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Thai-Anh Cooper

The Proposed Changes To The 90 Day Trial Period

The Proposed Changes To The 90 Day Trial Period

The Proposed Changes To The 90 Day Trial Period

In their 100 day plan, the new government are intending to make changes to employment law. One change is to overhaul the 90 day trial period, let’s explore...

Are You Ready If The Labour Inspector Comes Knocking?

Are You Ready If The Labour Inspector Comes Knocking?

Are You Ready If The Labour Inspector Comes Knocking?

So tell me, could your business afford to come up with $200,000 to fix wage errors? Well, that is what happened in a recent case investigated by a Labour Inspector.

The Importance of Good Record Keeping How do your employment records look? Are they colour coded, filed alphabetically and 100% up to date? If they are looking less than desirable, then you want to read this blog. As of 1st April 2016, new employment legislation states that employers must keep accurate employment records, and be able to produce them when requested. Read on if you need to double check you are complying with good record keeping. Why is good record keeping important? Due to the large number of businesses who are keeping incorrect records, Labour Inspectors have issued a warning that businesses should be prepared for a visit. If the inspectors find that your records are not up to scratch, then you could face penalties. Don’t be complacent and think that your business is too small, too unimportant, or too under-the-radar for an inspector to call on. What if they do come calling, and your records are poorly kept or non-existent? Apart from the threat of a Labour Inspector, good record keeping has many other benefits: Builds a relationship of trust with your employees Safeguards you in case of an employee dispute Ensures you are meeting your obligations as an employer by giving your employees the correct entitlements What records do you need? You will need to ensure that you have records in the following three areas: Wage and Time records including all employee details and the hours worked Holiday and Leave records showing leave owing, and taken by each employee Employee file records to include the individual details for each employee including employment agreements. All of these records will need to be easily accessible, and able to be produced at a moment’s notice. The requirements for each category are quite extensive, so it is worth dedicating some time to getting each one right. Why is this coming to light? Recently there have been a lot of cases of employees being treated unfairly. This is another step that the government are taking to protect employees in their jobs. Every employee is entitled to at least minimum wage, appropriate annual leave, and set hours of work. Record Keeping Requirements Employment New Zealand [https://www.employment.govt.nz/about/employment-law/employment-law-changes/record-keeping-law-changes-2016/] have indicated some top tips for the increased responsibility around good record keeping. They are... Keep your records up to date Retain your business files for at least 6 years Maintain accurate information so that you can easily calculate leave entitlements or a final pay Have accurate role descriptions to help manage performance Even if you outsource your payroll, you need to maintain accurate records Penalties for poor record keeping start at $1000 and can reach up to $20,000. These are not small sums of money. Could your business afford to receive a $20,000 bill? How We Can Help Have you been reading through this article and second guessing your current records? Or maybe you know your files are not up to scratch. It can be an imposing task to update your records if you don’t know what they should contain. Don’t waste time blindly working on your records. Our new e-course shows you exactly what to do to get your records compliant with New Zealand Law. The course contains five comprehensive, practical modules with videos and workbooks. Those modules are: Why Record Keeping is Important: how to avoid fines and penalties What Records Need to be Kept: with exact directions on each piece of information required Record Keeping Case Study: a practical look at how you should be keeping your records How Should Records Be Kept: the means for documenting and filing records appropriately Safeguarding Your Business: good records can protect your business As you work through the course, you can update your records as you go. You will be certain that your records are legal, and you will be able to use those good practices going forward. Check out this link for more information on our record keeping e-course - Click here to access the course.   This course is also available in Mandarin - Click here to access Mandarin course  

The Importance of Good Record Keeping

How do your employment records look? If they are looking less than desirable, then you want to read this blog. Good record keeping is key to protecting your business.

