Embracing Change: What's Shaping the Future of Employment
In the ever-evolving realm of employment, change is the only constant. But as we stand on the brink of a potential shift in government, the landscape appears to be in a state of anticipation. Many anticipated changes are on hold, while others could take a different form if political winds shift. In this blog, we're delving into a recent development that deserves your attention and shedding light on the looming Holiday Act alterations.
Extending the Personal Grievance Timeframe
As of June 13, 2023, the timeframe for raising personal grievances related to sexual harassment has been extended. Employees now have a window of 12 months to initiate such claims, a significant leap from the previous 90-day limit. It's important to note that this extension applies exclusively to sexual harassment claims originating on or after June 13, 2023, even if the employee has left their job during that 12-month period.
Legally, all employment agreements must provide a straightforward explanation of how to seek resolution for employment-related issues, including the timeframe for personal grievances. It's crucial that you update your employment agreements to reflect this new timeline. Rest assured, we've been diligently working through our client list to ensure your templates are up to date. Feel free to reach out if you'd like us to assist in updating your templates on file.
The Holidays Act
The Holidays Act has been a hot topic for some time, with significant adjustments on the horizon. To bring you up to speed, the government established the Holidays Act Taskforce, prompted by joint requests from unions and employers, to recommend improvements to the Holidays Act. Their suggestions include:
Clarity and Transparency
Introduction of new methods for employers to calculate employee leave entitlements, accommodating variable working arrangements.
Implementation of new leave payment formulas and definitions for enhanced clarity in payment calculations.
The introduction of eligibility tests for Family Violence, Bereavement, and Sick leave.
Adoption of an 'Otherwise Working Day' test to determine the applicability of these entitlements.
A review process for 'Pay-As-You-Go' annual holiday entitlements throughout employment.
Increased Leave Access
Eligible employees to access bereavement leave and family violence leave from their first day of employment, alongside accruing sick leave. Others can avail these benefits after three months, meeting new eligibility criteria.
Annual holidays can be taken on a pro-rata basis in advance of the full entitlement.
Bereavement leave is expanded to include more types of family members.
Employees returning from parental leave will be paid based on the standard rules for annual holidays, rather than the average weekly earnings over the last 52 weeks.
Transparency Matters
New requirements to be established for the process of closedown periods.
Additional record-keeping requirements ensure employers have the necessary data for accurate calculations and tests.
Employers are mandated to provide pay statements in each pay period for greater transparency in leave and pay for employees.
While a bill encompassing these recommendations is currently in the works, it won't be introduced before the upcoming election. Even if introduced, there's a lengthy legislative journey ahead, providing ample time for employers and payroll providers to grasp the new regulations before they come into effect.
We anticipate further developments in employment legislation after the election and will keep you informed of any changes that warrant your attention. Stay tuned!
For any questions or if you would like us to review your Employment Agreement contact us on 0800 HR FOR U or upload your Agreement here for a complimentary review.
Paige Croft
ER Partner