COVID-19 EMPLOYMENT LAW UPDATE: EMPLOYERS BEWARE OF YOUR OBLIGATIONS

6th April 2020 – EMPLOYERS: time to stop and rethink?

While the lock down is in place to eradicate the spread of COVID-19, it does not eradicate employers’ legal obligations to act in good faith, be fair and reasonable in the circumstances.

The Government subsidy is just a band aid; it does not override or substitute for legal obligations.

BuckettLaw has seen many employers get it wrong.

Although it is not business as usual employers’ and employees’ employment obligations remain. As an employer, misunderstanding these obligations now could cause greater expense later. Make sure you don’t make the wrong move in these crazy times.

Redundancy ought to be a last resort, after all alternative options have been considered and exhausted.

Both employees and employers have an obligation to act in good faith and build productive employment relationships. Employees need to be flexible in their responses.

As an employer, you do not want to invite accusations that you are compelling employees to agree to less favourable terms by threatening redundancy.  Be cautious. Your actions now may affect business reputation and branding. The current Minister of Health has learnt an expensive lesson. Don’t react now to learn later.

Flexibility could avoid redundancies.  Whilst employers make sacrifice It is important that employees also have an open mind and be flexible.

The law seeks to promote engaging and active employment relationships. It is no different during this unique time. Engage with employees. Be transparent. And be willing to negotiate.  

Employers ignoring advice this may be called to account. The legal consequence for getting it wrong may be worse than the current pain.

What are my obligations as an employer? 

– To be active, communicative and constructive.
– To be honest and transparent.
– To act in good faith. All information adverse to an employee, such as what the business is thinking about continuing the business, employees ought to know about.
– Be constructive and communicative.

These obligations need to be upheld in all aspects of the employment relationship. They are key for the operation of workplaces during lock down and communicating with employees how working from home should be taking place.

Stop, think. Consult. Seek advice. 

PRIMARY SERVICE AREAS

although BuckettLaw is based in Wellington City, it services clients throughout New Zealand, with a focus on servicing employees and organisations in certain regions.

Wellington City.
Porirua City & wider North Wellington Area.
Kapiti Coast (Te Horo, Waikanae, Paraparaumu, Raumati & Otaki ).
Lower Hutt & Upper Hutt.
Masterton City & wider Wairarapa Region.
Palmerston North City & wider Manawatu-Wanganui Region.

Hawkes Bay (Napier, Hasting & Havelock North).
New Plymouth & wider Taranaki Region.
Hamilton, Taupo & wider Waikato Region.
Tauranga, Rotorua & wider Bay of Plenty Region.
Gisborne.
Auckland.

Nelson City & wider Nelson-Tasman Regions.
Blenheim & wider Marlborough Region.
Christchurch.

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Located in the heart of Wellington City, BuckettLaw services clients nationwide, with a strong presence in certain regions. If you are unsure whether you need an employment lawyer, or want a preliminary discussion on your employment issue, get in touch with one of our employment lawyers right away.
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Te Aro, Wellington

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