Changing business laws

Last year’s change in government has resulted in several law changes affecting employers and employees, with more to come.

Leading the changes last year was the decision to increase usage of 90-day trial periods.

From 23 December 2023, all employers in New Zealand, no matter their size, can now use 90-day trial periods. Previously, they only applied to employers with fewer than 20 employees. The trial periods have been opened up to all employers to provide them with greater confidence when hiring new employees.

A trial period must be agreed to by the employer and the employee in writing, and in good faith, before the employee starts work, as part of their employment agreement.

The extension of 90-day trials will not affect other aspects of employment relations, such as the requirement to act in good faith, or worker protections regarding pay, conditions, leave, and health and safety. Employers hiring people on certain work visas will also need to consider any immigration requirements relating to the use of trial periods.

The Fair Pay Agreements (FPA) Act has been repealed, effective from 20 December 2023. Rights and obligations under other employment legislation still apply, and employers, unions, and employees are being encouraged to work together to agree suitable employment terms.

Organisations currently holding any personal information collected for the purpose of the Fair Pay Agreement activities, including bargaining, must now dispose of it, in line with the privacy laws.

Further changes are due in June when Government has indicated it will legislate several tax changes. The proposed changes include:
• Increasing income tax thresholds
• Increasing eligibility for the Independent Earner Tax Credit (IETC)
• The FamilyBoost childcare tax credit
• Increasing Working for Families tax credits
• Mortgage interest deductibility reintroduced for rental properties
• Higher CO2-emitting vehicles will no longer be subject to fees
• Repeal of the foreign buyers tax.

Previous Post

Sink in, and swing

Next Post

Proactive marketing: Metros Marketing

Leave a Reply

Your email address will not be published. Required fields are marked *