dynamic logo

HR & Payroll Add-on for Australian Businesses

Search

“ The Ultimate Guide to HR Compliance in New Zealand in 2024 ”

In 2024, the laws about workplace safety, paid family medical leave, and workers’ rights are always changing and evolving. Recognizing these shifts is crucial for ensuring HR compliance and guiding your organization through this dynamic landscape. So, you have to understand that this will affect the way your organization operates. 

Given all of these changes, multistate compliance will be more crucial than before. Therefore, having strong HR rules reduces risk to your company.  

In this article, we will talk about the rules of HR compliance in NZ to ensure you have the right implementation strategy. 

Let’s start!

Time attendance management system
payroll

How does Payroll Work in NZ?

In New Zealand, employers, regardless of staff size, are responsible for payroll tasks. This includes deducting income taxes and KiwiSaver payments from employees’ paychecks, as well as paying Employer Superannuation Contribution Tax (ESCT) on all employer contributions. You might need a little help from the New Zealand payroll guide by the authorities. You need to understand all the aspects to make it efficient and smooth. 

How do Salaries Work in New Zealand?

Employers commonly opt for salaries when employees have a fixed number of hours per week. Salary negotiations typically involve agreeing on an annual rate, leading to a consistent, predetermined payment schedule, whether weekly, fortnightly, or monthly.

salary

Guide to the HR Compliance in New Zealand in 2024

As business owners, you need to know the compliance seriously. So, here are some of the points you need to keep in mind. 

Up to 1840, New Zealand law was based on Māori customary law, which is still recognized if certain criteria are met. The legal system, which was originally based on British law, has developed into a unique entity. Treaties and international law have also influenced New Zealand law, particularly since the 1960s. 

It is based on common law principles in terms of labor law. Notwithstanding the absence of a minimal code in New Zealand employment law, businesses are required to protect specific employee rights.

New Zealand employers are responsible for ensuring the minimum rights of all employees and providing protection in any workplace. These rights apply universally, irrespective of formal employment agreements. They play a vital role in safeguarding employees, promoting safety, preventing discrimination, and encouraging good faith practices. 

Additionally, employers have the flexibility to grant additional rights, such as extra sick leave, at their discretion. Some conditions, such as employee contracts, minimum wage, overtime payment, leave calculations, part-time employees, public holidays, breaks, etc, are the basic ones every company must provide. For example, a 90-day trial is also crucial to help employers and employees see if they are a perfect fit.

A proper employment agreement is essential for ensuring successful business operations. It defines role expectations, promotes a positive working environment, and serves as a point of reference in conflict resolution. In New Zealand, failing to submit an agreement can result in a $1000 fine per employee and a lack of legal standing in disputes. Important Considerations:

  • Signing Validity: Although signatures are typically required, agreements may still be valid without them.
  • Minimum Rights: Legal employee rights apply, even if not explicitly stated in the agreement.
  • Rights Preservation: Agreements cannot diminish or trade-off minimum rights.
  • Union Protection: The agreement type depends on union protection for the employee.

Here is what you need to include in the agreement:

  • Employer and Employee Names
  • Job Description
  • Workplace
  • Agreed Work Hours
  • Employment Type (Fixed-term or Ongoing)
  • Wage/Salary and Payment Terms
  • Dispute Resolution Explanation
  • Public Holiday Compensation
  • Employment Protection for Relevant Employees
  • Other Agreements (Probation, Trial Periods, Availability)

Workplace policies are vital parts of organizational management because they articulate the mission, values, and expectations for employee behavior and performance. They establish a decision-making framework that promotes integrity and fairness while mitigating legal, financial, and safety concerns. To ensure effectiveness:

  • Communicate policies clearly and consistently to all staff.
  • Ensure that staff are aware of, understand, and follow policies, including the penalties for breaches.
  • Obtain employee acknowledgment by having them sign off on each policy, verifying their comprehension.

Example workplace policies cover various aspects such as Code of Conduct, Health and Safety, Recruitment, social media, working from home, and others suitable to your company.

Independent Contractors

Independent contractors can help with certain duties in your small business. However, according to the Ministry of Business Innovation and Employment, simply declaring someone an independent contractor does not qualify them as one. Here are the differences:

 

CriteriaEmployeesContractors
Type of AgreementContract of services (Employment Agreement)Contract for services (Independent Contractor Agreement)
PaymentSalary or wageInvoice the business or principal
Employment RightsHave all minimum employment rightsNot covered by most employment-related laws
ControlUnder the employer’s control, using the employer’s tools and uniformWork independently with own tools, no employer supervision
ExclusivityOften work exclusively for the employerHave their own business, work for many principals
DelegationMust complete duties personallyCan usually sub-contract or delegate tasks
Record KeepingEmployers must keep recordsBusiness is not obliged to keep employment-type records

Performance Management

As a business owner, you need a team of qualified individuals working together to achieve development. Creating an atmosphere in which employees can thrive, remain engaged, and understand performance goals is critical. 

However, obstacles may develop, and having performance management regulations helps recognize top performers and resolve concerns to avoid complaints. It is an employer’s responsibility to address problems in good faith, which includes giving employees genuine opportunities to improve while ensuring they understand performance standards. 

Failure to do so could result in personal grievance claims. If you come across subpar work, consider the following actions to correct it.

Workplace Health and Safety

Employers (defined as “Persons Conducting Business Undertaking” or PCBUs) and workers (including employees and contractors) have specific health and safety requirements under the Health and Safety at Work Act 2015. PCBUs, which include employers, self-employed individuals, and managers, are primarily responsible for workplace safety. Their responsibilities include:

Workers' health and safety responsibilities are:

Open communication is essential for the success of the relationship between PCBUs and employees. Workers should feel free to raise issues, and PCBUs should be willing to listen and clarify expectations in return.

Bottom Line

Now, as a company owner, you have some responsibility towards your employees. From performance reviews to salary management and payroll systems, you have to be sure about everything. 

If you are a small business and still have a long way to go, having a consultation from a well-reputed company is a good idea. So, do look further and talk to the payroll software experts at DHRP now.

INTERESTED

Get in Touch with us Today !



    You consent to the processing of your personal data by clicking on the button. Terms of Use

    HR & Payroll Software For Finance

    Download Template

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.

    Download Template

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.

    Download Template

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.

    Download Template

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.

    Download Template

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.

    Download Template

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.

    Download Template

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.

    Download Template

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.

    Join The Team

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.

    Download Template

    You consent to the processing of your
    personal data by clicking on the button.
    Terms of use.