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Department. It applies to all wages,salaries, and extra payments (forexample, bonuses and lump sums).Wages and records - Generally, theadult minimum wage must be paidto employees aged 16 years andover. Minimum pay rates are usuallyreviewed each year by the NewZealand Government. Employerscan’t pay employees differently ifthe only difference is whether theyare male or female. There are legalrequirements for paying wages andkeeping wage, time, holiday and leaverecords in New Zealand.ACC (Accident CompensationCorporation) - ACC is a “no fault”scheme which covers any accidentthat occurs in New Zealand, includingworkplace accidents. Put simply, ACCis an “insurance” that addresses anycompensation and income lost as aresult of an accident, whatever thecause. Employers are legally requiredto pay annual levies for all employeesemployed by it based on the natureof the profession and the number ofemployees. Employees also pay ACCpremiums which are deducted alongwith PAYE. When an employee isinjured in the workplace, the employeris obliged to pay the first five daysthe employee is absent. If it is not aworkplace accident, then the employeris not obliged to do so.Independent contractorsFor completeness, we also make noteof another type of relationship thatexists separately from the employmentrelationship, that of an independentcontractor relationship arising betweena principal and contractor. Contractorsare commonly engaged under anindependent contractor agreementor a “contract for services” and do notderive the same rights and benefits asemployees do under the applicablelegislation in New Zealand.Normally it is relatively straightforwardas to whether a person is engagedunder an employment agreement oran independent contractor agreement.However, the types of agreementsentered into between the partiesare not necessarily conclusive of thenature of the relationship betweenthem. They can be challenged by eitherparty by making an application to theEmployment Relations Authority or theEmployment Court which will examinethe situation using a number of tests inorder to determine the real nature ofthe relationship.ONGOING OPERATIONALMATTERSFair Trading ActThe Fair Trading Act 1986 isadministered by the CommerceCommission and covers conductrelating to the promotion and sale ofgoods and services. Broadly, it prohibitsconduct in trade which is misleadingor deceptive, the provision of falseinformation and unfair trade practices.It also provides for the disclosure ofcertain consumer information andpromotes product safety.The Fair Trading Act does not compelbusinesses to provide information onits goods or services to consumers inall circumstances, but it ensures thatany information that is provided toconsumers is accurate and prohibits thewithholding of important informationso consumers can be confident thatinformation they receive when makingdecisions is reliable and accurate.18