People Watch Edition 3 - November 2018 - EY
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
People Watch
Edition 3
November 2018
People Watch is a quarterly publication. We cover the
latest people-related updates, cross-border challenges
and remuneration and tax trends.
In this issue:
• Employment Legislation – Change is the only constant
• Building high performing teams
• Upcoming changes to tax compliance – understanding your obligations and risks as
an employer
• Maday v Avondale College Board of Trustees (Employment Relations Authority)
• The difficult link between performance management and mental health
• Agile Manifesto – Frequently asked questions
• High Court full bench provides guidance on health and safety sentencing
• Resourcing talent from an international labour pool
People Watch is a publication produced by EY People Advisory Services. For People
Advisory Services, building a better working world means helping to solve complex
industry issues and capitalising on opportunities to help clients grow, increase and
protect their business.
Employment Legislation —
Change is the only constant
shorter variation of their working arrangements. Examples of Equal pay. In January 2018, the Government reconvened
One of the major tension points between business • Inserting a definition of wages as including the amounts payable variation requests include: a change in the hours, days or place the Equal Pay Working Group, which provided further
and the coalition Government has been uncertainty for time, piece work, or by way of commission. of work, an alteration of their duties and the extent of the contact recommendations in February 2018. New legislation was
over labour relations policy. Nearly one year into Minimum wage. The adult minimum wage rose to $16.50 on details they must provide to the employer. introduced in September 2018, which uses the existing collective
the new Government, where are we heading on the 1 April 2018 and is set to rise to $20 by 2020. This combined bargaining framework in an effort to make it easier to raise
Employers may require “proof” of the domestic violence prior to
with the compression effect on wage earners slightly above the and resolve pay equity and equality claims from employees. In
employment front? granting leave or changing working arrangements. Proof is not
minimum, the impact of the living wage movement, equal pay addition, a number of large Government settlements have been
defined in the Bill but may include medical or Police certificates,
Most aspects of our minimum employment standards from min- claims in a variety of industries and skills shortages means that reached with workers in the care, mental health, education
or a self-declaration.
imum wage to fair work agreements have changed, or have upwards wage pressure is set to remain for the near future. support and social work sectors, receiving pay increases of up to
change flagged. Some of the major changes include: The Bill is representative of a wider move towards allowing 30% for over 60,000 workers.
Minimum wages has also been an area of enforcement focus by employees to bring their whole selves to work, seeing
Employment relations. On 7 September 2018, the Select Com- MBIE. In a recent example, an employee of a large multinational Wider trends
diversity as being wider than gender or racial differences,
mittee reported back on the Employment Relations Amendment company receiving a salary of $37,500 worked over and above The key theme that draws these changes together is the challenge
and a recognition that for some employees, work can be the
Bill, the landmark employment legislation introduced by the La- her contracted hours of 90 per fortnight in some pay periods. of creating the right balance between protecting the rights of our
only place they feel safe.
bour-led government. Disappointingly for many businesses, the re- Because her salary was so close to the minimum wage it meant low wage vulnerable workers and narrowing the wealth gap, while
port does not alter the thrust of the new legislation, which pro- that she was below the minimum wage for those pay periods. The Holidays (Bereavement Leave for Miscarriage) allowing both employers and workers to embrace the efficiencies
poses changes such as limiting 90 day company was ordered to pay the employee $3,500 and was stood Amendment Bill. A private member’s bill from Labour MP Ginny and flexibility that technology will bring to our workplaces in the
trial periods to small employers, restoring reinstatement as the down from hiring migrant workers for a period of 12 months. This Anderson (the Holidays (Bereavement Leave for Miscarriage) coming years. Linked to the desire to embrace flexibility is an
primary remedy for unjustified dismissal, reinstating set rest case serves as a strong reminder that even salaried employees Amendment Bill) was drawn from the ballot in August. If passed, acknowledgment of the benefits to be gained across all areas of
and meal breaks, and restoring a large number of collective are entitled to receive the minimum wage for each hour that they this will provide three days’ paid bereavement leave to a mother business from health and safety to performance and retention,
bargaining rights. work. We would encourage employers with salaried workers at and her partner or spouse in the event of a miscarriage. Given the of involving workers in decision making processes and embracing
the lower end of the scale to keep accurate time records so that, Bill states that bereavement leave will be given for the unplanned diversity in all its forms.
