From sick leave updates to new investment property rules, we've gathered this year's law changes into one place. Check out this summary to see what applies to your business.
When: From 24 July 2021
What: The number of sick leave days employees are entitled to will increase from five to 10. Employees will get the extra five days when they reach their next entitlement date – either after being employed in a job for six months or on their sick leave entitlement anniversary (12 months after they were last entitled to sick leave).
Employees who already get 10 or more sick days a year will not be affected by this change.
Why: To ensure that employees have enough time to recover from sickness or injury, making the workplace healthier and more productive.
What you need to do: After an employee has been working for you for six months, or when an employee reaches their next entitlement date after 24 July 2021, they will be entitled to an extra five days paid sick leave a year.
This means everything else remains consistent but there are slight variations to what you need to do.
You must:
You can:
This also applies to casual workers if, after six months, they have worked
Minimum sick leave increase(external link) — Employment New Zealand
Sick leave entitlements(external link) — Employment New Zealand
When: From 1 April 2021
What: The new minimum wage rates, before tax, are:
Why: By law, the government must review the minimum wage rates every year.
What you need to do:
Employment Agreement Builder(external link)
More information about the minimum wage(external link) – Employment New Zealand
When: From 11 February 2021
What: Multiple changes to tenancy laws, which include:
Why: Significant changes have been made to tenancy law, to modernise New Zealand’s rental laws and align them with present-day realities of renting.
What you need to do:
This is a snippet of some of the more significant changes made to tenancy law this year. See Tenancy Services’ information on all the changes below.
Tenancy laws are changing(external link) – Tenancy Services
Giving notice to end a tenancy(external link) — Tenancy Services
When: From 1 July 2021
What: All boarding houses, except those provided by Kāinga Ora or registered Community Housing Providers, must meet the five healthy homes standards. A boarding house is when a tenant rents a single room, or a sleeping area within a room they share with other tenants. They also share facilities, for example the kitchen and bathroom. This is different to a standard tenancy, where one or more tenants sign the tenancy agreement to rent the whole property. A boarding house is occupied, or intended to be occupied by at least six tenants. Also, private rentals must meet the five healthy homes standards within 90 days of any new or renewed tenancies that start on 1 July 2021 or after this date.
Boarding houses(external link) — Tenancy Services
Why: To improve the quality of New Zealand’s rental homes and improve the health of New Zealanders who rent.
What you need to do:
Healthy homes standards(external link) — Tenancy Services
What 1 July 2021 means for you and the healthy homes standards(external link) — Tenancy Services
When: From 11 August 2021
What: This relates to display, promotion, advice, age information, packaging, safety requirements, annual reporting and returns, fees and levies. The provisions of the Act are being phased in over 15 months, so some provisions are already in effect and some, like the ones mentioned here, are taking effect further down the track.
Why: The aim of these new regulations is to strike a balance between ensuring vaping products are available for smokers who want to switch to a less harmful alternative and making sure these products aren’t marketed or sold to young people.
What you need to do:
For further information on what changes are being made and how this might affect your business, the Ministry of Health has guidance on its website.
About the vaping and smokeless tobacco products law changes(external link) — Ministry of Health
When: From 1 October 2021
What: Directors and senior managers of companies that provide consumer credit must now be certified as ‘fit and proper’, to provide this service. This means they’re deemed to be financially sound, honest, reputable, reliable and competent to do the job. There are also new due diligence requirements which means that directors and senior managers need to take reasonable steps to make sure that if a business is providing consumer credit, there are procedures in place to make sure its obligations under the law are being met.
In addition, there are new requirements around:
Why: To reduce problem debt and resulting consumer harm.
If you’re a director or senior manager of a company that provides consumer credit you must:
Due diligence guidance(external link) — Commerce Commission
Fit and Proper Person certification(external link) — Commerce Commission
When: 27 March 2021
What: For properties acquired on or after 27 March 2021:
For properties acquired before 27 March 2021:
Fact sheet: Proposed changes to bright-line test(external link) — Inland Revenue
Why: These changes have been put forward with the aim of increasing housing supply and housing affordability
Investment property: law changes and tips for maximising returns