Minimum employment rights
This section on minimum employment rights brings
together basic information about the rights and responsibilities of employees
and employers in the workplace.
The minimum rights set out in this section apply by law to all employees. These
rights apply even if they have not been included in employment agreements.
Employers and employees cannot agree to do away with any of these minimum rights,
but they can agree to better ones.
a) Annual Holidays - Holidays Act 2003
At the end of each year of employment with any one employer, an employee becomes
entitled to three weeks' paid annual holiday. An employee will still get holiday
pay for any shorter periods of work. For example, if the employee leaves the
job after six months, holiday pay would be 6% of their gross earnings.
Where an employee is employed for a fixed term of less than 12 months, or they
are a casual employee who works so irregularly that it is not possible to identify
three weeks holidays, the employee can agree to receive their holiday pay on
a “pay as you go” basis. An employment agreement would need to
provide explicitly for such an arrangement, and the amount paid as holiday
pay must be:
- At least 6% of the employee's gross earnings, and
- Must be shown
separately on the employee's pay slip.
Employees are also entitled to 11 paid public holidays if they fall on days
they would normally work. An employment agreement can provide for alternative
days, but not for less than 11 paid public holidays.
b) Sick leave - Holidays Act 2003
After six months with an employer, an employee is entitled to five days'
paid sick leave during the next 12 months of employment. Sick leave can
be taken
for themselves or to care for their spouse, dependent child or parent.
Unused sick leave can accumulate up to 20 days.
Special eligibility tests apply for employees in fixed term or intermittent
employment.
c) Bereavement leave - Holidays Act 2003
After 6 months with an employer, an employee is entitled to paid bereavement
leave of:
-
Three days on the death of a spouse, parent, child, sibling, grandparent, grandchild
or the spouse's parent; and
- One day if the employer accepts that the employee has suffered a bereavement.
Special eligibility tests apply for employees in fixed term or intermittent
employment.
d) Minimum wages - Minimum Wage Act 1983
On 1 April 2004 the adult minimum wage increased to $9.00 per hour, $72 for
an 8-hour day and $360 for a 40-hour week. The minimum youth wage increased
to $7.20 per hour, $57.60 for an 8-hour day and $288 for a 40-hour week.
Even after 40 hours, an employee must still be paid at least the minimum
wage. The minimum wage does not apply to those who hold an exemption or
to those
doing recognised industry training. Here they must be paid the minimum
training wage - the same rate as the minimum youth wage. It does apply
to anyone on
commission or piece rates.
e) Payment of wages - Wages Protection Act 1983
The employer generally needs to get the employee's written consent to make
deductions from their pay, or to pay their wages in a form other than cash,
unless the employment agreement allows otherwise.
f) Equal pay & equal rights - Equal Pay Act 1972 & Human Rights Act
1993
The employer cannot differentiate in pay rates between employees if the only
difference is their sex.
Also, in most cases, the employer cannot discriminate in hiring or firing,
training or promoting because of the employee's race, colour, national or ethnic
origin, sex or sexual orientation, marital or family status, employment status,
age, religious belief or political opinion, or if they have a disability.
g) Parental leave - Parental Leave & Employment Protection Act
1987
An employee and their partner can apply for unpaid leave either on the birth
of a child, or the adoption of a child under 5. They must have worked at least
an average of 10 hours each week, including at least one hour per week or 40
hours per month, for the same employer for 12 months before the expected date
of birth or adoption.
They may also be entitled to up to 12 weeks paid parental leave, which is
taxpayer-funded. The payment can be taken by one parent, or shared between
two eligible partners.
From 1 July 2003, the payment is up to a maximum of $334.75 before tax per
week for the jobs that they have taken parental leave from. If they have
more than one job, they are entitled to up to $334.75 in total, not on
a job-by-job
basis. Like wages, the payment is taxed.
It is illegal for an employer to either dismiss or discriminate against
them on grounds of pregnancy or for taking parental leave under the Act.
h) Other leave rights
Employees may also be entitled to other rights in some situations.
For example:
- Employees who are injured as a result of an accident at work or somewhere
else will be entitled to accident compensation. Your nearest
ACC office can give they information about this (see the blue pages in the
front of the
phone book).
- Employees do full-time voluntary training in the armed forces,
they may be entitled to unpaid leave.
i) Union membership rights
Employees have an absolute right to make their own decision about whether they
want to join a union and, if so, which union. It is illegal for an employer
to put unreasonable pressure on they to join or to not join a union, or to
discriminate against they because they joined or didn't join a union.
It is also illegal for anyone else to put unreasonable pressure on they
to join or to not join a union. Union members may be nominated by their union
to undertake employment relations education on paid leave. Employees can ask
their union about this.
j) Labour Inspectors
Labour Inspectors can enforce the laws that relate to certain statutory minimum
entitlements, such as annual leave, sick leave, public holidays and minimum
wages.
If it appears that an employer has breached any of these laws, an employee
can ask a Labour Inspector to investigate the matter on their behalf, or they
can take an action themselves.