Instead, the Select Committee recommends a number of relatively
where applicable, top up payments can be made or time off in lieu end of a pregnancy by way of the death of the foetus, the Bill
minor changes to the Bill, including: Although not all business sectors agree with the changes
provided to ensure that minimum wage obligations are met and presumably also covers stillbirths, which is defined in the Births,
• Altering the grounds under which employers do not need to give Deaths and Marriages Registration Act 1995 as occurring from proposed, the Government has made significant progress in
compliance can be demonstrated.
union information to employees and ensuring the employer’s the 20th week of pregnancy. It remains to be seen how employers implementing its labour relations agenda over the last 12 months.
costs in providing information about the union to prospective Parental leave. Government paid parental leave was extended to will be expected to manage, the crossover between this leave and It will remain to be seen whether it delivers the long-term
employees are borne by the union 22 weeks from 1 July 2018, with a further increase to 26 weeks parental leave or sick leave. impact sought.
flagged to come into force by 2020. In addition to this, Best Start
• Clarifying the ability for employers and employees to be able to Holidays Act taskforce. The Government appointed taskforce
tax credits were introduced from 1 July 2018, with the first year
negotiate terms and conditions that are more favourable than to review the Holidays Act 2003 released an issues paper for
of credits not being income assessed.
those included in a collective agreement, even during the 30 public consultation in late August 2018. Some of the key issues
day period when non-union members are given the same terms Domestic Violence. Green MP Jan Logie’s private members’ identified include clarification around what should be included
and conditions that they would receive if they were part of a bill, Domestic Violence – Victims’ Protection Bill, passed its in ordinary weekly pay and gross earnings, tricky issues involved
collective agreement third reading in July, and will come into force on 1 April 2019. in the calculation of ordinary weekly pay and average weekly
Employers will be required to provide up to 10 days’ paid leave per Christie Hall, New Zealand Law Leader,
• Compensation for those employees unable to take rest and meal pay, and clarification of how to define irregular employment, Employment and Health & Safety Law Leader
breaks who are paid variable rates is to be calculated on the year to employees if they, or a child in their residence, is affected an otherwise working day and an ordinary working week. William Fussey, Senior Solicitor,
basis of the amount they would have earned during a rest or by domestic violence, regardless of when it occurred. Employees The Taskforce is expected to report back with its findings and Employment and Health & Safety Team, EY Law
meal break affected by domestic violence may also request a 2-month or recommendations by mid-2019.
2 | People Watch Edition 3 November 2018 People Watch Edition 3 November 2018 | 3
Building high performing teams Three areas that can help overcome this conundrum:
Focus attention on stability: taking the time to select team
Is your organisation members who will stick by each other through the highs and
using High Performance lows. It takes months to create a high performing team. If
members often come and go, or are not present and the only
in a promotional context, real improvements come from strengthening the inter team
relationships, forming a high performing team becomes almost
rather than a performance- impossible. Selecting the right people at the start is fundamental
based one? to high performance success.
Value Cohesion: Cohesion doesn’t happen overnight and there
is always a danger that when attempts are made to create
cohesion it can have the opposite effect. This notion amplifies the
Definitions of High Performance vary greatly across
importance of stability - teams with high trust that possess strong
organisations, cultures, and industries. There is bonds between individuals are generally built up over a long period
of course no such body as a High Performance of time through experiences. Often these experiences enable
Association who monitors and accredits according individuals to assist others and also be assisted. Good cohesion
to a set of high performance criteria. There are no exists when there is a free stream of information and trust
inspectors who audit organisations and rubber stamp amongst team members, thus increasing performance.
