Your employer has to keep honouring your employment agreement. ), So you can’t be given a new working from home employment agreement. Still haven't found what you're looking for? He says I have to re-apply for the position, if I am unsuccessful I will be offered redundancy. Some employers are saying they are “suspending” their business to stop paying people. ® Ministry of Business Innovation and Employment, Calculating payments for holidays & leave, Psychometric testing and assessment centres, Things an employment agreement must contain, Offering and negotiating employment agreements, Code of good faith in collective bargaining, Local council Easter Sunday shop trading policies, Problems getting domestic violence rights, Leave and pay entitlements during COVID-19, COVID-19: Guidance for payroll professionals, Employment New Zealand's approach to COVID-19, COVID-19 Workers and Workplaces Assistance Fund, Public, sick, bereavement, alternative pay, Changes to tax legislation for employee share schemes, Holiday and leave entitlement and payment ‘must-knows’, Positive conversations and reaching agreement, What are ethical and sustainable work practices, Demand for ethical and sustainable work practices, End-to-end assurance systems and processes, Identify and minimise labour rights issues, Assessing the impact of structure change on jobs, Restructuring when a business is sold or transferred, The benefits of being a disability confident organisation, Plan to become a disability confident organisation, Disability information and resources for employers, Resources and government support for disabled employees and jobseekers, Employers who breached employment standards, COVID-19 Leave Support Scheme – Work and Income, COVID-19 Income Relief Payment – Work and Income, Applying for employment relations education course approval, Wage subsidy and Leave Support: Complaints about employers, Calculating payments for holidays and leave, Employer's approach to assuring ethical and sustainable work practices, Franchisor's approach to assuring ethical and sustainable work practices, Recruiters and employment brokers approach to assuring ethical and sustainable work practices, having a written employment agreement for every employee, and doing what that agreement requires, keeping each written employment agreement up to date, including documenting any changes that affect rates of pay or hours worked, meeting legislative and any relevant contractual requirements for changing employment arrangements. People can check their eligibility and apply online on the Work and Income website. In relation to COVID this should include providing appropriate protective equipment and making sure you are physically spaced. Some contracts of employment contain a variation clause that can allow your employer to make changes to your contract. If you are available to work – whether at home or not – people should either be fully paid or, if their employer is accessing the wage subsidy, their employer must make “best efforts” to fully pay them and should, at the very least, pay them the full amount of the subsidy. You may wish to contact a Community Law Centre for advice or your union. limiting the duration of the changes to the COVID-19 lockdown; whether all employees are offered the proposed changes; if the wages/salary is reduced, whether work hours should also reduced; what will be the process for employees to agree to the variation. What about workplace health and safety and COVID-19? Call the health line 0800 3585453. The 1737 text line provides support. Agreed periods where the employee is available and not available, this may mean accommodating for work being done in evenings. And they have to pay you for whatever notice period you have in you employment agreement (for example if they have to give two weeks notice, they have to pay you for two weeks from their final decision to make you redundant). Starting a new job is an exciting and challenging time. This is not generally true, unless there is a specific clause in your employment contract that allows for it. This means that normal obligations to keep in regular contact and to act in good faith are more important than ever. What you can do is ensure your employer has confirmed (in writing) that the reduction is temporary. An employer can’t change an employee’s rate of pay without discussing it in good faith and the employee’s agreement. It is important for you to understand the context of the COVID-19 wage subsidy. Any changes made need to be consulted on and agreed to by both parties. I work in a hotel as a head housekeeper. There are some relief packages for business and individuals and increased support for those who have been impacted by COVID-19. It is more than just following the letter of the law. Your employer can cut back on your hours if it says they can in your contact. Some employers and employees may agree to a reduction in hours during the COVID-19 Alert Levels. Work environments are not static and employers can require employees to work outside of their regular working hours. If you have a collective contract, your employer must negotiate any changes with your union. In these situations the employer must follow the usual process for workplace change, which includes giving the employee a fair opportunity to consider and respond