Waikato Business News February/March 2018

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40 WAIKATO BUSINESS NEWS February/March 2018 HR MANAGEMENT AND RECRUITMENT Labour Inspectors cracking down on minimum standards – what does this mean for Employers? If your business depends on employing migrant workers, then you will want to ensure that you are complying with the minimum employment entitlements as defined by the Employment Relations Amendment Act 2016. These minimum entitlements include ensuring that; a written employment agreement is provided, at least minimum rates of pay are made, break entitlements are adhered to, annual, public holidays, sick and bereavement leave are provided consistent with The Holidays Act 2003, a safe workplace is maintained and that accurate pay and holiday records are retained. Breaching these provisions can result in infringement notices and/or penalties being imposed on the employer. A Labour Inspector, the Employment Court and/or the Employment Relations Authority have the power to issue penalties and infringement notices, or in a case where Filipino restaurant workers were exploited, a period of imprisonment and home detention may be imposed on the employer. In addition, employers who receive an infringement notice or penalty for less than minor breaches will be deemed non-compliant with New Zealand employment law and may then be subjected to a set stand down period. This stand down period will exclude an employer’s eligibility to support work visa applications. If the employer has migrant workers employed within their business at the time that they are deemed to be non-compliant, these migrant workers will be able to work up to the expiry of their work visa. However such workers will not be able to extend their work visa with the non-compliant employer. Stand down periods can range from six (6) months to two (2) years. The length of the stand down period will be dependent on the severity of the breach and the subsequent penalty imposed. For example a six (6) month stand down period may result in a penalty of $1000 or less, whereas a two (2) year stand down period may result in penalties of $50,000 plus. The intent of the stand down period is not to penalise those employers who have committed very minor breaches and who demonstrate a desire to comply with minimum standards. Such employers are unlikely to be subjected to a stand down period, however this will be assessed on a case by case basis. There are further implications for an employer who is subjected to a stand down period. If an employer is subject to a stand down period their name will be published on a stand down list that is readily accessible to the public. This list will name the employer, state what legislation they have breached and specify the length of the stand down period they are subject to. The list is updated weekly and is maintained by the Labour Inspectorate. It can be accessed globally and so the implications for an employer could be significant and serious, particularly in regards to hiring migrant workers after the expiry of the stand down period. If an employer is deemed non-compliant and subjected to a stand down period, they will be able to appeal the decision. The employer can request a hearing at the District Court to challenge an infringement notice or an Employment Relations Authority determination. To challenge an Employment Court decision, an employer may apply to the Court of Appeal for leave (permission) to appeal the Employment Court’s decision. Employers who depend on migrant workers to make up the majority of their staff should ensure that they are familiar and compliant with minimum employment standard requirements to avoid being subjected to a stand down period. If you have any questions regarding your obligations to meet the minimum employment legislation standards please feel free to contact us directly. This article is written by Russell Drake, of Russell Drake Consulting Limited, Licenced Contractors to the Employers and Manufacturers Association (EMA) who act exclusively for Employers in all employment situations, including ensuring businesses are meeting minimum employment legislation standards - see www.russelldrakeconsulting.co.nz or phone (07) 838 0018. Russell Drake Consulting Ph: 07 838 0018 www.russelldrakeconsulting.co.nz Securing The Candidate You Want In today’s tight labour market, sourcing and securing the right staff certainly has its challenges. It is no longer as easy as putting the advert out in print, social media or on an industry page with the expectation that great candidates will apply. Competition in securing the right candidate comes from several sectors, the hardest one to often overcome is the employee’s current employer working hard to retain their key employee. This stance can take many different forms, particularly when the employer is taken by surprise that their employee is considering leaving. In this situation the employer may rush to offer the employee the “ultimate package” in anticipation that it will be too hard for the employee to resist. This may include a substantial salary/wage increase along with other benefits for the employee. The question that the recruiting employer has to ask themselves in this situation is: are you prepared to compete? It is important when looking to source new employees that you have thought out well in advance what the person you have in mind might be looking for; is it about the training and development opportunities, a change of culture, career development prospects or more challenge within their role/ career, or increased remuneration? To secure the right candidate into your business you need to be clear from the outset as to what your offer of employment may look like. In a tight labour market, differentiating what you can provide will be important. In seeking this differentiation, you will