Employer Bulletin | 02 December

Workplace Relations and Safety Minister Brooke van Velden says an upcoming change to the Employment Relations Act will enable employers to ensure they have the right fit for their high impact leadership and specialist roles.

Cabinet has agreed to introduce an income threshold of $180,000 per annum for unjustified dismissal personal grievances, meaning employees earning above that will be unable to raise an unjustified dismissal claim. This policy delivers on the ACT-National coalition to set an income threshold above which personal grievances cannot be pursued.

“Employers and employees are free to opt back into unjustified dismissal protection if they choose to or negotiate their own dismissal procedures that work for them,” says Ms van Velden.

“Highly paid workers such as senior executives or technical specialists can have a significant impact on organisational performance and culture. Having a poor performing manager or executive can increase the risk of poor culture and low morale.

“Workers who are wanting to move up the career ladder and be considered for more challenging positions will benefit from this policy.

“The income threshold of $180,000 will cover approximately 3.4 percent of the workforce and aligns with the current top income tax rates. The income threshold will be adjusted annually to match increases in average weekly earnings.

“The change will be progressed through the Employment Relations Amendment Bill, which I aim to introduce in 2025,” says Ms van Velden

In today’s Bulletin:

• Employer’s leave buyout scheme forms part of employees’ gross earnings
• Authority issues interim injunction on breaching restraint of trade
• Authority decides workers are independent contractors rather than employees
• Director of liquidated company personally liable for employees’ wage arrears
• Migrant employee resigns due to being refused pay
• Eight news updates of interest for employers including: Overseas merchandise trade: October 2024; Retail spending flat in the September 2024 quarter; SH1B Telephone Road to reopen next year; Levelling the playing field for Community Housing Providers; Supporting rural New Zealand: one year of action; More relief for Kiwi families; Exporters benefit from new trade system; and More flexible dismissal process for high-income employees
• Twelve bills open for submission

If you have any questions, about this case or other employment relation matters, call the Advice Line team on 0800 800 362.