to the proposed change. What happens of my employers says I’m made redundant because of COVID-19? Employers and employees must discuss in good faith the implications of COVID-19 on their working arrangements. Can my employer make me use my sick leave or annual leave for COVID-19? Employees who lose their job between 1 March and 30 October 2020 due to COVID-19 may be able to get the COVID-19 Income Relief Payment. This rate cannot be below the minimum wage rate. The wage subsidy schemes support employers and their staff who are financially impacted by COVID-19 to maintain an employment connection and ensure an income for affected employees. Why? The Government’s wage subsidy scheme will be a significant factor in the justification of a redundancy as there is an expectation that employers should access the subsidy before making workers redundant. Does this mean that if your boss says, “I'm cutting your pay” that you can say, “No thanks, I'll continue at the higher rate of pay"? During all Alert Levels, businesses are legally required to pay workers for any work they do and must continue to meet all contractual obligations. Any reduction in hours below your normal level has to be done by agreement. Employers and employees may be considering changes that involve workplaces closing temporarily or reductions in hours. Regular employment law still applies to all employment relationships – regardless of the circumstances that we find ourselves in. This could be a temporary change until the employee can resume their existing job. In some situations, (such as genuine financial, commercial or economic problems, or genuine restructuring of the business), reducing an employee’s rate of pay may be put forward as an alternative to redundancy. Make sure when you cough or sneeze cough and sneeze into your arm, use a tissue not your hand, and wash your hands after coughing, sneezing or using tissues. This video has some simple strong and well-presented messages:https://www.youtube.com/watch?v=SDUkmAdKsJE&feature=emb_title, The Mental Health Foundation has specific tips for looking after your mental health and wellbeing during COVID-19 and getting through based on the five ways of wellbeing: https://www.mentalhealth.org.nz/get-help/covid-19/top-tips-to-get-through/, For people who battle with mental health issues it is a super stressful time as people deal with loss of contacts, medication worries, anxiety and new or increased symptoms of mental distress. retain the employees named in their subsidy applications for the period they are receiving the subsidy, personal grievance for unjustified dismissal. Can my employer reduce my hours? Keeping businesses viable and New Zealanders employed is one of the main priorities during these uncertain times. If there’s not enough work for you, your employer might ask you not to come into work, or to take unpaid leave. No. Working as usual may be difficult for employers and employees due to the impacts of COVID-19. However, the employer’s application for, and the passing through of a wage subsidy, is a separate issue to your rights under your employment agreement. Yes, you must be paid for at least your guaranteed hours every pay period and any additional hours/overtime worked. Employers and employees may be considering changes that involve workplaces closing temporarily or reductions in hours. If the employer is unable to provide work, such as in the current circumstances of a Government ordered lockdown, it is likely you are entitled to be paid, in the absence of a term in your employment agreement which specifies otherwise. Provide you with all relevant information about the proposal to make you redundant, Provide you the opportunity to properly consider this information, Allow you to have input into the decision-making process by allowing you to make proposals. If your employer tries to make you take annual or sick leave make it clear that they cannot legally do so. Dealing with COVID-19 is stressful for people’s mental health. During the Government imposed COVID-19 lockdown, the Government has made a wage subsidy available that employers can apply for to assist them to meet their wages/salary obligations. If it doesn't, they can't do this without you agreeing first. Find out about options to deal with the impacts of COVID-19 in the workplace. It involves treating others fairly using common sense. That means: “Redundancy” is when your employer tells you they can no longer employ you and they are ending your employment agreement.Answer. This is not true. An employer cannot unilaterally change a fundamental term of employment without being at risk of a constructive dismissal claim. If an employer has been placed into receivership the receiver will have responsibility for decisions on running the business and this includes handling the business’s employment relationships. An employer cannot just declare themselves an essential industry and keep going. Only employers with fewer than 20 employees can do this. Employment laws still apply, and the receiver will be required to keep in regular contact with you and act in good faith. If your employer alters your ordinary hours or roster without consent or discussion, and without the express right to do so under the contract, you may be able to claim constructive dismissal and/or damages for