need to be flexible and open minded, you may need to consider something ‘outside the box’ to entice the person you want to move across to your business. Understanding why the candidate is looking to move, and what they are looking for ‘as a total package’, will assist you greatly in putting your final offer together. High-quality candidates are not going to make a change without considering all options and they will often have more than just your opportunity on the table. Knowing your competition, and what they might offer as a ‘total package’, will also be an important part to securing the candidate you want. With this in mind, given the state of the current labour market, you will also need to move quickly taking weeks to ‘work through a process’ will not be your friend in this situation as quality candidates are often snatched up quickly by other employers. Your work has only just begun at the conclusion of your interview, negotiating with the candidate will now be an even more important part of the process, ensuring that you can secure your next successful employee. Fegan & Co Ltd are a Specialist Recruitment Company who have been working with a large range of clients through the primary and agribusiness sectors, both in New Zealand and overseas, for the past 20 years. Our aim is to understand the needs of the clients as well as the candidates, and to produce ‘win-win’ employment solutions for both parties. We provide a wide range of services that focus on enhancing both client and candidate care which ultimately then results in a successful employment relationship being formed. Call us today to discuss your recruitment requirements on (07) 823 0105. Linda-Maree Drake Fegan & Co (2017) Limited | Phone: 07 823 0105 | www.fegan.co.nz J7826P J7826P
HR MANAGEMENT AND RECRUITMENT WAIKATO BUSINESS NEWS February/March 2018 41 Are you ready for changes in the remuneration market? We have seen considerable change in the remuneration space over the past 12 months which will likely have an ongoing impact on pay rates in New Zealand. Specifically, the Care Workers Pay Equity Settlement, NZX Changes on the reporting of Executive salaries and the policy announcements made by the new Government. The first half of last year saw the settlement of the care workers pay equity claim, although this increase Cathy Hendry Senior consultant Strategic Pay Tauranga + mob 027 498 9812 + cathy@strategicpay.co.nz was funded by the Government, the funding failed to cover the increases needed to maintain relativities. This one Nigel Murphy Consultant Strategic Pay Hamilton + mob 027 403 1242 + e nigel.murphy@ strategicpay.co.nz off settlement has had ripple effects in the in health and not for profit sector with many organisations looking at ways to cover the funding shortfall with reports of job losses, restructures and even one rest home choosing to close operations. In October 2017 a new NZX Corporate Governance Code came into effect. Included in this code is the requirement for listed organisations to have greater transparency around CEO, director and senior executive pay. Listed organisations will also need to state their Remuneration Policy. While this is only directly affecting listed organisations, it will be interesting to see changes come into effect around the middle of this year when the majority of the Annual Reports are released. Greater transparency will hold organisations accountable for remuneration decisions and it is likely that public sector organisations will also adopt these reporting standards. Finally, the new Labour-led Government has announced two major initiatives which will directly affect pay. Firstly, the announcement that the mimum wage will increase to $20 p/h by 2021 and secondly that they are going to focus on closing the gender gap in the public sector. The minimum wage increases are a major concern for organisations with large numbers of minimum wage workwww.strategicpay.co.nz ers. Depending on how these increases are phased in, organisations can expect large year on year increases of between 4-7 percent. What is difficult to determine with these increases is what the flow on affect will be. With an increase at the bottom of the market, there will need to be some movement further up to account for relativities. We won’t know the full affect until the increases are applied but we would expect to see increasing wage pressure for all organisations over the next 3-4 years. In terms of closing the gender pay gap, this is a topic that is gaining momentum and many private sector organisations are looking to address this important issue. Gender disparity can appear in both small and large organisations and we often find that it is worse where organisations don’t have a clear remuneration policy or structure. SMEs could also be more at risk as tend to grow organically. Typically, if an organisation identities the issue early on, it is easier to address. Now more than ever, it is important to be well informed in remuneration strategy and policy. Strategic Pay are running two short courses in Tauranga and Hamilton over the coming months with a focus on Remuneration for SME’s. You can register for these on our website www.strategicpay. co.nz/Workshops . Our Tauranga Course will be on Wednesday 21st March and our Hamilton Course will be on 11th April. If you would like to know more, please get in touch with your locally based consultant on the numbers Performance + Rewards = Success Create Success by Rewarding Performance At Strategic Pay we understand local businesses and your unique issues. Talk to us about: • Organisational Structure and Design • Remuneration and Reward • Performance Management www.strategicpay.co.nz | info@strategicpay.co.nz Auckland 09 303 4045 Hamilton 07 834 6580 Wellington 04 473 2313 Christchurch03 353 0909 Dunedin 03 479 0637
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