Recent Law Changes: What Coromandel Peninsula Business Owners Need to Know

90-day Trial Periods: A Universal Approach

From 23 December 2023, 90-day trial periods, once exclusive to employers with fewer than 20 employees, are now applicable to all employers in New Zealand. The extension aims to provide employers with greater confidence when hiring new employees. A trial period must be agreed upon in writing, and in good faith, before the employee starts work, as part of their employment agreement. The extension does not impact other aspects of employment relations, such as acting in good faith or worker protections related to pay, conditions, leave, and health and safety. 

Go to the Ministry of Business, Innovation and Employment for more information, updates and resources about:

• Trial periods
• And the employment agreement builder. 

Repeal of Fair Pay Agreements Legislation

From 20 December 2023, the Fair Pay Agreements (FPA) Act has been repealed. This change emphasises the importance of employers, unions, and employees working together to agree on suitable employment terms. The rights and obligations under other employment legislation still applies. If your organisation currently holds any personal information collected for the purpose of Fair Pay Agreement activities, including bargaining, it must now be disposed of in line with privacy laws.

Go to the Ministry of Business, Innovation and Employment for more information, updates and resources about:

• Disposing of information and documents safely 
• The repeal of Fair Pay Agreements legislation 
• Fair Pay Agreements legislation.

Potential Changes to Tax: June 2024 and Beyond

From June 2024, the new government's upcoming tax plan includes proposed changes such as increasing income tax thresholds, eligibility for the Independent Earner Tax Credit (IETC), FamilyBoost childcare tax credit, increasing Working for Families tax credits, mortgage interest deductibility reintroduced for rental properties, higher CO2-emitting vehicles will no longer be subject to fees, reversal on app tax reversal and repeal of the foreign buyers tax.

These changes have been signalled as an aim to alleviate financial strains for New Zealand by helping to address inflation and the cost-of-living crisis. 

More information about each of these proposed changes will be released throughout the year. 

Stay informed about updates, as major changes, including those from the Inland Revenue (IR), will be communicated.

Go to the Ministry of Business, Innovation and Employment for more information, update, to subscribe to their newsletter and for resources about:

• The new government’s tax plan explained.