any loss suffered … If you want to reduce an employee’s pay based on performance, it is recommended that you undertake a performance review and implement a performance management policy first. You can also log specific workplace problems that you are facing in relation to COVID-19 here. Parties must be responsive and communicative. If your employer takes any money out of your pay, while expecting you to work your normal hours, this would be against the Wages Protection Act 1983. And is it just you or is it all staff? And it’s important to remember you keep your employees well informed during the process. specifying a timeframe for the variation – ie. Employers must retain the employees named in their subsidy applications for the period they are receiving the subsidy. Some employers have tried to claim that the COVID-19 situation is an “Act of God” or “Force Majeure” that allows them to change or cancel contracts. If your employer takes any money out of your pay, while expecting you to work your normal hours, this would be against the Wages Protection Act 1983. The Employment Relations Authority will ultimately decide whether the employer’s decision was one that a fair and reasonable employer could have made. Consult with you before making the final decision. Even if there is a clause like this in your contract, it does not remove the employer’s obligations under the law, including to consult with you in good faith about any changes to your contract. The following factsheets are currently available: Further down this page you can also find information on welfare and benefits and your physical and mental health during the pandemic. Even if you are a casual workers still have rights. Employers can check their eligibility and apply online on the Work and Income website. The law says that any changes to employment agreements must be talked about and agreed in good faith. Parties should discuss these matters and agree to arrangements in good faith. In addition, your employer should consider reasonable accommodations and other supports which might be needed to facilitate your working from home whilst caring for dependents such as, for example: For access to benefits and emergency assistance due to loss of employment, loss of employment hours, running out of sick leave, redundancies the Ministry of Social Development provides support. Do not go out if you are unwell– even in the same home – stay away from others if you are unwell. Some employers are saying COVID-19 is an “act of god” (other terms used include “frustration of contract” and “force majeure”) so they don’t have to follow your employment agreement. Instead of reducing your working hours your employer may make you redundant and offer you alternative work under a new contract of employment. Every employer, self-employed person, and earner pays an ACC levy to cover the cost of injuries under New Zealand’s accident compensation scheme. They can’t keep you working in any capacity. Contact the receiver for specific information about your situation if your employer has been put into receivership, or seek legal advice. If an employee requests extra hours for extra pay, and you know there’s enough extra work for them to do safely and don’t think it will negatively impact their performance, you could increase their hours. If an employee thinks that the change to their hours is disadvantaging them and that the process the employer followed was unfair or there were no genuine reasons for changing the hours of work, an employee should first try to resolve the issue with their … The employer must follow a process to reach agreement with employees. It will largely depend on the terms of your contract as to whether your employer can reduce your hours and pay. The best way to prevent and resolve relationship problems between employers and employees. My employer says we are an essential industry. If you have an individual contract, your employer must give you a copy of any changes they want to make and give you a chance to get advice from someone you trust. Where changes to current working arrangements are proposed by an employer, there are specific good faith requirements that must be followed. All about pay, hours at work, record keeping and what breaks employees are entitled to. Any changes made need to be agreed to by both parties. They can’t tell you to “take it or leave it,” or threaten to fire you unless you agree. Guidance for Trade Unions as an essential service. If you are working your normal hours while at home, the law says you have to be paid your normal wages or salary. Any changes must be recorded in writing and signed by both parties, and the parties must be given reasonable time to consider the proposal. Wage subsidy schemes – Work and Income (external link). We’ll send you a link to a feedback form. Section 4 of the Employment Relations Act 2000. Your contract can’t lower or take away your rights under the law. Authorised by NZCTU, Level 5, 178 Willis Street, Wellington. Before making a decision, which may result in employees losing their job, the employer must give the affected employees sufficient information to be able to understand the proposal and then give them a proper opportunity to comment. Yes, it’s legal—so long as you can justify your need to do so. If your contract states your employer can