Is Your Business Compliant With Your Modern Award?

If you’re running a business in New Zealand, it’s crucial to be familiar with your employees’ entitlements. For instance, you should be well-versed in the Minimum Rights of Employees which outline the fundamental entitlements for every employee in New Zealand, irrespective of their employment agreement.

So, if your employees are covered by an Industry Award, what are your obligations as their employer?

What Is An “Industry Award”?

An Industry Award stipulates minimum entitlements for employees within specific sectors. You can find the relevant award for your industry through the Employment New Zealand’s Pay and Wages information.

These entitlements include:

• Wages
• Working hours
• Overtime
• Work schedules

As the employer, you must ensure that you are providing your employees with their entitlements under the Industry Award that applies to them. It’s also important to note that these Award entitlements are in addition to the Minimum Rights of Employees.

If your business has a Collective Agreement, then the specific award may not apply to your employees. However, this depends on the terms of the agreement. For instance, if the base rate of pay is less than what is stipulated in the award, the award entitlements will still apply.

How Do I Ensure I’m Complying With The Law?

As an employer in New Zealand, you need to identify and understand which Industry Awards, if any, apply to your employees. There may be situations where different awards apply to staff within the same organisation, so it’s essential to check for each employee. You can review the guidelines provided by Employment New Zealand.

It’s crucial to adapt to any new changes, particularly if you have an arrangement where you’re paying your employees an annual salary that includes compensation for overtime.

Remember to keep accurate records of any overtime worked, and clearly explain to your employees how their salary has been calculated.

How Can I Ensure I Am Compliant?

Staying on top of all your responsibilities to your employees can be challenging. There are numerous employment laws to consider, so seeking legal assistance is advisable.

At Sprintlaw, we offer an Award Compliance package where our lawyers help you remain compliant with the award that applies to your business.

As part of the package, you will receive:

• A high-level review of your employment contracts
• A written summary of the key award provisions that apply to your business
• Phone consultations with a Sprintlaw lawyer who can answer your legal questions

This package does not determine whether an Award applies. If you need help determining whether an Award applies, please see our Award Determination package.

Need Help?

Employers have numerous responsibilities to their employees beyond the Minimum Rights of Employees. Therefore, it’s recommended that you seek quality legal assistance to ensure you are compliant with the relevant provisions of the award that applies to your industry.

If you would like a consultation on your options going forward, you can reach us at 0800 002 184 or [email protected] for a free, no-obligations chat.

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