The Good, The Bad And The Ugly Of Employing Family Members Are you considering employing someone in your family? Before you take the plunge and do something you might regret, it is vital to assess whether it is the right decision for your business or not. Employing family members can be fantastic, but it can also turn out as a disaster. We have done the homework for you so that you can read up before jumping in with both feet. The Good Loyalty and Trust One of the most fantastic things about employing family is that you know exactly what you are going to get. As you have known them for many years, you will have seen them at the best times and also at their worst times, so know how they react to pressure. Because they will have your best interests at heart, you can expect loyalty, and trust they will do the best job possible. Good Culture When you work with your family it can be easy to build a great workplace culture. You get on, you will be comfortable around each other, and know when to steer clear. There is no awkwardness of needing to get to know each other before you can work together efficiently. In a family business, often the culture has been built over generations and tweaked for the current situation. The culture will be able to drive a cohesive decision making process that aligns with the business values and growth goals. The Bad Taking Advantage Some family members can have a tendency of taking advantage. You may find some of the lines get blurred and the rules are only loosely observed. They may expect more leniency, more time off, higher salaries, or better job content than their colleagues. You will need to manage this carefully so that their behaviour does not affect your business. You as an employer must not take advantage either. Employing family members still means paying them fairly, at least minimum wage. They must also have suitable working conditions, reasonable working hours, and appropriate holiday entitlements. Also, if you have more than one team member, be very careful not to play favourites with your family members by being more lenient. This can cause resentment from the other team members, and let the family member get away with poor behaviour without reprimand. Conflict It is easy for home and business life to collide into one when you work together. Don’t let personal conflicts affect business, and likewise, don’t let business conflicts tarnish personal relationships. A family business is often full of intense passions as everyone wants what is best for the business. But, you might not always be able to agree on what the best thing is. You may want to consider an outside perspective to resolve conflict over the direction for the business. Whether this means a business coach, a trusted advisor, or even governance from an external board or director - use the means that suit your business. The Ugly Safeguard The Unexpected No matter who you employ, things can go wrong. Whether it is a simple dispute that needs resolving or a major issue, it is important to safeguard your business. You NEED to have a contract in place with all of your staff or contractors, and that includes family members. That means if push comes to shove, you can put aside the family aspect and fall back on the paperwork. You can follow the correct processes for resolution without the heart strings getting in the way. Hostile Takeover Remove the danger of hostile takeover in a family business by succession planning. Get a structure in place that works in the best interest of the business, but still satisfies the individual parties involved. Recognise that everyone will want to have different levels of involvement. Some will want to see the business continue to tick over and will be happy to maintain the day to day running. But some will want to push the business forward, growing it and opening up its potential. Respect each person’s involvement and assign roles accordingly. Vital Considerations When Employing Family Members So we have gone over some of the things you can potentially expect when employing family members, or working in a family business. To help you out, this is a handy list of reference points to make the process as smooth as possible… ●       Have a formal Job Description and Contract in place so that all parties know what is expected of them ●       Keep all of the appropriate documentation you would for any other employee: contract, hours worked, pay history, leave taken, proof of their ability to work legally in New Zealand, and legislation records like PAYE ●       Set clear expectations in terms of behaviour, responsibilities, hours, salary and other potential points of conflict ●       Ensure that they have the skills and temperament required for the role, don’t give them a job they aren’t qualified for because it seems easy, or you feel sorry for them ●       Seek external advice from someone able to see the bigger picture ●       Try to separate business and personal life as much as you can, especially if you have members of your team who are not family members. This removes the perception of favouritism, or preferential treatment ●       Go into it with your eyes open and be willing to admit if things need to change, or are not working. An awkward conversation is better than jeopardising your whole business If you need some advice on employing family members, dealing with one already in your employment, or if you need assistance with your family business, then don’t hesitate to get in touch. At In2HR, we work with a number of family businesses and therefore we are able to give you that outsider perspective that is so vital in the success of a business involving family. Get in touch with one of our friendly HR Consultants today!

The Good, The Bad And The Ugly Of Employing Family Members

Before you take the plunge of employing family members and do something you might regret, it is vital to assess whether it is the right decision for your business or not.