an organisation as ‘high performing,’ and there is Focus on growth of team in individual performance
certainly no agreed metrics that give one organisation management: With the increasing complexity of work where
no one person has all the knowledge needed to solve problems,
the moral ‘high performing’ ground over another.
the rise of multidisciplinary work groups is on the rise. Individual
So why has it become common for organisations to use this performance management that has a focus on how an individual
terminology so interchangeably in a business context? It is now contributes to the growth of a team is becoming more common.
popular to lay claim to having business teams who are being One on one meetings can be used to discuss individual’s habits
or striving toward or delivering High Performance outcomes and behaviours and how they affect the team. It is also a chance
for their customers. Yet often this may not be the case. A team to provide two way constructive feedback on team dynamics and
can be defined as “an interdependent group of individuals what can be done better. The key opportunity is for an individual
who share responsibility and a common goal.” So what are the to better understand their value to the team and how that
fundamentals that shift this group of individuals to be classed a contributes to high performance team outcomes.
‘high performing team?’ “Like any good performance the hard
work is in the preparation”, therefore designing the team for Forming a high performing team takes time. There is certainly
high performing success needs to be deliberate. It is not a one no arrival point. Sustaining a high performing team needs
off proposition either, it is any everyday commitment to enhance to be a daily proposition for organisations in order to have
performance. This is where a number of teams fall short – the substance behind the rhetoric. A focus on stability, cohesion and
endeavour is right, the commitment at the start is right, but the performance management will help provide a foundation to build a
daily commitment wanes overtime and individuals settle for being team into a high performing one over time.
just a “team,” because sustained high performance involves a lot
of uncomfortableness. This is where the gap between what teams
aspire to do and what teams do in reality exist. It is also why it is
easy to promote the aspiration, but fall short on the realities of
what it takes to be a high performing team.
Meredith Wilmot, Director, People Advisory Services
Josh Blackie, Manager, People Advisory Services
4 | People Watch Edition 3 November 2018 People Watch Edition 3 November 2018 | 5
Upcoming changes to tax
compliance — understanding your
obligations and risks as an employer
The new regime – Inland Revenue is automating Enhancements to year-end tax filing for employees Where employee earnings have been reported incorrectly, Employers who have not reviewed their payroll systems and
Earlier this year the Government enacted legislation introducing Significant changes are proposed to simplify the year-end tax filing this is likely to result in employees year-end tax positions processes recently, or have any concerns with their current
payday reporting which requires employers to comply with a obligations for individuals. In place of personal tax summaries being incorrectly calculated. This represents a significant risk payroll reports, should proceed with performing an in-depth
significantly different payroll reporting system from 1 April 2019. and IR3 returns, Inland Revenue will automatically generate to employers in both employee confidence and unexpected review before 1 April 2019. With only six months until these
“pre-populated accounts” for individuals. These pre-populated compliance costs, and places a heavy reliance on employers to get changes come into force, there is not much time to ensure the
The Government has also introduced the Taxation (Annual Rates it right the first time. payroll reporting is in order.
accounts will be based on income information reported to Inland
for 2018-19, Modernising Tax Administration, and Remedial
Revenue including employee earnings under the new payday
Matters) Bill. The Bill contains proposals that will take effect
reporting regime.
from 1 April 2019 and will revolutionise the way Inland Revenue
assesses an individual’s year-end tax position. Under the proposed changes Inland Revenue will alert Individuals
of their year-end reported income and where necessary will
With both these changes, the Government is implementing its
request further information to enable Inland Revenue to calculate
previous announced intentions to modernise the New Zealand tax
the year-end tax position. For individuals with employment Register: EY Payday reporting workshop series
system, following the recent transformation by Inland Revenue
income only, refunds or tax to pay amounts will be calculated
of its processing systems. Employers need to be fully aware of Payday reporting workshop series
automatically and an actioned accordingly.
the interplay between these two legislative changes and the risks A half-day deep dive workshop for payroll managers and operators,
they represent. What does this mean for employers? focusing on the steps to take to practically prepare your business
Reviewing the payroll reporting landscape from 1 April 2019 As employers will be the point of origin for employment Is your business for the 1 April Payday changes.
