Change is coming: Employment Counsel’s Sanam Ahmadzadeh Salmani


Several upcoming changes to New Zealand employment law may benefit both employers and employees in the long run.

Probably the most hotly debated change is the introduction of an income threshold for employees claiming personal grievances for unjustified dismissal. The change means employees earning above $180,000 per annum will be unable to raise an unjustified dismissal claim.

EMPLOYMENT COUNSEL’S SANAM AHMADZADEH SALMANI

Employers and employees will be able to opt back into unjustified dismissal protection if they choose, or negotiate their own dismissal procedures between them. For employers, the change enables businesses to ensure they have the best fit of skills and abilities for their organisation, allowing employers more flexibility in hiring for senior positions, without having to risk a costly and disruptive dismissal process if things don’t work out.

This legislation will allow employers and employees to have more open and frank conversations. In some respects, this will create transparency, allowing performance concerns to be addressed quickly.

The Government also introduced changes to remove or significantly reduce ‘remedies’ for employees when they are found to be at fault in employment disputes, for example when an employee’s behaviour has contributed to the breakdown in the employment relationship. This includes removing all remedies for employees whose behaviour amounts to serious misconduct and removing eligibility for reinstatement in a role or compensation for hurt and humiliation when the employee is found to be at fault.

The changes are expected be progressed through the Employment Relations Amendment Bill later this year.


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