Changing Employment Agreements in New Zealand: What Employers and Employees Need to Know
Employment agreements are an important aspect of any job, providing both employers and employees with clear expectations and guidelines. However, there may come a time when changes need to be made to these agreements. In New Zealand, there are certain rules and regulations that must be followed when changing employment agreements. Whether you are an employer or an employee, here is what you need to know about changing employment agreements in New Zealand.
Employer-initiated Changes
Employers may need to make changes to an employment agreement for a variety of reasons, such as changes to the job itself, changes to the business, or changes to the law. Before making any changes, employers should first check the terms of the existing agreement to determine if there is any flexibility to make amendments. If not, the employer will need to seek the employee’s consent to make any changes.
If the employee agrees to the proposed changes, the employer must provide the employee with written notice of the changes at least 14 days before they are due to take effect. The employee then has the right to seek advice and/or negotiate the changes further. If the changes are not agreed upon, the employer may need to consider alternative options, such as redundancy or termination of employment.
It is important to note that employers are not allowed to make changes to an employment agreement that are less favorable to the employee than the existing agreement, unless the employee agrees to the changes. Employers must also comply with any relevant employment legislation, such as the Employment Relations Act 2000, when making changes to an employment agreement.
Employee-initiated Changes
Employees may also seek to make changes to their employment agreement, such as changes to working hours, job duties, or salary. In this case, the employee should discuss their proposed changes with their employer and work together to come to an agreement.
If the employer agrees to the proposed changes, they must provide the employee with written notice of the changes at least 14 days before they are due to take effect. If the employer does not agree to the proposed changes, the employee may choose to withdraw their proposal or consider taking further action, such as seeking mediation or taking a personal grievance claim to the Employment Relations Authority.
Tips and Considerations
When changing employment agreements, it is important for both employers and employees to carefully consider the proposed changes and how they will affect the employment relationship. Here are some tips and considerations to keep in mind:
– Seek legal advice: Employment law in New Zealand can be complex, so it may be wise to seek legal advice before making any changes to an employment agreement.
– Keep communication open: Employers and employees should communicate openly and honestly about proposed changes, and work together to find a mutually beneficial solution.
– Document changes: Any changes to an employment agreement should be documented in writing, including the reason for the changes, the proposed changes, and when they will take effect.
– Consider the impact: Employers and employees should consider how any proposed changes will impact the broader employment relationship, including the employee’s morale, job satisfaction, and productivity.
– Follow all legal requirements: Employers must comply with all relevant employment legislation, such as providing notice of changes and ensuring changes are not less favorable to the employee than the existing agreement.
In conclusion, changing employment agreements in New Zealand requires careful consideration and compliance with legal requirements. Employers and employees should work together to find mutually beneficial solutions, and seek legal advice if necessary. By following these guidelines, changes to employment agreements can be made in a fair and equitable manner.