Red Tape Cut at Job Start
Workplace Relations and Safety Minister Brooke van Velden says changes are coming to support freedom of choice and reduce the burden on employers when new employees start in a role.
The Government has agreed to repeal the changes made by the previous government by removing the 30-day rule and reducing related employer obligations.
“Currently, if a collective agreement is in place the employee’s individual agreement must reflect the terms of the collective agreement and that applies for 30 days regardless of whether an employee chooses to join a union or not.
“Not only is the status quo convoluted and confusing, the process adds another administrative cost on top of many others, and those costs are dragging down workplace productivity.
“If a new employee chooses to negotiate the terms and conditions that suit their personal preferences or situation, they should have that choice realised from day one of employment,” says Ms van Velden.
Removing the 30-day rule means employees and employers are free to agree on a wider range of employment terms including those that differ from the collective employment agreement for the first 30 days.
A further benefit of these changes is that 90-day trials can be made available from the start of employment if the employee chooses an individual employment agreement.
“Expanding the availability of 90-day trials was an ACT-National coalition commitment and supports workers that may struggle to gain employment and also give employers greater confidence around hiring,” says Ms van Velden.
Changes are also being made to the way employers communicate and report back on union membership for new employees.
The current processes are the most extensive since the Employment Relations Act was enacted, and these changes will ensure employees still receive the information they need to make a decision about their employment agreement and union membership options.
Employers will no longer have to use the ‘active choice form’, created by the previous government, and unions will no longer have the ability to provide information about the role and functions of the unions, that the employer must pass on to the employee.
Employers will still need to communicate that the employee may join a union that is a party to the collective employment agreement, how to contact the union and that if the employee joins the union, the collective employment agreement will bind the employee.
These changes will be included in the Employment Relations Amendment Bill that will be introduced this year and is expected to be passed by the end of 2025.
“I am striking the right balance between ensuring information about unions is available to new employees, protecting the personal choice of workers and reducing the compliance burden for employers,” says Ms van Velden.
https://www.beehive.govt.nz/release/cutting-red-tape-start-employment