As most employers will already know, the new payday reporting
information reported to Inland Revenue, there will be a substantial
reliance on employer payroll processes and systems to ensure
data ready? Christchurch
rules become mandatory from 1 April 2019. Under payday Tuesday, 11 December 2018
employees year-end tax positions are accurately calculated.
reporting, most employers will be required to electronically submit
This is likely to give rise to greater scrutiny by Inland Revenue of Wellington
their payroll information to Inland Revenue within two working
employers’ payroll reporting systems and processes. Employers Wednesday, 12 December 2018
days. Currently as a result of these changes, employers will need
will need to satisfy Inland Revenue their payroll systems and
to ensure the following: Auckland
processes are configured correctly and are capturing all the
• W
► age codes are configured correctly; necessary information required by Inland Revenue. Thursday, 13 December 2018
• P
► ayroll systems are capable of processing and reporting From 1 April 2019, Inland Revenue will have the capability to
information in the specified timeframe; and digitally analyse payroll data and identify anomalies in reported
• There are adequate processes ensuring that payroll reporting employee earnings and related information. Compounded with
requirements are adhered to. the shortened reporting time frame, employers will no longer ©2018 Ernst & Young New Zealand. All Rights Reserved. ED None.
These changes highlight the need for employers to be able to be able to rely on previous methods for correcting payroll
accurately report payroll information in a short period of time. reporting errors.
Payday reporting will also present additional challenges for
employers who make out of cycle payments and who are required Hamish Robertson, Manager, People Advisory Services
to report employee share scheme benefit income. Emma Pennington-Foley, Senior Manager, People Advisory Services
Graeme Knapp, Executive Director, People Advisory Services
6 | People Watch Edition 3 November 2018 People Watch Edition 3 November 2018 | 7
Maday v Avondale College How do you put a monetary
Awards have been slowly trending upwards over the past five
years, with average awards increasing from $7,000 up towards
$10,000. The Chief Judge of the Employment Court recently de-
Board of Trustees valuation on the emotional
cost of an unjustified
scribed awards of $10,000 - $50,000 as being moderate, with
high awards sitting above $50,000. A recent case in the Employ-
(Employment Relations Authority)
ment Relations Authority (ERA) demonstrates that this trend is
also holding true at the higher end of the scale.
dismissal? This question has Catriona Maday was a high school teacher who was the subject of
been in the spotlight recently student complaints. The Board of Trustees subsequently decided
to implement a competency programme, and then initiated
as pressure has come on the a formal process, on the basis of the allegations alone. The
employment jurisdiction to whole timeline took place over the period of more than a year,
culminating in dismissal.
increase awards for hurt and The ERA held that Mrs Maday had been unjustifiably
humiliation following two disadvantaged and unjustifiably dismissed. The school did not
tell Mrs Maday the identity of the complainants, did not promptly
awards around the $100,000 inform her of most of the complaints, did not adequately
mark in the Human Rights investigate the allegations, and did not supply her with sufficient
details of the allegations. The ERA also found that a fair and
Review Tribunal. reasonable employer, having conducted a proper investigation,
could not have concluded that Mrs Maday had failed to meet
the appropriate professional standards and that dismissal was
appropriate. The ERA did not consider that Ms Maday had
contributed to her dismissal.
In deciding the quantum of the hurt and humiliation award, the
ERA used a banding approach, similar to that previously used in
the Employment Court decision in Waikato District Health
Board v Archibald. Mrs Maday had been diagnosed with a form
of post-traumatic stress disorder; her health, well-being and
confidence had been negatively impacted; and on one occasion
her blood pressure was so high that she had to remain at the
school’s health centre until it dropped sufficiently to enable her
student son to be called to drive her home. She was viewed by the
ERA as having suffered hurt and humiliation at the high end of the
mid-range. As a result she was awarded $25,000 for each of the
unjustified disadvantage and unjustified dismissal claims, resulting
in a total award for hurt and humiliation of $50,000. The ERA did
not comment specifically on whether by making a separate hurt
and humiliation award in respect of each grievance, there was an
element of overlap in respect of the damage suffered.
