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Minimum Wage gets 50c Hike
Zero Hour Contracts
Parental Leave from 1/4/2016
Tax on Schedular Payments in the Horticultural and Viticultural Contracts
Saturday 2nd April- Monday 11th April
Saturday 16th April- Sunday 24th April
Thursday 5th May- Tuesday 10th May
The adult minimum wage is going up from $14.75 an hour to $15.25, with the starting-out and training rates rising too. Here’s what you’ll need to know for your business.
When: 1 April 2016
What: The new minimum wage rates are:
Read this Minimum pay page for a summary of who can earn the different rates.
Why: Government must by law review these pay rates every year.
What you’ll need to do: You and your staff can agree to any wage above the minimum rate that’s most appropriate to them. You’ll also need to update your employment agreements to reflect any wage changes.
If you pay any of your staff the minimum wage, you may need to amend their employment agreements to reflect the new rate. Use the Employee Cost Calculator to get an idea of how much the increase will cost your business. You can also use the calculator to estimate costs of hiring a new employee.
If you pay any staff minimum wages, recalculate your budget for the rest of the year to account for the increased wages.
Fair pay: In addition to paying the minimum wage or higher, you’ll need to make sure your pay policies are as fair as possible. Pay your staff for actual hours worked — that’s at least the minimum hourly wage for any extra time worked over an eight-hour day (excluding meal breaks).
ZERO HOUR CONTRACTS
Employers can no longer offer “zero-hour” contracts. You must agree hours of work with each employee and put the details into their employment agreement. You also can’t require employees to be available for work above those agreed hours without a genuine reason and reasonable compensation.
Find out more in article on hours of work.
Cancelled shifts — Employers can’t cancel a shift without giving workers reasonable notice or reasonable compensation.
Find out what this means for your business in article on shift cancellation.
PARENTAL LEAVE FROM 1/4/2016
New laws are increasing parental leave entitlements. Find out what impact it will have on your business.
When: 1 April 2016.
What: Parental leave payments are increasing from 16 to 18 weeks.
The new law extends parental leave payments to more workers, including:
Previously only biological or formal adoptive parents could claim parental leave payments. The law change extends this to others who take on the permanent care of children aged under six, eg home-for-life and whāngai arrangements.
Read more about the types of ‘primary carer’ now eligible on the Ministry of Business, Innovation and Employment website.
TAX ON SCHEDULAR PAYMENTS IN THE HORTICULTURAL AND VITICULTURAL INDUSTRIES
Since April 2010, business operators in the horticultural and viticultural industries hiring a contractor for the supply of labour have been required to deduct tax from the contractor's payments at 15c in the dollar. This is for any type of contractor hired, including individuals, partnerships, trusts or companies.
There are two exceptions to this rule. One, if the contractor holds a valid and current Certificate of Exemption, no tax is deducted from the contractor's payments. Two, if the contractor holds a current Special Tax Code Certificate and presents this, tax is deducted at the rate shown on the Certificate.
IRD have indicated that in their review activities they have noted a number of business operators are not complying with these regulations and deducting tax where it should be. They have also indicated that where a grower (or contractor hiring a subcontractor) knowingly fails to deduct at the prescribed rate, they will consider amending relevant PAYE Returns, making the grower liable for any amounts of tax that have been withheld. This is in accordance with Sections 89c and 168(1) of the Tax Administration Act 1994.
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