April 6, 2020

With thousands of Kiwis now working from home, and many businesses at a standstill, the COVID-19 outbreak has created an unprecedented, and incredibly swift, change to the way we work. With the situation evolving almost daily, many employers are rightly unsure of what the implications of any changes or cost cutting measures they make might be.

Now more than ever, future financial security is a huge concern for many employees. The Government has made it very clear these exceptional circumstances do not override current employment law. There is no doubt businesses are under a great deal of pressure. But it’s important that any actions you take as an employer right now fulfill your obligations to your employees, and that you continue to act in good faith and in a fair and reasonable manner.

Below we’ve summarised some of the key points you’ll need to be thinking about as an employer.

WORKING FROM HOME

Health and Safety

Thousands of Kiwis are now working out of their newly created “home office” – for some that might just have to be the kitchen table. Even though your employees are now home-based you are still obliged to provide a safe work environment, as well as appropriate equipment with which to undertake their work. Without the current possibility of on-site checks, health and safety measures could include:

Access to online help/tips for setting up their workstation ergonomically
A checklist to identify and rectify any hazards (loose cords/overloaded plugs etc) in the work area.
Apps which schedule in regular break times
Information around maintaining mental well-being during this stressful time.

This may be a time when you need to “check in” on your employees much more often – especially juniors. Many people will also have children at home which will increase the need for flexibility around work hours.

Insurance

You may need to contact your insurer to see what your cover is for work equipment used at home or the home being the main place of work.

Security of client information and data

If your employee is working from home, you’ll need to ensure they are maintaining your agreed practices around the handling of sensitive or private information and data. For example, working in a private space (i.e. not working in the lounge in full view of any flatmates) and sending information only through agreed secure channels. We recommend checking in with either the person responsible for in-house IT or your external IT supplier to ensure any home computers used have the required security and anti-virus software installed.

Privacy of client data and health and safety are two important issues for consideration now that all but essential workers are working from home. Image: Charles Deluvio/Unsplash

LEAVE

Use of leave during the outbreak has been highlighted in the news media, with some employees being unfairly “required” by their employer to use annual or sick leave without consultation. In general:

If your employee is unable to work their normal hours, you can discuss with them the option of taking annual leave during the lockdown. However, you cannot require your employees to take leave without first trying to reach an agreement with them. If you cannot come to an agreement but still want an employee to take annual leave, you will need to give them at minimum 14 days’ notice.
You cannot require employees to take sick leave unless they, their spouse or a dependent are genuinely ill.
If you are accessing the Government’s Wage Subsidy, you and your employees can agree to use some annual leave in order to top this up to full pay. Please note: annual leave cannot be used to top up the pay of an employee that is working.
Using the Government’s Wage Subsidy does not affect leave entitlements. Employees are not required to exhaust their sick leave or annual leave to be eligible for these payments.

Information on the Government’s Wage Subsidy Scheme is available here.

CHANGES TO EMPLOYMENT AGREEMENTS

It’s likely that many, if not most, businesses will need to undertake cost-cutting measures. You must act in good faith within the terms of your existing employee agreements, and consult with your employees on any changes.

You must reach agreement with your employee if there are to be significant changes to a role, or changes to salary or hours.

REDUNDANCY

If you are in the unfortunate position of needing to make someone redundant, there is a very prescriptive process to be followed. As a rule, this involves providing as much information as possible to the employee for the reasons behind the need for redundancy.

Please note this article is intended as an overview only and does not provide specific legal or employment advice. Please get in touch if you have any questions and we’ll be able to discuss your individual situation and needs.

USEFUL WEBSITES

We’re mindful the Covid-19 outbreak is a constantly evolving situation. We recommend keeping an eye on the Employment New Zealand Covid-19 webpage for the latest developments and updates.

For more information specific to employers another useful website is the Government’s official Unite Against Covid-19 Employers section.

AND LAST…BUT CERTAINLY NOT LEAST!

It’s so important that employers and employees work together during this stressful time to keep each other and New Zealand safe and healthy. Looking out for one another now means that when we come out the other side we’ll be better positioned to get back into business – whatever shape that might have to take. Kiwis are resilient and resourceful people, and we need to draw on those qualities now more than ever.

COVID-19: Key information for employers