As an employer, you must keep wage and time, and holidays and leave records that comply with the Employment Relations Act 2000 and the Holidays Act 2003. It sounds simple enough, but we all know that it’s often easier said than done. Most employers have a nagging concern that if audited there are likely to be a few gaps (or more than a few in many cases).

Earlier this year, a labour hire company working in the Waikato was fined $57,000 for failing to retain employment agreements or records of wage, time, holidays and leave. Stories like this are a sharp reminder for employers to address any gaps in employment documentation.

So, as a minimum, what do you need to keep on file?

1. You must keep records for seven years – even if the employee has left. You can keep these records on paper or electronically, as long as the information can be accessed easily and converted into written form.
2. For many businesses, your payroll system will keep the necessary wage, time, holiday and leave records. If you don’t have a system which contains this information, it is essential to keep your own accurate records.
3. You must also keep a signed copy of each employee’s employment agreement, as well as current signed terms and conditions (if amended since the agreement was signed) and a clear description of all roles.
4. In addition, it is recommended that you keep copies of work visas and drivers licences (if applicable), evidence of compliance with health and safety responsibilities, and contact details for each employee as well as their ‘in case of emergency’ contact.

What happens if you don’t keep employee records?

If you don’t have the required documentation, the Employment Relations Authority (ERA) or a Labour Inspector may issue an infringement fine. The minimum fine is set at $1000, with a maximum of $20,000 per three-month period if there are multiple breaches.

As well as being a legislative obligation, good record-keeping prevents misunderstandings and protects you and your employee if there is a problem. As such, it is also important to retain all documentation pertaining to performance and disciplinary processes and investigations, at least until such time as any formal warning expires. In a large proportion of cases before the Employment Relations Authority, although the outcome itself may be considered fair and reasonable, the employer has fallen short of the procedural requirements in running the disciplinary process. Hence, retaining evidence of your process is essential.

A recent example was an IT worker, awarded $40,000 after it was found that his employer did not provide all relevant information to him, conduct and/or document a thorough investigation process, or issue formal warnings prior to dismissal. Likewise, in July this year, a cruise ship engineer was awarded $44,000 in lost wages and compensation after the ERA found the dismissal process followed by the employer was flawed, and lacking evidence of a proper investigation or fair hearing.

Don’t get caught out! Please call us to discuss how we can help ensure your employee documentation is in order.

In today’s busy life, with smart phones constantly buzzing and demands coming from every direction, it is normal and common for us to get really busy, for matters to become over complicated and for us to forget the basics. When you get pressurised and possibly even stressed, or things seem out of kilter, it is helpful to go back to the basics.  Are you getting enough sleep? Are you eating well and exercising regularly? These are the essentials which keep us grounded, keep us going and keep us sane.

HR is just the same.

Having employees is challenging as you never know what new situation or behaviour you will face each day. It is often in these situations or when we are faced with a crisis that we realise there are gaps in our HR policies or processes. These are the foundation of effectively managing your team, yet often they are overlooked.

The starting point for dealing with an employee issue is to reference back to your employment related documentation. What is in the job description? What is in the code of conduct? What is in the terms and conditions? What is in the employee handbook? What does the Employment Agreement say? What is in the policies?

Do you have a provision in your employment documentation that relates to the situation you are facing and could provide the solution as to how to handle the situation? Have you set clear expectations for your team members and have these been documented and well communicated?

Too often, however, when we reach for the Employment Agreement, appropriate policy or other essential employment documents, we realise that there are critical gaps. Given the particular circumstance at hand, this is no help to us. A person transgressing can wriggle free when there are holes in the employment documents, and the situation can be, or can become, difficult to remedy.

The key to being confident about handling whatever HR issues are in front of you is to ensure you have the HR  basics covered before you need them. A solid IEA, backed by comprehensive policies and a code of conduct is worth its weight in gold when you have a tricky employment situation. It makes sense for every employer to review these annually to make sure they are in line with legislative changes, and to ensure they have been well communicated to their team members. Communication in advance of an issue can avoid the occurrence of the issue altogether.

Most employees don’t deliberately break rules. When they do, it is often a combination of pressure, a difficult situation or a lack of understanding of workplace expectations and standards. Having sound employment foundation documents not only helps minimise risk, but also helps your team to feel secure and confident in the knowledge that they understand the behaviours and performance standards expected of them.