amend any term of the contract, this may be far too wide–ranging and unspecific, so the employer could not change your contract without your agreement. Not quite, but what you can do—is quit—before you do any work at the offered lower rate of pay. I work in a school kitchen - can my employers reduce my hours by nearly half but still expect the same level of work to be done. In particular, if your employer wants to make changes that would make it hard for you to carry on with your job, they have to give you all the information and give you the chance to have your say before they make their final decision. Then your employer must listen and respond to any questions or issues you have. This includes: Employers and employees, and their representatives must discuss in good faith the implications of the COVID-19 response and recovery on their working arrangements. An employer can say that they are no longer able to employ people and they are going to make the redundant because of COVID-19, but there has to be a fair process for doing this. Alternatively, employers may propose changes to work times or moving to shift work arrangements to manage physical distancing requirements. Any changes to an employment require agreement negotiation and agreement. Editor: As it says above, you should be consulted on any change in the terms and conditions of your contract. To help us improve GOV.UK, we’d like to know more about your visit today. You’ll also need to gain their agreement on the new hours you have. Your employer can’t change your contract without your agreement. In these circumstances, if you are working from home, and looking after your children, your employer must pay your full wage. Generally, if an employment agreement sets the employee's hours of work, then an employer can’t change them without the employee's agreement. Employers can check their eligibility and apply online on the Work and Income website. Good faith is a legal requirement in Section 4 of the Employment Relations Act 2000. The essential health measures to reduce the spread of infection and eliminate corona virus are: If you are an essential worker there will be specific health and safety precaution in your workplace. However this may affect your entitlement to a redundancy payment. Instead, you and your employer could agree to a policy or letter with temporary changes to your work arrangements while you are working at home. Though employers generally can reduce your hours, federal regulations prevent employers from doing so for certain reasons. If your business needs to cost-cut, you can offer your employees benefits to make up for reducing their wage. Any agreed change to the employment agreement should be recorded in writing. And there are a series of downloadable fact sheets on employment-related issues and COVID-19 here. If your employer makes you a reasonable offer of alternative work, and you refuse it, you may lose your entitlement to a redundancy payment. This means employees – regardless of whether they are working from home, or from their workplace – must be paid at least the minimum wage, or more if the rate in their employment agreement is higher. Your employer can’t just change your employement agreement because of COVID19 or ever. COVID-19 Income Relief Payment – Work and Income (external link). This section provides help in some key areas. If the employment agreement says that an employer can change the hours of work, the employer still has to act fairly and reasonably before they do. If your employee tries to wrongfully reduce your benefits, you can take legal action to secure your compensation and hold them accountable. If an employee is working (either from home, or at a workplace), then they must be paid for each and every hour that they work at their agreed wage rate. Thirdly have to show “good faith” in the process – that is be open and honest about what they are doing and listen to what you have to say. Clear workplace policies and procedures support employment agreements and mean everyone knows how things are meant to be done. You are not obliged to accept a variation to your contract however there may be consequences of not accepting a variation. Employers should only use these clauses to vary a contract if they have a good reason, for example the business is struggling financially and needs to cut staff hours. You are entitled to all money that is owed to – pay, annual leave, redundancy pay – if any is covered in your employment areement. Employment at will means that when workers don't have a formal employment contract or are covered by a bargaining agreement they can be terminated, demoted, and have hours reduced or pay lowered at the company's discretion. Make sure your handwashing is meticulous and avoid unnecessarily touching your eyes, nose or mouth as viruses can transfer from your hands and into the body. “Provided the employer follows a fair process and there is a genuine need to cost-cut, they can make employees redundant to … Each situation will be different depending on the nature of the company in receivership. Answer: An employer is permitted to set hours of work and to make certain limited changes to your hours of work. Business has now improved and they have taken on 2 more people and my hours … The COVID-19 Leave Support Scheme is available for employers, including