Recent Changes - 90 day trials and Minimum Wages

90-day trials are back for all employers! If you have a new employee starting, they can have a trial period clause included in their employment agreement.

Here are a few key points:

·     All NZ employers can now use 90 day trial periods in their employment agreements. Make sure your clauses are valid and legal.

·     If you are already using trial periods in your business, now is a good opportunity to check the process and your employment agreement templates to ensure it meets legislation.

·     If you are not using trial periods, consider whether you will in future. You do not have to use a trial period, you can still use a probationary clause for some protection.

Remember that a trial period must be agreed to by the employer and employee in writing, and in good faith, before the employee starts work, as part of an employment agreement. Make it clear to your new team member that there is a trial period clause in their agreement.

There are a number of ‘must-dos’ in any employment relationship. Remember that you still need to act in good faith, ensure you meet legislation in terms of pay, conditions, leave, and health and safety.

If you'd like your employment agreement reviewed then get in touch.

Minimum Wage

Every year the government reviews the minimum wage for employees, not always with an increase. This year the minimum wage will increase to $23.15 (gross) per hour. Remember that this flows through to salaried individuals, for example if your employee earns $50,000 per annum, that is $24.04 per hour. If they work overtime their hourly rate may decrease to below the minimum wage. Another area to be cautious of is if you include the employer KiwiSaver contribution in their salary. This may mean their hourly rate ends up being below the minimum wage.

If you'd like this assessed or checked, please let us know.