Accordingly, this case is an interesting illustration of both the
trend towards increasing hurt and humiliation awards, and the
potential for significant awards to be made where an employee
claims both unjustified disadvantage and unjustified dismissal.
Source: Maday v Avondale College Board of Trustees (2018) NZERA Auckland 131
Christie Hall, New Zealand Law Leader,
Employment and Health & Safety Law Leader
William Fussey, Senior Solicitor,
Employment and Health & Safety Team, EY Law
8 | People Watch Edition 3 November 2018 People Watch Edition 3 November 2018 | 9
The difficult link between Implementing performance management processes is
fraught with difficulty at the best of times. Matters are
Despite these steps Ms H continued to display obvious signs of
heightened anxiety. The employer’s belief that Ms H’s reactions
performance management and
were due to a discomfort around being performance managed
further complicated when the employee involved is
failed to appreciate they were a symptom of her anxiety disorder.
suffering genuine mental health issues and these are Early in the process after Ms H has disclosed her medical
linked to both the performance and the performance
mental health
issues, the employer considered obtaining medical evidence as
management process. to her condition and the steps required to safely manage her
performance in the circumstances, but ultimately, the employer
With an employer’s duty to ensure a safe workplace (including
did not seek that advice.
safeguarding mental health) becoming an increasing area of
focus, the recent Employment Court case of FGH v RST provides The Employment Court found that the performance management
a good description of the steps employers are expected to take to process, which took place over a seven month period, had
manage these situations. become oppressive in the circumstances: it was being used in an
attempt to control adverse behaviour arising from Ms H’s ADD
We note that the names of both the employer and employee in
condition and anxiety. It was also entirely foreseeable that Ms H’s
this case are suppressed.
anxiety disorder would cause her to react adversely if the formal
Ms H, an employee of a government organisation, was undergoing processes were maintained. The Court held that to commence and
a performance management process. She had informed her maintain disciplinary processes, in the absence of steps to obtain
employer that she suffered from ADD, was having trouble adequate medical advice, was not action that could be expected of
sleeping, and was on medication to treat anxiety. Ms H raised an a fair and reasonable employer in the circumstances.
unjustified disadvantage grievance claiming that her employer
The court rejected another of Ms H’s unjustified disadvantage
had failed to provide a safe environment when dealing with her
claims, finding that the employer’s expression of free and frank
performance issues. She also raised an allegation of bullying.
concerns did not constitute bullying. Although the performance
The Employment Court upheld the disadvantage claim on management process was described as “tenacious”, it was not
the basis that Ms H’s employer did not meet its statutory and hostile or unprofessional.
contractual obligations to provide a safe and healthy work
Key takeaways
environment. The employer had taken a number of steps in
managing Ms H’s illness including: Where managing employee performance, employers are expected
to react fairly and reasonably to the situation presented to them,
• Providing extended timeframes to respond to including the mental state of the employee.
performance concerns
Where there are mental health issues that may affect either
• Providing EAP counselling
performance itself or the employee’s response to a performance
• Allowing breaks to attend the gym; and management process, the employer should consider how these
• Providing support from business coaches. issues may best be dealt with to avoid causing further harm to the
employee. Independent medical advice may be required.
Throughout the process the employer will be expected to continue
to monitor the situation and to react appropriately to any
deterioration in the employee’s condition, including potentially
suspending the process while additional medical advice is sought
or while steps are taken to stabilise the employee’s condition.
Source: FGH v RST [2018] NZEmpC 60
Christie Hall, New Zealand Law Leader,
Employment and Health & Safety Law Leader
William Fussey, Senior Solicitor,
Employment and Health & Safety Team, EY Law
10 | People Watch Edition 3 November 2018 People Watch Edition 3 November 2018 | 11
Agile Manifesto —
Frequently asked questions
What is the agile manifesto? How are organisations applying it? What can we learn from others who have embarked on
Agile journey?
