Addressing ‘Zero hour Contracts’ in New Zealand Stacey Campbell Senior Policy Advisor, MBIE

… What is a ‘Zero Hours Contract’ in NZ? A casual employment agreement, or something different?

Three groups of problems identified after stakeholder consultation Concerns around reciprocity Requiring employees to be available to work but not paying for that availability Restricting an employee’s ability to seek secondary employment Cancelling shifts without notice Concerns around hours of work No guarantee or certainty around hours of work from week to week Interaction with welfare system Broader issues around the move to more non-standard working arrangements and underutilisation

What problems were addressed? How? Concerns about reciprocity – availability without pay If an employer requires an employee to be available over the top of guaranteed hours, then they must have an ‘availability provision’ in the employment agreement, this sets out: The compensation to be paid for the employees availability Compensation must be “reasonable” and must be agreed by the parties at the outset of employment with regard to a number of factors. Concerns around hours of work Agreed hours of work must now be recorded in the employment agreement. If an employment agreement has no guaranteed hours of work then the employer can not require employees to be available to work. They may still offer work, and the employee may choose to accept it, but they can not be required to work.

What problems were addressed? How? Reciprocity – shift cancellations Shifts can not be cancelled without reasonable notice provided, and that period of notice must be agreed in the employment agreement. Insufficient notice = reasonable compensation An employee is entitled to full payment of the shift where the shift has already begun or an employee was not notified of the cancellation until the shift commenced. Reciprocity – secondary employment restrictions An employer can no longer restrict secondary employment unless they have genuine reasons based on reasonable grounds and those reasons are declared in the employment agreement.

What happened after? Significant change? The National Survey of Employers 16/17 showed that of the 77% of employers that were aware of the changes, 19% reported one or more impacts on their business. 10% said they had to update existing employment agreements to reflect the changes 8% said it increased the costs for their business 8% said it increased certainty for employees 5% said it restricted the employers’ ability to change hours of work All of the collective agreements in the fast food industry now have guaranteed hours of work.

The broader work programme Future of work More non standard work – gig economy Automation and more competition in low skilled employment Contractor/employee boundary blurs should contractors receive minimum statutory entitlements i.e. to sick leave? Should contractors be able to coordinate on terms and conditions?