Next target may be Holidays Act

Geoff Bevan.
Geoff Bevan.
The Holidays Act is likely to be next on Workplace Relations and Safety Minister Michael Woodhouse's agenda after steering the Employment Relations Amendment Bill into law this week.

Labour acting deputy leader Annette King warned yesterday the Government was already hinting at making changes to the Holidays Act, which ensured New Zealanders got a certain amount of annual leave.

''Calculating annual leave differently is likely to see workers losing even more of their holiday entitlements.''

Previous legislation allowed workers to cash up their fourth week of annual leave, putting pressure on them not to take it as time off, she said.

Gallaway Cook Allan senior employment specialist Geoff Bevan said it was well known in the business world the largely ''one size fits all'' approach taken in the Holidays Act caused businesses problems.

That was particularly the case when working hours were flexible and variable.

''I'd expect the Government to look closely at allowing more flexibility around calculations for public holiday and sick pay.

"The whole area of discretionary bonuses may also get some attention. This has been the cause of ongoing difficulties for a number of employers.''

The new employment laws were a measured but definite shift towards the right, he said.

They were intended to make compliance easier and more realistic for employers but also to shift the balance of power in difficult collective bargaining environments away from unions.

The changes around collective bargaining were moderate but they would have an impact on the claims unions made and settlements that were reached, Mr Bevan said.

Businesses would welcome a change that placed ''more sensible limits'' on what employers had to tell employees in potential dismissal situations, such as redundancy or serious misconduct.

Now, an employee facing redundancy could ask to see information about the performance of other employees in similar roles, then use the information to argue other employees should be laid off instead of them.

''This has not been popular, or workable, particularly for the small or medium-sized businesses.

"The law is now clearer. Employers are not required to give employees information which involves an `unwarranted' disclosure of another person's private information.''

The change might also offer more protection to people who made complaints about employees, Mr Bevan said.

Otago-Southland Employers Association chief executive John Scandrett said the new legislation ensured the law was more aligned with what was already common practice in many workplaces.

Rather than deny employees meal breaks, it ensured staff could take their meal and tea breaks whenever they agreed was the best and safest time.

The new law extended the right to request flexible working hours to all workers from day one, not just to caregivers who had been employed for six months, he said.

On the issues around collective bargaining, the amendment would return the Act to its original position where the duty of good faith did not require the parties to conclude a collective agreement and to continue bargaining endlessly if they had reached a deadlock.

''If they fail to agree they can apply to the Employment Relations Authority for bargaining to be declared at an end.

''In all, the adjustments are small and technical by nature. But we are confident they will help contribute to business confidence and the sort of flexibility which is important for today's workplaces,'' Mr Scandrett said.

dene.mackenzie@odt.co.nz

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