During our July People To address some of the challenges faced by software developers
in 2001 a group defined a manifesto for encouraging better ways
Some are moving to Agile in selected parts of their organisations,
this has generally been for specific projects wanting to experience Regardless of whether organisations implement Agile on a project
Watch Seminars in Auckland, of developing software. The four values that underpinned this and test aspects of Agile. Particularly as a tool to break down work basis, or organisation wide, the idea of working in small, cross-
Agile Manifesto have started to permeate across other business into sprints and deliver iterative outputs. Others are truly using functional units seems to resolve issues far more quickly than
Wellington and Christchurch we functions to coordinate and deliver work effectively, these include: Agile methods to transform and are applying it organisation wide. in the past. Employing these contemporary methods will enable
had unprecedented numbers • Individuals and interactions over processes and tools. What does scaled Agile typically look like?
organisations to respond to the increasingly competitive and
rapidly changing environment.
of people attend wanting to • Working product over comprehensive documentation.
• Customer collaboration over contract negotiation.
‘Agile at Scale’ is the broad terms used when an organisation
chooses to take Agile beyond a pilot or particular project team to
understand more about Agile. • Responding to change over following a plan.
the broader. This may involve multiple teams working on multiple
products across an organisation. 49% of agile enterprises today Do you have a question about Agile?
Based on the level of follow up Where are we seeing Agile being implemented outside of
Software Development?
are using or actively considering a framework for scaling. Success
in moving to scaled Agile typically involves the organisation Please feel free to get in touch with Josh Blackie at
we have had, we are seeing a Organisations from a diverse range of industry sectors outside having a transformative ambition and strong sponsorship. This is Joshua.blackie@nz.ey.com
number of organisations of technology either have or are seriously considering moving
to Agile ways of working in an attempt to become more agile.
underpinned by significant investment in upskilling the workforce
in these new ways of working and strong focus on leadership
thinking about Agile and A high profile example of this in the New Zealand market is Spark. capability to really ‘push the envelope’ in thinking differently about
people practices.
We are seeing it working in other areas and functions, from
wanting practical insight into the manufacturing to product development to marketing, and now What does this mean for the leaders and HR professionals
Source: June 2006 - Gartner Report on Market guide for Enterprise Agile
Frameworks.
“how” of Agile. its transforming how organisations hire, develop and manage
their people.
charged with leading this transformation?
A large number of the challenges arising from pursuing an Agile
Why are organisations pursuing this way of working? way of working are people-related, as it requires a culture and
Rapid innovation is becoming a strategic imperative in today’s capability transformation. There are also opportunities for the HR
Our Agile services team answered a wide variety of questions from
world. Agile working allows organisations to deliver something function themselves to consider applying Agile ways of working to
attendees across the three centres, so we thought it would be
of value to the business and to the user faster. This delivery themselves.
useful to replay some of those burning questions that people have
about Agile and its potential benefits for organisations. generates insight and feedback to iterate and continually improve
an offering with the customer at the core.
Furthermore, organisations are pursuing greater speed to market,
increased time to value for customers, increased efficiency, the
ability to respond more effectively to complexity and reducing
predictability. A bi product of all this is having more engaged
teams who are learning and delivering in a sustainable way. Meredith Wilmot, Director, People Advisory Services
Joshua Blackie, Manager, People Advisory Services
12 | People Watch Edition 3 November 2018 People Watch Edition 3 November 2018 | 13
High Court full bench
provides guidance on health
and safety sentencing
The High Court has determined that the correct approach to • The third step is a new step requiring the sentencing court to The Court was critical of the levels of discount applied by the
sentencing under the HSWA now requires a consideration of consider whether any further orders are required. The addition District Court for mitigating factors. Usually a 25% discount from
With a six-fold increase in four steps: of this step is to take into consideration the potential imposition the starting point is applied for an early guilty plea, together
penalties being brought in • The first step is to assess the amount of reparation, which is of orders that were not available under HSWA’s predecessor,
such as adverse publicity orders or health and safety
with a further discount of up to 30% if the defendant has made
voluntary payments to the victim, taken steps to ensure the
the amount payable to the victim directly. The Court noted that
by the Health and Safety at the increase in fines under HSWA should not have any impact on project orders. event will not recur or has not had previous conviction. The High
Court considered that a 30% discount should only be awarded
Work Act 2015 (HSWA), a key levels of reparation, because the level of harm to victims under
HSWA has not changed.
