Christmas and Annual Leave
Hi All,
As we approach the holiday season it is the time of year for annual closedowns, Christmas parties but for some companies it can be the busiest time of year. We get a lot of questions around Christmas party management, absenteeism, your ability to request employees to take annual leave and employment agreements therefore, we have prepared some guidance for you,
Christmas Parties
Christmas parties are great way to get your people together, celebrate success and create engagement with people in the company. As an employer, its crucial to be mindful of certain key aspects to ensure the event is a success:
Ensuring Safety
If an employee is injured while traveling to, during, or leaving a work-related function, your business may be held liable by ACC. Essentially, the responsibility lies with the employer, as the employee would not have been in that unsafe situation if not for the business function. This encompasses all work-related events, such as meeting and conferences.
Alcohol
If you plan to provide alcohol, its crucial to have a clear policy outlining specific expectations.
Ensure practicalities by:
Providing enough food
Setting clear limits for bar staff or internal people serving alcohol
Providing Uber, Taxi or Shuttle Busses for your people to get home
Policies to remind your people prior:
Code of Conduct
Bullying and Harassment
Drug and Alcohol
Absenteeism
The holiday season is among the busiest times for many companies, demanding heightened productivity from their employees.
However, it is also a period when numerous employees take days off for various reasons, such as seasonal illnesses, family commitments, or burnout from a busy year. This surge in absenteeism can result in a decline in overall productivity, posing challenges for effective management. It is crucial to maintain comprehensive records of your employees leave and absences. If you observe patterns in absenteeism or leave-taking, it is essential to address these issues early on. Establishing clear policies and processes is paramount. Ensure that your employment agreements incorporate appropriate leave clauses to mitigate any associated risks.
Can I make my employees take annual leave?
As we advised in a previous newsletter, it is a good time to review leave balances to ensure you are not carrying too much liability for annual leave. Annual leave allows employees to rest and relax, and it’s important for an employer and employee to agree on when employee’s take their annual leave.
However, when an agreement cannot be reached, or if an employee has a significant leave balance, you can ‘require’ an employee to take annual leave, provided they are given no less than 14 days’ notice. If your business has a mandatory closedown period, you can also require employees to take annual leave for this period. Employees must be provided with 14 days’ notice of the closedown. Special provisions apply if employees do not have sufficient annual leave to cover the closedown period or are not yet entitled to annual leave. If you would like further advice or if you have any questions about annual leave and/or closedown periods, talk to an expert – contact the team at Knowhow.
Getting Employment Agreements Correct
It’s never been more important to ensure that you have the correct employment provisions in place with the increasing award payment rulings.
A company has been ordered to pay $33,000 after an unjustified dismissal case was upheld by the ERA.
There were a few areas where the employer got it wrong:
The employee was on a fixed-term agreement for a period of 4 months; however, employment wasn’t terminated after the 4-month period. The employee remained working for a further period of 17 months.
The employer terminated employment after the employee had a car accident. They did this by way of a termination notice stating that the fixed term was over, and the employee’s services were no longer required.
Employment Relations Authority
The ERA had to decide what employment the employee was under as the employment agreement was invalid. They decided it was a permanent employment relationship because the employee continued to work after the initial fixed-term agreement term had ended. The next question was whether the employer acted as a fair and reasonable employer would. They found that there was no process followed, no consultation or right to respond to the termination. The employer was ordered to pay $13,000 in unpaid wages and lost remuneration; $15,000 as compensation for hurt and humiliation; and $5,000 as a penalty.
Seeking Advice
This showcases the importance for understanding or having support around employment agreements and contract management. In this case, had the employer sought advice, even after the fixed-term period had expired, this could have prevented the employee from raising the claim to the employer and the subsequent penalty of $33,000. If you are unsure what to do if an employment relationship may change or has changed, get in touch and we can help.
What type of Employment Agreement should I use over the Holiday Period?
During the holiday period, some companies wind down, while others, especially those in hospitality or retail, experience increased activity. If you are considering hiring additional staff for the holiday season, casual employees or fixed-term employees are viable options.
Casual
Casual employment is not defined in employment legislation but is viewed as being employed with no ongoing expectation of employment, there is no guarantee of hours of work, and no regular pattern of work. This provides flexibility, but limited reliability.
Fixed Term
Fixed Term employment is for a fixed period, and for a specific purpose.
When employing casual employees or employees for a fixed term, over a busy period, it is important to have a signed employment agreement that accurately sets out all legal entitlements.
Contact us here at Knowhow to discuss your requirements and advice on the most appropriate employment agreement.
Rebecca Dobby
Partner – Employer Advisory
09 377 9891 | 027 669 8875 | rebecca@knowhow.co.nz