VEHICLE MILEAGE RATE AMENDED
IRD monitors fuel prices and publishes a motor vehicle mileage
rate at least once a year. The mileage rate is for expenditure incurred for
the business use of a motor vehicle, it doesn't apply in respect of
motorcycles.
The current mileage rate has been amended to 74 cents per kilometre for
the 2011 income year. This rate applies to both petrol and diesel fuel
vehicles.
As the Commissioner's mileage rate may not reflect their true costs,
actual costs or the logbook method can be used instead. Employers may use
the motor vehicle running cost data published by other reputable sources,
eg, the New Zealand Automobile Association Incorporated, as an alternative
reasonable estimate for reimbursement to employees
IRD TAX REFUND PHISHING SCAMS
There has been a recent prevalence of IRD related phishing scams.
Criminals use online phishing scams to get your personal information,
money, and identity. They send out fraudulent emails to thousands of
customers every day. Many promise a tax refund to customers. Phishing
scams range from the sophisticated, convincing, and professional to those
with poor English and obvious spelling and grammar mistakes.
Unfortunately, some people fall victim to these scams providing
information, money, and even their identity to these online criminals.
Warning Signs of a Phishing Attempt
If you receive an email notifying you of a tax refund or asking for
your tax information, here's some tips to determine if it is genuine:
- Does it include a hyperlink?
- Does it include a specific dollar value of the refund?
- Does it have errors in spelling or grammar?
If you answered "Yes" to any of those questions, delete the
email from your Inbox and Trash folder.
EMPLOYMENT
AGREEMENTS FOR ALL EMPLOYEES- A REQUIREMENT FROM 1 JULY 2011
The Department
of Labour is reminding all employers that from 1 July 2011,
employers must keep copies of employment agreements or terms and
conditions of employment for all employees signed by both
parties.
“Employment agreements have been required by law since the
introduction of the Employment Relations Act 2000. There is evidence
that many workplaces still don’t have employment agreements in place,
and this 1 July deadline will put responsibility on all employers to
ensure agreements are in place, or they may face penalties,” says the
Department of Labour’s Chief Adviser – Employment Relations, Craig
Smith.
“It’s the employer’s responsibility to maintain and keep an up to
date copy of each employee’s employment agreement that reflects the
current terms and conditions of the employment relationship. Employers
must also provide a copy of the agreement if an employee requests it,”
says Mr Smith.
“Recent changes to the Employment Relations Act give labour
inspectors the ability to seek a penalty against an employer who is
in breach of employment agreement requirements,” he says.
“There are penalties of up to $10,000 for individuals and $20,000 for
companies for failure to comply with the legislation,” says Mr Smith.
“If a 90-day trial period is agreed between the employer and the
employee it must be in the written employment agreement before the
employment begins, otherwise the trial period doesn’t comply with the
law,” he says.
There are some provisions that must be included in employment
agreements by law, and there are also a number of minimum conditions that
must be met regardless of whether they are included in agreements.
WHAT
TO PUT IN EMPLOYMENT AGREEMENTS
Under the Employment Relations Act 2000, where there is no collective
agreement the individual employment agreement must be in writing and must
include:
- the names of the employee and the employer
- a description of the work to be performed
- an indication of the place and hours of work
- the wages or salary payable
- a
plain language explanation of services from the Department
of Labour is available to help sort out employment
relationship problems
- a provision confirming the right to at least time-and-a-half on a
public holiday
- for most employees, an employment protection provision that will
apply even if the employer’s business is sold or transferred, or if
the employee’s work is contracted out.
Collective Agreements and their
Relationship to Individual Agreements
The requirements for collective agreements
are set out in the collective
bargaining section of the Department of Labour website.
Employers must not undermine collective bargaining or collective
agreements by automatically passing
on collectively bargained terms and conditions to employees not
covered by that collective bargaining or agreement.
Minimum Rights in Legislation
Some minimum terms and conditions of employment are imposed by
legislation. These terms still apply, even if they have not been written
into the collective or individual employment agreement. Employers and
employees cannot agree to do away with any of these entitlements. They
can, however, agree to better provisions if they wish.
The minimum legislative requirements cover the following:
See www.ers.dol.govt.nz/relationships/minimum
for more detailed information about minimum employment rights.
What other Issues can appear in
Individual Employment Agreements?
There are a number of optional matters that
are often found in employment agreements. These are issues that employers
and employees may wish to include in the agreement or bargain about. The
Department of Labour’s website offers an Employment
Agreement Builder that enables you to develop your own
agreement.
Holidays
For information on holidays and leave please
see the holidays
and leave section of the Department of Labour website.
Annual Holidays
Employees are entitled by law to a minimum
of four weeks' paid annual holidays after being in the job for
a year, or to holiday pay for periods of employment less than one year.
Public Holidays
The 11 public holidays in the Holidays Act apply.
If employees work on public holidays they
must be paid at least time-and-a-half for hours worked on a public
holiday. If it is a day on which they would otherwise have worked they are
also entitled to another day off as an alternative holiday (a day
in lieu).
Sick Leave
Employees are entitled by law to five
days' sick leave a year after being in the job for six months.
If the leave is not taken, it can accumulate up to a maximum of 20 days.
Bereavement Leave
Employees are entitled by law to three
days' bereavement leave after being in the job for six months,
on the death of an immediate family member.
Additionally, the employee is entitled to one days' bereavement leave
where the employer accepts that the employee has suffered a bereavement.
The information provided in this email newsletter is for
informational purposes only. McLean and Co. accept no
responsibility for the opinions and information expressed in the
information provided and it is provided "as is" without
warranty of any kind. The user assumes the entire risk
as to the accuracy and use of this document. Readers are
asked to seek professional advice pertaining to their own
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