• The final step involves making an overall assessment of the
in exceptional cases, where the defendant had gone above and
proportionality and appropriateness of all the penalties imposed
question has been whether the • The second step is to assess the quantum of the fine imposed. in the preceding steps. In its judgment, the Court also made
beyond, following the event.
courts would simply increase To assist with this, the Court has set out a four band approach
as below, considering aggravating and mitigating factors
reference to the fact that a defendant’s ability or inability to pay
would be a consideration at this stage. For clarity, the Court
The Court did not criticise the District Court’s approach to
assessing ability to pay a fine, which has seen a number of fines
fine levels by six, or whether a also indicated that reparation would not be affected here, under HSWA significantly reduced. The District Court has taken
rather it would only be the fine and other components of the the approach that only in an extreme case should a fine for a
more nuanced approach would overall penalty. health and safety breach put a company out of business. This is in
be adopted. Culpability level Starting point for fine some contrast to the Taskforce that gave rise to the HSWA, which
indicated that “profit gained in the context of causing reasonably
preventable harm to workers is ill-gotten gain” and, businesses
Low culpability Up to $250,000
that could not operate safely ought to be put out of business.
Under the previous legislation, the courts used a three step
The High Court’s decision provides clarity around the level of
approach to sentencing and assessed offending against three Medium culpability $250,000 to $600,000
fines that can be expected from the District Courts in future cases
culpability bands – low, medium and high. Since the HSWA came
and confirms the sentencing methodology that will be applied.
into force, the District Court has adopted a range of approaches.
High culpability $600,000 to $1,000,000 It remains clear that under the HSWA we will continue to see a
In a large number of cases, the initial fines have been significantly
significant uplift in fines and, coupled with a likely reduction in
reduced due to financial hardship. Reductions of up to 50% off the
the mitigation discounts, these fines are likely to have a material
initial starting point to account for mitigating factors have also Very high culpability $1,000,000 +
financial impact on businesses sentenced under the HSWA.
been a feature.
Source: Stumpmaster v WorkSafe New Zealand (2018) NZHC 2020
Christie Hall, New Zealand Law Leader,
Employment and Health & Safety Law Leader
Frank Peters, Associate, Employment and Health & Safety Team,
EY Law
14 | People Watch Edition 3 November 2018 People Watch Edition 3 November 2018 | 15
Resourcing talent from an international labour pool Away from the cities
Resourcing talent from an In a market like NZ, all businesses will have to consider whether
they source talent from outside of the country where they have
INZ and the Government have a targeted immigration program
to encourage international talent and business to recruit into
international labour pool
growth targets beyond organic. This however presents challenges locations in New Zealand outside of major cities, stimulating
and can cost time and money not applicable in the ordinary course business in regional NZ. This presents an opportunity for
of hiring in New Zealand. businesses operating around the country, or willing to support
flexible working arrangements with their recruits.
When recruiting internationally, there are technical considerations
for businesses to ensure the role and candidate will meet Traditional hubs such as Auckland, Wellington or Christchurch
immigration requirements. Additionally, factors such as travel are not always preferred by those relocating to New Zealand,
expenses, relocation packages and candidate suitability all need with many looking to relocate (amongst other reasons), to
to be taken into account. Applicants from certain countries move away from large cities to more regional settings. Cost of
where regulations are more stringent may also slow down the living is also typically lower in regional locations which can be a
recruitment process. powerful bargaining tool if looking to recruit into the country in a
competitive market.