Just like lack of sleep, it is often not until we get cranky and stressed that we realise we need an early night. Don’t make the same mistake with your team. Make sure you have all your HR basics covered before you need them.

When was the last time you reviewed your HR employment documentation. Positive People can help you make sure you have the right foundations in place to manage your team well.  Call us to find out more. Click here for more information.

The country has been obsessed with New Zealand sporting success over the past few weeks, as we have been treated to high intensity, highly competitive and exciting yacht races and rugby games.

All of New Zealand cheered when the Emirates NZ crew held the Americas Cup high, and we wondered how to feel on Saturday night as the Lions game ended in a draw. Such sporting events inspire New Zealanders, bring out our national pride and encourage us to see what is possible if we aim high.

And then the victory parade is planned…..and despite the exciting spectacle on offer, what about those of us that just can’t have the time off? It’s a fact that many New Zealanders work in industries where making up the time later just isn’t possible – think construction, manufacturing, distribution, retail and care workers. As understanding as Kiwis are, a sign on a shop front saying, “Closed for the Americas Cup Parade” just won’t cut it when you are in desperate need of sales (or groceries).

So, looking ahead, what can you do to make sure your team don’t miss out on important games and events, but also keep your business ticking over and customers satisfied. Here are a couple of ideas:

1. If possible, change or adjust your roster around the timing of the event. Can your team start early or late and get their 8 hours done at a different time?
2. Put the TV or radio on. While it’s not the same as a live game, watching or listening to an event together can inspire a team and be great team building. If it’s a short event, take a quick break and cheer your team on together, or put the radio on so everyone can hear the commentary.
3. Add in an extra shift. We know a business that added a Saturday shift during the rugby World Cup so that their team could work shorter shifts on game days but still achieve their schedule. This was very well received by the team, meant they kept their hours, and customers still received their goods on time.
4. Ask for volunteers to work for others. While we saw some team members get very excited about the Americas Cup parade, a good many didn’t see joining 50,000 people in the rain as a great way to spend their afternoon. Getting the team to work together to cover others can build team morale, and ensure no one misses out.

National events are a great way to build Kiwi pride and morale. We just need to be creative with our thinking and everyone on your team can celebrate the things which are important to them.

At Positive People we understand HR, the environment and your team, and we are happy to help.

If you would like to talk to us to see if a free HR Check Up is a good fit for your business, contact the team at Positive People on 09 445 1077, or email us at info@positivepeople.co.nz.

If you would like to check available times to book your HR Check Up click here.

Recently the government announced a number of changes to the rules for people applying for skilled migrant visas, effective 14 August 2017. The change predicted to have the biggest impact is the increase in the ‘remuneration threshold’. Applicants who will earn less than the median New Zealand income of $48,859 won’t get any points, even if their job was previously considered as skilled. It will also become harder for their families to relocate to New Zealand with them.

Although your current employees already on a skilled migrant visa will not be immediately impacted, when it is time to apply for a new work visa they will need to meet the new remuneration threshold to be successful. It is also important to note that people applying for a temporary “Essential Skills” work visa can earn less than the $48,859 threshold, but only for a maximum of three years. After this, they will need to ‘stand-down’ and re-apply.

With the recent changes, you may be wondering what can you do to help prospective employees navigate the visa application process? As an employer, you can:

• Work with a licenced immigration advisor
• Only provide information that comes directly from the Immigration NZ visa form
• Direct them to the Immigration NZ website so they can complete the application themselves

You cannot:

• Give any form of immigration advice, including advising on what type of visa to apply for or what they might qualify for
• Give guidance on how best to answer questions on the form
• Represent them to Immigration NZ

Remember the importance of doing your due diligence when hiring someone who already holds a valid work visa.

We recommend you always ask to view and also take a copy of an applicant’s passport and work visa. This allows you to check when the work visa expires and any restrictions that may apply. It is your responsibility as the employer to ensure that they can legally work for you. The maximum penalty for unknowingly employing someone who is not entitled to work in NZ is a fine of $10K. The maximum penalty for allowing or continuing to allow someone to work while knowing that person is not entitled to, is a fine of $50K.

How we can help

It’s likely that, as a result of the recent policy changes, employers will be increasingly interested in becoming accredited by Immigration NZ. The accreditation process involves collating your organisation’s HR information, and often requires background HR work to support and strengthen the application. Positive People can assist with this. We can also put you in touch with licenced immigration consultants and offshore recruitment experts.

Contact us today to discuss your needs.