Joint Employer Predictions Come True – Proposed Changes to Legislation It’s great to hear that our crystal ball is working well. Back in January, we wrote an article on the potential that Franchisors and Franchisees could be seen as Joint Employers [ you can read that article here ]. That prediction seems to be coming true, as the wheels are turning in Australia on proposed legislation changes. It will only be a matter of time before we see the same legislation changes here in New Zealand. Here is what is happening currently… Senate Committee Making Progress As of an April 6th deadline, the senate committee responsible for reviewing the Australian Protecting Vulnerable Workers Bill had received a number of public submissions in support of changing current legislation. The proposed legislation would make Franchisors liable for any outstanding wages in their networks. This even means outstanding wages for workers who are employed and paid by their Franchisees. The ruling comes in the wake of the recent 7-11 debacle, where the privately-owned company has been forced to repay almost $88 million to underpaid workers. This bill is a controversial one. While the intention of ensuring all workers get fair wages and fair treatment in their employment is well-meaning, organisations such as the Franchise Council of Australia and The World Franchise Council oppose the liability on franchisors. The danger of an entire network being brought down by the actions of a couple of franchisees is worrying. The Risks of the Bill The major risk to Franchisors if the bill is passed in its current form is, that they could be liable for their Franchisee’s failure to pay their own staff correctly. The change in legislation would see the Franchisor judged on if they ‘could reasonably have been expected to have known’ about the infractions of their Franchisees. A Franchisor would not have to have direct knowledge of a Franchisee’s wrongdoing to be held liable. And it is not just underpayment of employees that is covered by the Protecting Vulnerable Workers Bill. It extends to a large number of workplace law compliance areas. As well as increased civil penalties, a Franchisor can be ordered to directly compensate employees that have been underpaid by their Franchisee. A Target on Franchisors Franchisors are being targeted in these legislation changes as, franchises are commonly known to have ‘vulnerable workers’. These proposed changes are in direct response to the practice of Franchisees deliberately underpaying employees and Franchisors claiming no knowledge of such a business model. The proposed changes in legislation will see a significant increase in the responsibility of Franchisors. They will be directly responsible for all of the independent businesses operating in their network. This leaves many Franchisors questioning the difference between company owned stores versus franchised stores - a question that we will have to wait and see as the legislation evolves.  What Can Franchisors Do? This new legislation will allow Franchisors to remove liability if they have taken reasonable steps to prevent their Franchisees from acting with incorrect practices. However, this is not a safety net. There are no set rules around what the ‘reasonable steps’ should be. It will all depend on the individual circumstance of the franchise. Consideration will be made to the size of the network and the available resources for regulating the Franchisees within, as well as the Franchisor’s influence, and their arrangements for assessing compliance with the Act. NZ Franchisors - Time To Get Prepared While these proposed changes relate to Australian Law, it will not be long before New Zealand Employment Law falls in line. Now is the time to make arrangements that will protect your franchise network. Put systems in place to assess that your Franchisees are abiding by correct employment practices. Then you will be ready for this when these changes come to New Zealand. At in2HR, we have been busy preparing franchise systems for these changes. We can help you safeguard your franchise by implementing:   A robust on-boarding program for your Franchisees so that they understand their employer obligations. Ensuring that your Franchisees have the HR support mechanisms to implement best people practices into their business and your franchise. Provide visibility to you as a Franchisor into your franchisees business through conducting regular HR audits. This will give you peace of mind that your Franchisees are complying with employment legislation and that your brand is protected.  If you are an established franchise or a new franchise in NZ, get in touch with us at in2HR to see how we can help you develop robust systems that will keep you out of hot water.

Joint Employer Predictions Come True – Proposed Changes to Legislation

Does your Franchise have a robust system in place for checking that your franchisee's are compliant with current Employment Legislation?   Now may be the time to review your practices with joint employment looking like it may become a reality for the franchising industry. 

