Minimum Wage
Minimum Wage
The minimum wage is set to increase to $21.20 per hour from 1 April 2022, an increase of $1.20 from the current rate of $20.00.
The starting-out and training minimum wage will also increase to $16.96 per hour, an increase of $.96 from the current rate of $16.00.
The dates for this new public holiday have been released, and this year it falls on Friday 24 June.
The Te Kāhui o Matariki Public Holiday Bill is at its second reading stage and we will keep you updated as the Bill progresses. As soon as the Bill is passed, we will be able to incorporate the public holiday into employment agreements.
Matariki Public Holiday
The dates for this new public holiday have been released, and this year it falls on Friday 24 June.
The Te Kāhui o Matariki Public Holiday Bill is at its second reading stage and we will keep you updated as the Bill progresses. As soon as the Bill is passed, we will be able to incorporate the public holiday into employment agreements.
COVID-19 Update
As of midnight on 24 February 2022, New Zealand is in Phase 3 of the Omicron Response.
This new phase changes the definition of contacts, isolation and testing requirements.
Isolation
Household Contact
If you live with someone who has tested positive for COVID-19, you are considered a Household Contact and will need to isolate for 7 days. You must get a test on Day 3 and Day 7 of your isolation. If you develop symptoms, you should get a test sooner.
Close Contacts
Close Contacts do not need to isolate. If you are advised that you are a Close Contact, you should monitor your symptom. If you do develop symptoms at any time, get a test, and you should isolate until you get your result.
Testing
You should only get a test if you have cold, flu or COVID-19 symptoms.
If you do not have symptoms, you should only get a test if you are told to by a health official, for example if you are a Household Contact of a confirmed case.
Rapid Antigen Test’s (RATs) are now the primary form of testing. Locations which have RATs available can be found on the HealthPoint website: https://www.healthpoint.co.nz/
There are also approved RATs available to purchase through retail outlets.
A PCR test will no longer be required to verify a positive RAT result.
If you test positive for COVID-19
If you have a PCR test, you will be sent the result via a text message from the official 2328 number. This will include a link to an online form which must be completed.
If you have had a RAT test, and recorded your positive result through the ‘My Covid Record’ app or by phone, you will also receive the text message.
You will need to isolate for 7 days. You can leave isolation after 7 days, and you do not need a negative test.
Employee Requirements
If employees are classified as a Household Contact or test positive for COVID-19, they must follow the advice of the Ministry of Health and/or Government COVID guidelines.
Employees must immediately provide verification of their COVID-19 status and/or isolation requirements to their employer.
The official text message confirming a positive COVID-19 test result can be used as proof for employers of their employees COVID-19 status.
Where employees are identified as a Household Contact, employers must be satisfied that the employee is a Household Contact of a confirmed COVID-19 case.
Financial Support for Employers
There is financial support available for employers who qualify:
COVID Support Payment (CSP)
The CSP is a payment to help support businesses or organisations which have experienced a 40% or more drop in revenue as a result of certain COVID-19 circumstances including (but not limited to):
businesses not being able to operate to usual levels due to staff having to self-isolate
businesses impacted by New Zealand based supply chain disruptions
lower retail and recreation movements in a region (for example in a CBD) due to customers working from home or self-isolating.
Applicants will not be eligible for the CSP where they:
have not taken all reasonable steps to minimise revenue losses
are a regulated business or service under the Covid Protection Framework and are not complying with the COVID-19 Vaccine Certificate requirements.
are a self-employed individual that has received, has an application pending for, or is going to apply for or receive in future, funding under the Cultural Sector Emergency Relief Fund: Grant for Self-Employed Individuals administered by Manatū Taonga - Ministry for Culture and Heritage (this only relates to the first CSP and not the second or third CSP).
More information is available here.
Small Business Cash Flow Loan Scheme (SBCS)
Under the Small Business Cash Flow Loan Scheme the Government provides loans to small businesses, including sole traders and the self-employed, impacted by COVID-19 to support their cash flow needs.
If you've previously applied for a SBCS and have fully repaid it, you can apply again.
Applications are open until 31 December 2023. You can apply through myIR.
The small business cash flow loan scheme will provide assistance of up to a maximum of $100,000 to businesses employing 50 or fewer full-time employees. This includes sole traders and self-employed businesses.
Details of the loans include:
$10,000 to be provided to eligible businesses
an additional $1800 per equivalent full-time employee
interest free if the loan is paid back within two years
an interest rate of 3% for a maximum term of five years
repayments not required for the first two years
you must show at least a 30% drop in revenue due to Covid-19, measured over a 14-day period in the past six months compared with the same 14-day period a year ago. If your revenue from the same period a year ago was also affected by COVID-19, compare the same 14-day period two years ago.
maximum amount you can borrow depends on the number of full-time and part-time employees.
Use the small business cash flow loan scheme eligibility tool and find out how to apply: COVID-19: Small business cash flow loan scheme eligibility tool
The Short Term Absence Payment (STAP)
The Short-Term Absence Payment is available to help pay employees who:
cannot work from home; and
need to stay home while waiting for a COVID-19 test result (in line with public health guidance).
The STAP is a one-off payment of $359 for each eligible worker.
Employers can only apply for it once, for each eligible employee, in any 30-day period (unless a health official or doctor tells the employee to get another test).
Leave Support Scheme (LSS)
The LSS is available to help employers pay employees who:
cannot work from home, and;
must isolate at home for at least 4 consecutive days (in line with public health guidelines) because they have been identified as a close contact (or another affected group) and may have been exposed to COVID-19.
The COVID-19 Leave Support Scheme is paid at the rate of:
$600.00 a week for full-time workers who were working 20 hours or more a week.
$359 a week for part-time workers who were working less than 20 hours a week.
To be eligible for a one-week payment of Leave Support Scheme an employee will have been advised to self-isolate for at least four consecutive calendar days.
If the employee needs to keep self-isolating for at least 11 calendar days or more and can’t work from home, an employer can apply for a second week payment of the Leave Support Scheme.
Employers can apply for third and subsequent Leave support payments for every further seven days of self-isolation.
The terms of existing employment agreements, including pay rates, continue to apply.
An employer cannot reduce an employees pay without agreement, even if the employee is at home isolating and unable to work.
Please contact us if you would like to discuss the administration of the Short Term Absence Payment or the Leave Support Scheme further.
Referrals
We are very grateful to our clients who provide us with referrals. If you know of an employer who needs support in managing employment matters, including those difficult issues that arise with employees please pass on our contact details or let us know and we will contact them to outline what we do.
Kind regards
Knowhow Limited