TechHR
ex
L&D
UNPLUGGED
Sphere
About Us • Contact Us
People Matters ANZ
People Matters Logo
Login / Signup
People Matters Logo
Login / Signup
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

 

 

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
  • About Us
  • Advertise with us
  • Become a sponsor
  • Contact Us
  • Feedback
  • Write For Us

Follow us:

Privacy Policy • Terms of Use

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

People Matters Logo
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast
Login / Signup

Categories:

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
New Zealand to ease dismissal rules for high-paid employees under new proposal

News • 9th Dec 2024 • 2 Min Read

New Zealand to ease dismissal rules for high-paid employees under new proposal

Strategic HREmployment Landscape#HRTech#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
760 Reads
The government believes this flexibility will help organisations secure the right fit for high-level positions, reducing risks associated with poor performance in critical roles.

New Zealand’s Employment Relations Act is set to undergo significant reform, with new measures limiting unjustified dismissal claims for employees in high-paying roles. Workplace Relations and Safety Minister Brooke van Velden announced the upcoming changes as part of the ACT-National coalition's drive to increase workplace flexibility.

The policy, which will be introduced through the Employment Relations Amendment Bill in 2025, establishes an income threshold of NZ$180,000 (approximately US$106,130) per annum. Employees earning above this threshold will no longer be able to raise personal grievances related to unjustified dismissal unless specifically negotiated otherwise in their contracts. The threshold, which affects around 3.4% of the workforce, will be updated annually to reflect changes in average weekly earnings.

“This policy is about offering employees and employers more choice when negotiating contracts,” said van Velden. “Employers and employees are free to opt back into unjustified dismissal protection if they choose to negotiate their own dismissal procedures that work for them.”

The changes are designed to foster greater autonomy for both parties in leadership and specialist roles, which are seen as critical to organisational success. Van Velden highlighted the significant impact that senior executives or technical specialists can have on workplace culture and performance.

“Highly paid employees such as senior executives or technical specialists can have a significant impact on organisational performance and culture. Having a poor-performing manager or executive can have big flow-on effects on the entire business, increasing the risk of poor culture and low morale,” she explained.

The government believes this flexibility will help organisations secure the right fit for high-level positions, reducing risks associated with poor performance in critical roles.

The reform also presents an opportunity for employees seeking to advance their careers. By eliminating the risk of disruptive and costly dismissal processes, it encourages employers to take a chance on candidates for challenging roles, allowing them to gain experience in high-stakes positions.

“Employees wanting to move up the career ladder and be considered for more challenging positions will benefit from this policy. It allows employers to give employees a go in these high-impact positions,” said van Velden.

While the policy aims to give employers greater latitude in managing their teams, it does not entirely eliminate dismissal protections. Employers and employees can negotiate terms to retain unjustified dismissal coverage if desired. This dual approach aims to balance the need for organisational flexibility with individual protections.

The new policy aligns with New Zealand’s top income tax rates and reflects a broader strategy to streamline workplace relations for highly compensated employees.

The Employment Relations Amendment Bill is expected to formalise these changes in 2025, signalling a significant shift in how high-impact roles are managed. For businesses, it represents an opportunity to make staffing decisions more freely; for employees, it provides a clearer path to leadership without the looming threat of employment disputes.

Read More

Did you find this article helpful?


You Might Also Like

UBS initiates fresh layoffs including top managers

NEWS • 28th Jan 2025 • 2 Min Read

UBS initiates fresh layoffs including top managers

Strategic HRTalent Management#Layoffs#HRCommunity
68% of HR professionals struggle to find talent

NEWS • 16th Jan 2025 • 3 Min Read

68% of HR professionals struggle to find talent

Strategic HRRecruitment#HRTech#HRCommunity
ARA outlines wellbeing essentials for workers

NEWS • 27th Nov 2024 • 2 Min Read

ARA outlines wellbeing essentials for workers

Strategic HRLife @ Work#Wellbeing#Health & Safety
NEXT STORY: FedEx announces layoffs and facility closures amid network overhaul

Trending Stories

  • design-thinking-hr

    New tech incoming: how do you get people to accept it?

  • design-thinking-hr

    Why people metrics matter more than ever

  • design-thinking-hr

    ChatGPT Walks It Back — AI Giants Race Ahead

  • design-thinking-hr

    Skype is dead: Did Microsoft's leadership let a billion-doll...

People Matters Logo

Follow us:

Join our mailing list:

By clicking “Subscribe” button above, you are accepting our Terms & Conditions and Privacy Policy.

Company:

  • About Us
  • Advertise with us
  • Become a sponsor
  • Privacy Policy
  • Terms of Use

Contact:

  • Contact Us
  • Feedback
  • Write For Us

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

Get the latest Articles, Insight, News & Trends from the world of Talent & Work. Subscribe now!
People Matters Logo

Welcome Back!

or

Enter your registered email address to login

Not a user yet? Lets get you signed up!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

People Matters Logo

Welcome! Let's get you signed up...

Starting with the absolulte basics.

Already a user? Go ahead and login!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

Let's get to know you better

We'll never share your details with anyone, pinky swear.

And lastly...

Your official designation and company name.