Employer Services Limited has been serving Northland businesses for over 24 years. We remain your one-stop shop for:
- Employment agreements
- Personal grievances
- Investigations
- Disciplinaries
- Redundancies/restructuring
- Exit strategies
- Payroll/Holiday pay queries
- Mediations and Employment Relations Authority
- Disputes
- In-house training
- Anything employment-related
Needing advice or assistance with any of the above? Give us a call on 09 4300113.
- PAYROLL ALERT: MINIMUM WAGE AND KIWISAVER CONTRIBUTIONS INCREASE
From 1 April 2026 the adult minimum wage rises from $23.50 to $23.95 gross per hour.
The starting-out and training minimum wage rate rises from $18.80 to $19.16 (80% of the adult minimum wage).
The default KiwiSaver contribution rate increases from 3% to 3.5% for both employees and employers. Employees aged 16 or 17 who pay into a KiwiSaver fund, will also qualify for employer KiwiSaver contributions from 1 April 2026
- PUBLIC HOLIDAYS COMING UP: EASTER AND ANZAC DAY
Easter:
The Easter weekend falls on 3 to 6 April this year. Good Friday is a public holiday (3 April) and Easter Monday is a public holiday (6 April).
Easter Sunday (5 April) is NOT a public holiday but is governed by the Shop Trading Hours Act 1990. There are restricted trading rules that apply to shops wanting to trade on Easter Sunday. (Other days governed by the Shop Trading Hours Act are Good Friday, Anzac Day (till 1pm) and Christmas Day).
Check with your local council for policies and rules if you want to open your shop for business on Easter Sunday. Your business may be exempt from the restricted shop trading rules. You also need to follow the correct process for notifying employees that they have the right to refuse to work on Easter Sunday.
If employees do work on Easter Sunday, they will be paid at their normal rate of pay. It is not a public holiday, so it does not attract time and a half and an alternative holiday.
If Sunday is a normal day of work for the employee, and they cannot work because the business is closed, how they are paid will depend on what’s been agreed in their employment agreement, or the employer may require them to take a day’s leave on the provision of at least 14 days’ notice.
Anzac Day:
Saturday 25 April is Anzac Day. It is both a public holiday and governed by the Shop Trading Hours Act. It has been Mondayised, which means the public holiday has been transferred to the following Monday 27 April. Monday then becomes the public holiday for those who don’t work at weekends. If they work on Monday, they must be paid time-and-a-half and get an alternative holiday (lieu day). If they don’t work, they get paid relevant daily pay for the day.
Those who do normally work Saturdays will treat Saturday as their public holiday and be paid accordingly. If they work on Monday, they will be paid their normal hourly rate for all hours worked. Monday is not a public holiday for them.
- CONTRACTORS VS EMPLOYEES: THE NEW GATEWAY TEST
The Employment Relations Amendment Act which was enacted on 21 February 2026 provides for a Gateway Test to clarify if a person is a “specified contractor” or an employee.
If the Contractor Agreement contains the following five points, the worker is considered a contractor. If one or more of these factors are not met, then the existing tests will need to be applied.
The written Contractor Agreement must state:
- The worker is an independent contractor and not an employee; and
- the business does not restrict the worker from working for another business (including competitors), except when performing work for the business; and
- the business does not require the worker to be available to work on specific times of day or days, or for a minimum number of hours OR the worker can sub-contract the work, and
- the business does not terminate the contract if the worker does not accept additional work not already agreed to; and
- the worker has had a reasonable opportunity to seek independent advice prior to signing the contract.
The Act is not retrospective, so any existing Contractor Agreements will still be judged by the previous tests of control, integration, intention and fundamental economic reality. Any contractor agreements after 21 February must comply with the latest legislation to make sure the worker cannot later claim they should be considered an employee and not a contractor.
Need help with Contractor Agreements? Contact us for advice and/or assistance with drafting compliant agreements that include the new requirements.
- LIMITS ON PERSONAL GRIEVANCE REMEDIES AWARDED WHEN EMPLOYEE’S MISCONDUCT CONTRIBUTION WAS SUBSTANTIAL
Before this latest change to the Employment Relations Act, the Authority or Court may decide to reduce the remedies awarded in a personal grievance case by a percentage up to 100% depending on the severity of the employee’s misconduct.
Under the new Amendment Act, applicable from 21 February, no remedies will be awarded if the employee’s own conduct amounted to serious misconduct and contributed significantly to the personal grievance claim. The new law also allows for reductions of remedies of up to 100% if the employee’s actions contributed to the personal grievance situation in a significant way.
It is hoped that the law change will make employees think twice before making unreasonable claims against the employer for a large pay-out despite their contributory behaviour to the situation in which they find themselves.
- HIGH-INCOME EARNERS CANNOT CLAIM UNJUSTIFIED DISMISSAL
Currently, ALL employees are entitled to challenge a dismissal if they wish. The new Amendment Act prevents those employees who earn in excess of $200,000 gross from being able to challenge a dismissal by way of a personal grievance.
Affected employees and employers can contract out of this ‘bar’, but if there is no written agreement to that effect, employees have 12 months to renegotiate the terms of their employment agreements. Following that period, the new law will apply.
For employers, the new law provides for greater freedom to restructure or end roles and employment relationships at the highest levels without facing dismissal grievances and the associated costs. This may increase employers’ confidence in hiring senior leaders earlier in their careers and provide greater flexibility to make organisational changes at a senior level.
For employees, affected employees should urgently seek advice if renegotiating agreements before the 12‑month transition window closes.
- TRIAL PERIOD CLAUSE: FURTHER EMPLOYER PROTECTION
All the usual criteria for ensuring a valid Trial Period clause still apply. But if that is all in order, the new amendment to the Employment Relations Act prevents the employee from not only making an unjustified dismissal claim but also an unjustified disadvantage claim relating to the dismissal.
This provides employers greater protection that if they have ensured the Trial Period clause’s validity by following the rules, any dismissals under the Trial period provision will not be challengeable, even as a disadvantage claim.
NEED HELP OR ADVICE?
Give us a call or send us an email:
Murray
027 4300 113
Wendy
021 823 113
Dave
021 720 566
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