Making changes to hours, pay and terms – Restructuring and redundancy – Recruitment post COVID-19 New Zealand Veterinary Association - Navigating Employment Law 2
Employment law principles All employment laws are still in force Good faith: the foundation of all employment relationships Being upfront and honest with staff Maintaining regular communication is essential Staff, customer & supplier goodwill – your most valuable asset New Zealand Veterinary Association - Navigating Employment Law There has been some panicking and some employers have put employment law obligations to their staff to one side – understandable but incorrect Taking staff along with us in these challenging times requires their goodwill – treat them as well as you can People appreciate being kept in the loop and knowing you are genuinely trying to do your best for them as well as the business 3
Making changes to employment terms Everyone should have a written employment agreement All major changes to employment terms require consultation and agreement – in writing Variation to hours, shift patterns – check employment agreement – consult Reducing pay requires consent – even if you claimed the wage subsidy New Zealand Veterinary Association - Navigating Employment Law It has been a legal requirement to have written employment agreements – signed! – for 20 years A written agreement must reflect the actual terms – can’t wrote them down for the first time and change them from the reality Check employment agreements for any relevant clauses eg type of work, hours, work or shift patterns, on call allowances, changes permitted, notice periods etc Consult honestly – can’t be just a box ticking exercise The Govt wage subsidy scheme gave the misleading impression employers could reduce pay/hours without agreement: incorrect 4
Restructuring • Keep staff employed if possible – redundancies should be a last resort • Make a plan to fit expected business needs & budget • Consultation – Early and genuine – before any decision is made – Include any union with members in workplace – Provide information, basis for proposed change – Allow for feedback and make a reasoned decision New Zealand Veterinary Association - Navigating Employment Law If wage subsidy application before 27 March 2020, have to use best endeavours to keep staff on. If from 27 March onwards, have to keep employed no less than 12 weeks (from date of application) Redundancies should be a last resort – hefty impact on people’s lives, self-esteem, morale of all staff including those who stay Consultation is ‘if and as much as is practicable in the circumstances’ – in the current emergency, consultation may be swift and light but still should consult Consult as early as possible, try to win hearts and minds – while still a possibility of affecting the outcome Business case for change needs to be robust, honest and able to be supported by evidence Might be changes to way people work, different roles, merge roles – not just slashing numbers Don’t claim a financial basis you can’t sustain or are not prepared to substantiate – it may be overturned/held to be a sham Timeframes can be short but not eg notice on the day of redundancy 5
Redundancies Make logical, fair decisions Communicate sensitively Consider redeployment options Reasonable notice – contractual is the minimum Redundancy compensation – contractual if included; consider an affordable payment if not Provide support if possible New Zealand Veterinary Association - Navigating Employment Law Can’t select based on irrational, unreasonable or unfair basis eg just dislike someone, discrimination or a grudge Disclose selection criteria upfront Redundancy will hit people emotionally as well as financially – be kind If no written employment agreement, reasonable notice in the circumstances If no redundancy compensation stated in employment agreement, no statutory obligation to pay but consider paying something if you can, esp for long serving employees Support might be outplacement, counselling/EAP etc – if you can afford it. No legal obligation to provide but do what you can. 6
Recruitment Specific advertising for the skills you need Be prepared for lots of applications – shortlist carefully Zoom is not the same… Reference & qualification checking Using trial periods - properly New Zealand Veterinary Association - Navigating Employment Law Think carefully about what skills, experience and qualities you will need in future for your business needs Avoid discrimination on illegal grounds (Human Rights Act) Consider increasing diversity: it is good for business You will get lots of applications from people desperate for any job – even if not qualified: be prepared for thorough, professional screening The recruitment mistakes you make now will be the employment problems you live to regret eg poor performance. In my experience poor reference/qualification checking can be a factor in employee fraud Look for gaps in CV’s Always check references Meet in person if possible- remote meeting is just not as good Employers with fewer than 20 employees can use trial periods of a new employee (never worked for company before), trial period MUST be signed before ANY work time is served, notice given within the 90 days. Then will block personal grievance for unjustified dismissal. 7
P r e s e n t e r Steph Dyhrberg Partner Questions? 8
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