sole traders, to pay their employees who can't work because the employee can't come into work as per Ministry of Health guidelines, which recommends they stay at home, and they are not able to work from home because of the nature of work. Can my employer roster me on at any time and day to make up my guaranteed hours? Generally entitlements will include notice or pay in lieu of notice and possibly redundancy pay. If there are difficulties accessing these or not understood or not being complied with please do contact your union. Having the agreed terms and conditions in writing is a legal requirement, whether the change is temporary or permanent. If the employee has agreed then this would be legal, but only if the … We’ll do what we can to make the process as easy as possible for you. Casual workers are also entitled to the wage subsidy – your employer must seek it for you. There are instances where an employer in Ontario may be able to reduce your salary without penalty. Second you need to be given a reasonable chance to respond. During the COVID-19 response period, there may have been circumstances where consultation on changes could reasonably have been shortened if the employer genuinely needed to make rapid adjustments to cope with their circumstances. When having discussions with your employer about proposed variations, employees should be careful not to make unnecessary concessions because in the circumstances of a substantial subsidy available to the employer, there is often less room for employers to argue that wages/hours be reduced. If you work isn’t essential you should be staying home. She also says your boss can't cut your pay without your agreement. An employer can’t change the job description of an employee without the employee’s agreement. Your employer may want to vary your employment agreements. It is unlawful for an employer to ‘offer’ a variation on a take it or leave it basis. There will be cases in which workers may feel it appropriate to agree to changes (a variation) of their employment agreements to reduce wages or hours. This must be negotiated in good faith. At Belsky, Weinberg & Horowitz, LLC, we understand the challenges of going up against an employer. These changes require additional good faith or other process arrangements, including consulting with employees and their representatives, providing time to respond to proposals and considering their comments. This could be a temporary or permanent reduction. Employees in negotiations with their employer about potential variations should consider and record in any concluded agreement on a variation matters such as: Remember, unless there is an agreed variation to your employment agreement, you have a continuing entitlement in accordance with your full entitlements under your employment agreement. In these situations the employer must follow the usual process for workplace change which includes giving the employee a fair opportunity to consider and respond to the proposed change. This includes normal consultation timeframes and provision of information. If you do agree, it must be part of your signed, written employment agreement before you start work. There are several ways in which employment relationships may be ended, such as resignation, retirement, dismissal or redundancy. Shortened processes must still occur in good faith and provide opportunity for workers to seek advice. If you are on a zero-hours contract for example, there is unlikely to be any rights to be provided with work or pay (even in these circumstances, you should seek advice). AG - 30-Apr-18 @ 5:08 PM. Can my employer change my employment agreeement because of COVID-19? You always have the right to stop work if you believe it is unsafe. If you allow your employer to trim your pay once, you are effectively giving them permission to do so again. Variation clauses will only generally allow reasonable changes and even if there is a variation clause, if you are unhappy you may still be able to “protest” the change and seek legal advice. Where changes to current working arrangements are proposed by an employer, there are specific good faith requirements that must be followed. Good faith means that you and your employer, as well as your union, must be honest with each other and actively communicate. If I am working my normal hours either at home or at an essential business, can my employer reduce my pay? The decision to make an employee redundant must be one that a fair and reasonable employer could make in the circumstances. This means your employer will reduce your working hours, or your work days each week, on reduced pay. The wage subsidy is to help keep your income (not your employer’s). complying with all minimum standards legislation and with the Employment Relations Act 2000. Please note that this content will change over time and may be out of date. For example, you might be asked to work a three-day week, instead of a five-day week. Can employees reduce … Your employer may ask you to do a 90-day trial in a new job. Unfortunately, employers can, in most cases, cut your pay or reduce your hours since most employees are "hired at will." Be paid your normal wages or salary an active FAQ for employment issues related to COVID-19 on our together here... 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