As part of a foreign fishing crew working in New Zealand, your work visa allows you to work in New Zealand waters until its expiry date. Minimum wage Minimum wage rates apply to all employees aged 16 and over, who are full-time, part-time, fixed-term, casual, working from home, and paid by wages, salary, commission or piece rates some exceptions.
Employees have to be paid at least the minimum hourly wage rate for every hour worked: Salaried employees can divide their pay by the number of hours they work in a pay period to make sure they earn the minimum wage. For example, starting-out workers must be paid at least the minimum starting-out wage rate , and trainees over 20 must be paid at least the training minimum wage rate. Employees paid piece rates must still be paid the minimum wage for each hour worked.
The minimum wage does not apply to people who have a minimum wage exemption permit. Types of wage rates There are three different types of minimum wage rates: adult, starting-out and training. Current minimum wage rates Minimum wage rates are set by the government and are reviewed each year. Previous minimum wage rates Minimum wage rates from — Minimum wage exemptions Labour Inspectors may issue minimum wage exemption permits to employees who have a disability that limits them carrying out the requirements of their work.
Agricultural industry Many employees in the agricultural industry are offered accommodation and other goods and services as part of their employment. Although opinion on the value of the ER Act remains divided in some sectors, the predominant view is that this latest Act introduces a considerably more orthodox and moderate approach to labour market regulation. The ER Act is supplemented by a number of other statutes that have implications for the employment relationship and the labour market see the next section below.
Where litigation or disputes arise between parties to employment relationships, and those disputes involve the interpretation or application of one or more of these statutes, the task of interpreting and applying the statute falls to the Employment Relations Authority, the Employment Court and the New Zealand Court of Appeal.
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On matters relating to labour law, there is no appeal from the New Zealand Court of Appeal to the Privy Council unlike in a number of other areas of New Zealand law. There is considerable scope for courts to apply and develop common law principles. For the most part, these principles derive from the British common law.
Collective agreements and individual employment agreements also record rights of obligations of employers, employees and their representatives and are enforceable under the ER Act. Although these documents are binding on the parties concerned, they do not constitute "law" as such.
The most important statutes applying to the labour market and to the employment relationship in New Zealand are:. The majority of employees in New Zealand work under employment agreements of an indeterminate duration, which can be terminated for just cause. However, fixed term employment agreements are permissible provided the employer has genuine reasons based on reasonable grounds for specifying that a particular employee's employment will come to an end at the conclusion of a specified term. Collective employment agreements must include an expiry date, which provides for a term of no longer than three years.
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Upon the expiry of such agreements, the employment of the employees who were covered by those documents continues on the same terms, albeit on an individual basis, until such time as a new collective agreement is agreed to, if at all. It is also permissible to have part-time, casual, and apprenticeship employment agreements, and such agreements are enforceable in the same fashion as employment agreements of an indeterminate tenure.
There is no provision in New Zealand law for the suspension of a contract of employment in times of plant closure or economic downturn. Such cases are dealt with by way of redundancy termination. Employment agreements can, however, be suspended during industrial action where, because of strike action taken by their colleagues, there is no longer work available for particular employees.
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Although the employment relationship continues during periods of such suspension, the employer has no obligation to pay wages while the suspension remains in force. Under the ER Act, the termination of any employee must be for sufficient cause and carried out in a procedurally fair manner. Where an employee's employment is terminated in a manner inconsistent with these two requirements, that employee can commence a personal grievance claim, the remedies for which include reinstatement, an award of lost wages and benefits, and compensation for humiliation and distress.
Reasons for justifiable termination include redundancy where an employee's position of employment is surplus to the requirements of an employer , poor performance, serious misconduct, and inability to perform employment due to continuing illness. Hours of work and overtime payments are matters to be agreed between each employee and their employer. The usual working week is 40 hours, although there is nothing to prevent employees and employers agreeing to a great or lesser number of working hours during the week.
In many professions there is no additional payment for overtime, although in a number of blue-collar sectors, collective agreements and individual employment agreements specifically provide for overtime payments. Where employees work on one of the 11 annual public holidays, and that day is usually a working day for that employee, then by law the employee is entitled to a paid day off at a later date. The entitlement to a minimum of 3 weeks paid holiday per year after 12 months continuous employment is set out in the Holidays Act, as is the entitlement to at least 5 days special leave for each 12 month period of employment after the first 6 months continuous employment.