Due to this complexity, expectations for timeframes, including
assistance from third parties and Government processing should As such, businesses should focus on growing markets in their
all be factored in for a successful application process and arrival in value chain and consider the availability of flexible working
New Zealand. arrangements if a candidate would like to work in New Zealand but
is not attracted to the cities. There are several avenues through
But what of the bigger picture for businesses recruiting
immigration application processing to flexible employment
international talent into New Zealand?
arrangements to enable this.
Investing in the right candidate
Right people, right place, right time, right cost
International relocations can be expensive, and significant
With so much to think about, it is important to step back from
investments of time and money need to pay dividends. So how
your recruitment and workforce planning programs to consider
do employers get the best out of their international talent, in the
the opportunities that exist for businesses through the right
short term and in a lasting sense?
international appointment.
Almost all employers seek to demonstrate diversity in their
With such an investment in any international recruitment,
workforce, one measure for which can be the integration of
businesses are realising more and more the need to think beyond
overseas talent with local colleagues. Internationally diverse
the employee “hitting the ground running”, and think about the
workforces typically demonstrate different perspectives,
long term strategy and benefits to the company.
innovative thinking, and have opportunities to challenge each
other, exchange refreshing experiences and skillsets.
However very few employers measure the contributions of
overseas talent to their business specifically, in a short term sense,
but also throughout an international appointment in NZ, and even
beyond repatriation.
How can businesses ensure good ideas or initiatives stay with the
business after international talent has left NZ? Can businesses
design relocation packages or structure incentives with a view to
integrating the benefits of international talent in the country in
a long term sense, or even seek to localise the employee in the
country, or keep them beyond a scheduled repatriation date.
Michael Harper, Director, People Advisory Services
Kristy Verster, Senior Manager, People Advisory Services
16 | People Watch Edition
Edition 33 November
November2018
2018 People Watch Edition 3 November 2018 | 17
Contacts
Rohini Ram
People Advisory Services New Zealand Leader
People Advisory Services
Tel: +64 274 899 917
rohini.ram@nz.ey.com
Workforce Advisory
Una Diver Meredith Wilmot
Partner Director
People Advisory Services People Advisory Services
Tel: +64 276 20 10 56 Tel: +64 2167 9963
una.diver@nz.ey.com meredith.wilmot@nz.ey.com
Jason Blackmore Joshua Blackie
Senior Manager Manager
People Advisory Services People Advisory Services
Tel: +64 21 534 668 Tel: +64 27 2626 555
jason.blackmore@nz.ey.com joshua.blackie@nz.ey.com
Employment and Mobility
Graeme Knapp Michael Harper James Barlow
Executive Director Director Senior Manager
Tel: +64 274 439 849 People Advisory Services Tel: +64 274 899 099
graeme.knapp@nz.ey.com Tel: +64 27 246 3854 james.barlow@nz.ey.com
michael.harper@nz.ey.com
Immigration
Kristy Verster
Senior Manager
People Advisory Services
Tel: +64 21 226 5723
kirsty.verster@nz.ey.com
Employment Law
Christie Hall Frank Peters
Director Manager
EY Law EY Law
Tel: +64 2187 2596 Tel: +64 9 348 8089
christie.hall@nz.ey.com frank.peters@nz.ey.com
18 | People Watch Edition 3 November 2018 People Watch Edition 3 November 2018 | 19EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organisation, please visit ey.com. © 2018 Ernst & Young, New Zealand. All Rights Reserved. APAC No. NZ0000098 PH10097203 ED None This communication provides general information which is current at the time of production. The information contained in this communication does not constitute advice and should not be relied on as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Ernst & Young disclaims all responsibility and liability (including, without limitation, for any direct or indirect or consequential costs, loss or damage or loss of profits) arising from anything done or omitted to be done by any party in reliance, whether wholly or partially, on any of the information. Any party that relies on the information does so at its own risk. ey.com
You can also read