Are you doing enough to protect your brand from the wrong type of publicity?  Do you have visibility of your franchisee’s employment practices? If not, now is the time to find out. International employment standards are changing rapidly, to a point where franchisors and franchisees could be seen as a joint employer. It won’t be long until this will have an impact on NZ employment legislation. Check out our recent blog post on this topic to read more about it [http://www.in2hr.co.nz/new-blog/is-your-franchise-ready-joint-employers]. As a master franchisor, you need to ensure that your franchisees are compliant with employment law. This means treating their employees fairly, maintaining accurate employment records and paying them at the correct rate. A recent ruling in Australia has seen the master franchisor, Yogurberry, penalised for the actions of their franchisees. We predict that these types of decisions will be seen in New Zealand before too long, so it’s best to be on top of this now. Yogurberry The frozen yogurt chain has recently come under fire for exploitation of its workers. Four Korean workers who held jobs under a Sydney franchisee were being paid as little as $8 an hour, well below the minimum wage . They were also not receiving the correct employment entitlements, such as superannuation. Penalties totaling AU$146,000 have been handed out, with almost half of those penalties assigned to the master franchisor of the Yogurberry Group. The master franchisor has been deemed an accessory to the exploitation of the workers at the franchisee's Sydney outlet. The Fair Work Ombudsmen has ordered the Master Franchisor of Yogurberry to carry out an external HR audit of their system. This will ensure that all franchisees within the chain are compliant with employment law. All of the Yogurberry franchisees and their managers will require training on employment law. Domino’s Pizza Recently in Australia, Domino’s Pizza has been making headlines for underpayment to its staff. A Fairfax recording was released where allegations were made against a Domino’s Franchisee for receiving ‘kickbacks’. This means that a Domino’s franchisee was caught selling falsified employment agreements for immigration purposes. This was in the range of $100K-$150K for each agreement.  Domino's Pizza in Australia are currently under investigation for these allegations.  Franchisor Responsibility The ruling for Yogurberry and the ongoing investigation of Domino’s sends a strong signal to franchisors that they remain responsible for their brand.  What To Do Now Because of these high profile international cases, The Ministry of Business, Innovation and Employment (MBIE) are looking to enforce correct practices across all areas of employment, including small business and franchising. They have stated that it is ‘time for franchisors to ensure franchisees are compliant with employment law’. As a franchisor, you need to ensure that you have correct procedures in place for franchisee behavior. Your franchisees are required to abide by NZ employment law, so make the following considerations: 1)     You need to put thought into how and where your franchisees receive HR support 2)     Have the mechanisms in place to check on your franchisees’ businesses to ensure they are abiding by employment legislation. This will give you visibility of their practices and ways to mitigate risks to your brand. At in2HR, we call this conducting a Pulse Check on your franchisee. 3)      For new franchisees coming into your franchise, set them up for success by giving them in2HR’s franchisee on-boarding program. This provides them with tools and resources to transition from being an employee to being an employer.  The Yogurberry case illustrates how costly it can be for the brand if their franchisees are not complying legally. Now is time to take action to prevent anything similar happening to your franchise.

Are you doing enough to protect your brand from the wrong type of publicity? 

Franchise systems are hitting the headlines for the wrong type of publicity. Now is the time to safeguard your franchise from the wrong type of publicity. 

Franchisors and Franchisees as Joint Employers Recently, international law has undergone changes that could impact your franchise in NZ. The law is rapidly changing to reflect franchisors and franchisees as joint employers. Now is the time to ensure that your business is utilising the correct practices. In recent times many large franchise corporations have come under fire for their employment practices. International cases like the ones with 7/11 and Caltex are moving closer to home. The Ministry of Business, Innovation and Employment (MBIE) are enforcing correct practices across all areas of employment, including small business. Franchisors – now is the time to wake up and be prepared. Don’t let yourselves get in a mess over incorrect practices. Franchise Joint Employers – What does it mean for me? In the eyes of the law, franchisors and franchisees could be viewed as joint employers. This means that franchisors are being held accountable for their franchisees’ actions. Franchisors need to ensure that their franchisees are operating within the boundaries of New Zealand employment law. This means keeping correct records, meeting all the correct obligations and treating staff fairly. The Labour Inspectorate has recently released a warning to say that all small businesses should expect a visit in 2017. Now is the time to be proactive and ensure that your franchisees are following best people practices. What do I need to do? First and foremost, you need to ensure that all of your own employment practices are correct. The next step would be to check in with your franchisees and ensure that they are following the correct procedures. There are a number of areas that they will need to be compliant in. An example of these areas are: -         Fair and correct staff employment contracts -         Fair treatment of staff -         Following company policies and procedures -         Maintaining proper employee records -         Meeting immigration requirements -         Meeting obligations for kiwisaver, PAYE and deductions These are just some of the main areas that your franchisees will need to comply with. There will be other things to consider too. It is vital to ensure these practices are correct now, to prevent major headaches down the track. How do I safeguard my franchise? As a franchisor, have you thought about how you can provide HR support to your franchisees? Here at in2HR we have specialist knowledge in franchises. This means that we are experts in helping both franchisors and franchisees with their people practices. We would be able to help you develop effective HR procedures that will keep your business out of hot water. Know that you are ready for a visit from the Labour Inspectors by having all of your practices complaint with employment law. Get in touch with us today to see how we can help.   </iframe>" data-provider-name="YouTube"

Franchisors and Franchisees as Joint Employers.

Employment law is rapidly changing and it will impact your franchise. Franchisors and Franchisees could be viewed as joint employers. Is your franchise ready?