A law change means employers now need to give workers compensation if a shift gets cancelled without enough notice.
Changes to employment laws are introducing compensation for workers whose shifts get cancelled without reasonable notice. Here’s what you need to know.
When: 1 April 2016.
What: You must give workers reasonable notice of any cancelled shifts. If you don’t give enough notice, you must pay reasonable compensation. Details of the period of notice and compensation rate must go into their written employment agreements. Both must be reasonable.
If you cancel work at the start of a shift or cut it short, your workers will be entitled to their full pay (including holiday pay accrual). You can’t ask an employee to agree to anything less than this.
To work out what reasonable compensation for a shift cancellation means for your business, the law sets out things to think about, including:
To work out what reasonable notice means for your business, the law also sets out things to think about, including:
Why: The Government wants to end unfair employment practices. Cancelling a shift or sending someone home early affects their ability to earn a living. Employees need some certainty that the shifts they’re asked to work will happen, so they can plan their lives and finances.
Creating an employment agreement — Business.govt.nz
including a ban on "zero-hour" contracts. Employers must now guarantee agreed hours of work for each employee. Find out more about agreed hours of work in our newsletter article.