Employment and Staff Issues
At Harmans we appreciate that many of our clients will be struggling with the consequences of damage to their homes or their businesses. For those who are employers, particularly small to medium enterprise operators, practical issues may already be arising as to dealing with employees where, due to the effects of the earthquake, work is either not available or work premises are inaccessible. We are happy to assist our clients with advice on general matters of this nature. Issues could well include:
Health and Safety
As an employer it is your obligation to take all reasonably practicable steps to ensure that employees are safe at work. In this context, it is important to ensure that buildings that may have been structurally damaged by the quake are given appropriate clearances by qualified engineers before requiring your staff to return to the workplace. Given that aftershocks are expected to continue for some weeks it will not be reasonable to put staff at risk by returning to premises that have not received appropriate clearances.
Payment of Wages
If work has temporarily ceased due to premises being off limits then whether an employer is required to continue to pay wages and salary will depend on their individual employment agreements. Some agreements will have provisions dealing with cessation of work due to natural disasters. Many (probably most) will not. If the employee was ready willing and able to work but was prevented from doing so then it is likely that the employer will be required to continue to pay the employee. It may be that agreement can be reached between employer and employees as to whether the time off can be counted as part of annual or special leave and employers facing financial burdens as a result of the disaster may well seek this sort of agreement from their employees. Employers with less than 20 employees are of course entitled to seek assistance from the government subsidy scheme which provides for a short time an amount up to $350.00 (gross) per week per employee.
Redundancy
Unfortunately for some, the devastation caused by the quake may signal the death knell (or at least a critical injury) for their business and should this be the case then the employer will need to make decisions about making staff redundant. Redundancy is a process that needs to be conducted fairly and in accordance with the law. We are able to assist employers facing that situation with the legal and appropriate manner of dealing with their staff.
Insurance Relief?
Some business owners will in these difficult circumstances forget that they have insurance that might respond including business interruption policies. Businesses should contact their insurance brokers to check the coverage that they had in place. Depending on the policy this could cover lost profitability and/or relocation costs in the event of a disaster such as this.
Good Faith
The overriding principle of the employment relations legislation is one of good faith. It is vital that employers and employees alike deal with each other in good faith in these circumstances.
Both may have suffered personal difficulties including the loss of or damage to their homes and all face the ongoing trauma associated with aftershocks which keep everyone on edge. We are happy to assist all clients in finding their way through this difficult period and returning to a productive business and employment relationship.
Contact Graeme Riach for more information.
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