SHR End of Year Updates

November seems to be a month for getting things done before Christmas. So here are some important changes to legislation and guidance for Employers to be aware of in preparation for 2023. In addition, we have a quick rundown on what you need to be thinking about when it comes to Christmas Shut Downs.

Updates to Australian Legislation

Parental Leave Pay

Alongside the release of the Federal Budget, the Australian Government is increasing the length of Paid Parental Leave from 18 to 26 weeks by 2026, (getting us up to par with our NZ neighbours).

The changes to commence on 1 July 2023 are:

• Parental Leave Pay (PLP) and Dad and Partner Pay (currently 2 weeks) will be combined into a single 20-week payment,

• Gender-neutral claiming will commence, which allows either parent to claim the payment,

• Parents will be able to take weeks of PLP at the same time,

• A family income limit of $350,000 will be introduced in addition to the existing individual limit of $156,647,

• Parents will be able to take PLP in blocks as small as one day at a time with periods of work in between,

• PLP must be used within 2 years of the date of birth/adoption, and

• Each parent will have a ‘use it or lose it’ portion to support and incentivise both parents to access it.

From 1 July 2024 PLP will increase by 2 weeks each year, until 1 July 2026 when it reaches 26 weeks.

What do you need to do? We will be in contact with our clients closer to the introduction of the changes to recommend a review of your Contracts, policies, and processes where they refer to parental leave.

Paid Domestic Violence Leave

On 27th October the Fair Work Amendment (Paid Family and Domestic Violence Leave) Bill 2022 was passed in Australian Parliament. This will see an amendment to the Fair Work Act by inserting a non-accumulating entitlement to 10 days’ paid family and domestic violence leave each year into the National Employment Standards (NES). It will apply to all employees (including casuals). The new paid entitlement will take effect from 1 February 2023, (or 1 August 2023 for small business employers with less than 15 staff).

Once again, this change will match the current entitlement in NZ, where employees are already entitled to take up to10 days of paid DV leave each year.

What do you need to do? Review your Contracts, policies and internal processes before February 2023, to ensure they are up to date with the latest paid entitlements. Reach out to your consultant if you need support.

Respect at Work Bill

On 27 September 2022 the Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Bill 2022 was introduced, which seeks to implement a further 7 of the 55 recommendations that were made in the Australian Human Rights Commission’s Respect@Work Report in 2021.

Amongst other things, the proposed amendments include a positive duty on employers to take reasonable and proportionate measures to eliminate workplace sexual harassment, victimisation, and sex discrimination as a far as possible (this positive duty will extend to third parties, such as customers). The amendments also enable the Australian Human Rights Commission (AHRC) to assess and enforce compliance with this positive duty.

What do you need to do? Employers need to shift their focus away from a “reactive” response to issues, to a medium and long-term plan on how risks will be proactively managed. Although updating policies, procedures, and running training is a good first step, it is unlikely to be enough.

Positive steps to create and maintain a respectful culture include:

• Leadership modelling appropriate workplace behaviours,

• Setting the tone and creating trust that this type of conduct will not be tolerated,

• Obtaining data from employee surveys and audits to identify and address red flags,

• Analysing data for systemic issues within specific teams, and

• Implementing EAP’s; monitoring and reporting on statistics.

Upcoming Changes to New Zealand Legislation

Fair Pay Agreements Bill

The Fair Pay Agreement Bill is due to take effect on 1 December 2022 alongside a new bargaining system. The Bill has been billed as a welcome cloak of protection for those in the essential services industries such as cleaners, bus drivers, rubbish and recycling collection, and supermarket employees all of whom keep society going day to day. The Fair Pay Agreements Bill aims to create better pay and conditions for our most vital and undervalued sectors.

With only one in five working New Zealanders represented by a union, the Bill aims to address industry issues via collective bargaining, incentivising professional training, monitoring compliance standards and improved employee protection. Those representing lower-paid industries see the Bill as a step in the right direction as we continue to fight labour and skills shortages (more on that below) as well as the rising cost of living – it provides a sense of control and security where union representation would otherwise be absent and will help to keep these vital roles filled in our communities.

However, there are some private business owners who are skeptical and feel that the Bill may remove flexibility for employees, potentially forcing some into collective bargaining for minimum terms and conditions with no option to be excluded from the outcome. And whilst some employers are concerned about being pulled into a union-like agenda, overall, the Bill is being seen as a way to balance competition amongst business owners rather than winning work through reducing expenses on resources and racing to the bottom.

Sources: Employsure.co.nz I Employment.govt.nz I

Annual Shutdowns – Are They More Beneficial Right Now than You Realise?

As we approach the silly season, have you considered how your business will operate during this time? Many businesses get busier, and may need their employees to work more, while others may shutdown or reduce staff numbers.

If your business is one of those that slows down, now is a great time to take to consider your team’s annual leave balances, and when they last took leave. New research from ELMO suggests that 75% of Australian employees are avoiding taking leave due to factors such as rising costs and workloads. As a result, ELMO’s findings show that 23% of employees have accrued more than the annual leave entitlement (20 days) and 42% of employees experienced burnout in the last quarter.

We are all too aware of internal resourcing issues in many of our clients' businesses, leading to growing workloads and a potential reluctance to allow staff to take leave. So, if you can, it may be worth considering closing down (or reducing capacity) to encourage your team to take a well-earned break this festive season.

Here's where we suggest you start:

1. Make a Plan – Depending on your industry, determine what your ideal requirements are. Can you close for a period? Or perhaps have a skeleton crew? Figure out what is going to work best for your business, so you have an ideal scenario to work towards. If you are one of those businesses who get busier at this time of year, look ahead to your quieter period, and consider encouraging some of your team to apply for leave now.

2. Check the Legislation – Different rules will apply to your business and team when it comes to shutdowns and directions to take leave depending on where you’re operating from (Australia or NZ), what is written in your Contracts or agreements, and (if you’re in Australia) your Award coverage. Make sure you know what is and isn’t allowed before you start communicating with your team and reach out to your SHR Consultant if you need support.

3. Anticipate Questions – Get on the front foot and work out what the likely scenarios and questions will be from your team. That way when you send out the communications, you’re answering all their questions before they get a chance to ask them! Let them know if and when the business will be shutting down, what type of leave will need to be taken, what their options are if they don’t have enough paid leave entitlements, how Public Holidays will be accounted for, and who they can talk to about their individual circumstances.

4. Communicate Early – If you haven’t done this yet then you may have missed the ‘early’ part, but it’s never too late to    communicate well with your team.