Staying informed about legal obligations is essential for small business owners, and many recent law changes may affect your day-to-day operations. This blog gives an overview, along with resources to find out more.
Use 90-Day Trial Periods for flexible hiring
Whatever size business you have, you can now use 90-day trial periods when you take on new staff. Before, this was only allowed for businesses with fewer than 20 employees. The change means you can have more confidence taking the plunge to grow your team. You'll be able to see how a new hire fits and performs before you make a permanent commitment.
Action steps:
- Add trial periods to new employment agreements.
- Ensure agreements explain the trial and are signed before employment begins.
- Give your new team member all the support they need to succeed in their trial period.
Update policies for Family and Domestic Violence Leave
As of August 2023, employees of small businesses are allowed to take up 10 days of paid domestic violence leave each year. The law applies to all your full-time, part-time, and casual employees. Offering this support is more than your legal obligation; it can increase morale and loyalty. A team that feels safe can perform. Note that you must not include specific information about the type of leave on payslips to maintain privacy.
Action steps:
- Update your leave policies to include this entitlement.
- Make sure that leave taken is not itemised on payslips.
Negotiate terms freely after Fair Pay Agreements repeal
New Zealand's Fair Pay Agreements (FPA) Act was repealed in December 2023. Now, small businesses no longer need to follow industry-wide agreements. Instead, you have more flexibility to set terms and employment agreements that suit your situation.
This change allows you to tailor your employment offers to attract and retain the best talent for your specific business needs.
Action points:
- Consider how you can create competitive employment packages that set your business apart.
Improve workplace safety to meet new regulations
In June 2023, health and safety regulations saw major changes. Businesses must now establish health and safety committees if asked by a representative or five or more workers. It's about ensuring employers listen to staff concerns and address safety issues. If you don't have systems in place, you'll need to spend some time setting things up, such as stronger processes. However, a safer workplace will save you money and potentially much more.
Action steps
- Set up health and safety committees if your staff ask.
- If your workplace would like a safety committee, run elections for health and safety representatives so that you’re responding to the desires of your employees.
Make sure you’re paying the right wages
The minimum wage was increased to $22.70 per hour from April 2023 for employees aged 16 and over. On one hand, this increase may lift your labour costs. On the other, it's a chance to look at how you can make the most of the talent in your team. Higher pay means you may be able to boost productivity by attracting talent, retaining key staff and lifting employee satisfaction.
Check out our recent blog on getting the best from a diverse team.
Action steps:
- Make sure you are complying with the updated minimum wage for all your staff.
All business owners have a lot of responsibility, but it can help to see legal changes not as barriers but as chances to improve your company. You can build a stronger, more loyal and productive team by adapting quickly and thoughtfully.
Resources, such as https://www.business.govt.nz/news can keep you in touch with changes as they happen. If you’d like personal support getting on top of the obligations of owning a business, consider speaking with your Business Mentor. Although they can't give you legal advice, they're the perfect person to use as a sounding board or ask about potential risks and opportunities.
