Employment News

Employment News Update - November 2011

Are your annual holiday pay calculations correct?

Employers need to ensure they fully understand the calculation of annual leave payments, particularly where bonus payments are concerned. This was highlighted in a recent Employment Relations Authority case, Board v Adecco NZ Ltd. In this case, alongside a dispute regarding unjustified dismissal for her redundancy, Ms Board claimed she was owed holiday pay due to her 2003 and 2004 bonuses being excluded from the assessment of average weekly earnings when calculating her holiday pay. The Authority held that both years bonuses (as part of an annual bonus plan) should have been taken into account in calculating Ms Board's holiday pay.

It is well worth checking the wording of your new and/or existing bonus schemes and whether they are to form part of that annual leave or holiday pay calculation. If you are unsure, please call us and we can take some pressure off the end of year accounts. Read full article here.

Health & Safety Legislation

Employers will welcome a recent case in the High Court which is likely to have a significant impact on OSH accident investigations.

In Bull v Utumapu, a fatal accident occurred on a farm near Taihape. An inspector from the Department of Labour began investigating the accident. As part of the investigation, the inspector gave notice that she wanted to interview Mr Bull and Mr Speedy who were directors of the company (the deceased's employer). Mr Speedy was also the farm manager.

The High Court confirmed that defendants in an OSH investigation have a "right to silence" as well as the "right against self-incrimination". This is because the interviews were being sought as a means of investigating possible offences.

While health and safety legislation is onerous, the powers of OSH inspectors have clearly been tamed. Employers are advised to take the time to seek legal representation and advice following an accident in the workplace. Read full article here.

If you have any questions or issues arising from these articles please contact our Employment team.

Links referenced

Read full article here.: http://www.duncancotterill.com/index.cfm/3,159,714/employment-update-nov-11.pdf
Read full article here: http://www.duncancotterill.com/index.cfm/3,159,714/employment-update-nov-11.pdf

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