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Special leave can be used for such matters as illness of the employee, his or her spouse of dependants, and bereavements. The Parental Leave and Employment Protection Act provides minimum entitlements to unpaid parental leave for both mothers and fathers in respect of the birth or adoption of a child. The leave entitlements under the Act are for periods not exceeding 14 weeks for maternity leave 2 weeks for paternity leave , a total of 52 weeks for extended parental leave , and 10 days special leave, which can be taken by a female employee who is pregnant, before she takes maternity leave, for reasons connected with her pregnancy.
The New Zealand Parliament is currently considering a proposal to introduce paid parental leave. The Equal Pay Act prohibits any employer from refusing or omitting to offer or afford any person the same terms of employment, conditions of work, fringe benefits, and opportunities for training, promotion and transfer as are made available for persons of the same or substantially similar qualifications employed in the same or substantially similar circumstances on work of that description, by reason of the sex of that person.
The Human Rights Act also expressly prohibits discrimination on various grounds including sex, which includes pregnancy and childbirth, marital status, religious belief, ethical belief, colour, race, ethnic or national origins, disability, age, family status and sexual orientation. At present, there are separate minimum wages for workers between the ages of 16 and 20, and for workers 20 years of age and upwards.
By international standards, the regulation of unions in New Zealand is not excessive. In addition, various provisions in the ER Act provide a simple process for registration and operation of unions.
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These include sections dealing with:. Perhaps the most notable feature of these provisions is the requirement that in order to be registered as a union, a society must be independent of, and constituted and operated at arm's length from any employer. Unions can represent their members' collective interests and their individual interests. The minimum number of members required to form a union is Collective bargaining can occur at any level within the labour market, including nationally, and at the level of industry, multi-employer, specific enterprise and enterprise.
A collective agreement can, by law, bind as few as two employees. This duty applies to unions and employers bargaining for a collective agreement. Collective bargaining commences by the issuing of an initiating notice by either a union s or an employer s. Although the duty to bargain in good faith sets out certain minimum requirements such as the obligation to meet and consider and respond to proposals made by each party the duty does not compel agreement on any particular term or the ultimate settlement of a collective agreement.
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There is no provision for arbitration to deal with instances where parties are unable to settle a collective agreement, although mediation services are available. Both employers and employees are entitled to engage in economic sanctions strikes and lockouts to support their bargaining claims. Collective agreements may contain any matter agreed to by the parties, provided it is not contrary to law or the ER Act.
Collective agreements must contain certain minimum provisions including:. Where a new employee commences employment in a work place and a current collective agreement exists in the workplace that covers the type of work that employee will perform, the employee's terms and conditions for the first 30 days of their employment shall automatically be those set out in the collective agreement.
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At any time during the 30 days or thereafter, the employee has the right to join the union, which negotiated the collective agreement, and upon doing so the employee becomes bound by the collective agreement. Where there is no applicable agreement in the work place, or the employee chooses not to join the union that negotiated that agreement, the employee's terms and conditions will be those set out in an individual employment agreement entered into by the employer and the employee. Strikes and lockouts are unlawful during the tenure of a collective agreement except in certain circumstances, such as where the strike or lockout relates to health or safety or it occurs in the last few weeks of a document's term in support of new collective bargaining.
Where employees who work in an essential service wish to strike and that strike will affect the public interest, a prescribed period of notice must be provided to the employer and the Chief Executive of the Department of Labour. Under the ER Act, mediation services are to be made available to parties in essential services before they strike so as to enable the parties to endeavour to mediate their differences and avoid industrial action. Lawfully striking employees cannot be lawfully dismissed, nor can they be discriminated against by reason of the strike. Under the ER Act, it is lawful for an employer to ask staff members to perform the tasks of their striking or locked out employees, provided the employees asked to perform the work in question:.
The ER Act places a heavy emphasis on mediation. Wherever an employment relationship problem arises the parties are encouraged to attempt to resolve it through discussions amongst themselves. An employment relationship problem can be anything, which causes a problem in the employment relationship such as a personal grievance, a dispute about the operation of an employment agreement or claim of breach of a statutory entitlement.