Glossary

When an employee leaves their job with no intention of returning. If an employee is absent from work for an extended period without explanation, they could be considered to have abandoned their employment.

When an employee is regularly away from work. Reasons for absenteeism can include illness or injury, problems in the workplace, or personal reasons.

The minimum wage paid to employees over 16 years old who are not trainees or employees earning the starting-out minimum wage.

Extra payments paid to an employee to cover employment-related expenses, for example, a reimbursement, something specific related to the job (like a night-shift allowance), or in recognition of extra skills that they bring to the job.

A paid day off to take at another time. Employees get an alternative holiday when they work on a public holiday that is an otherwise working day.

The regular closure of a workplace for a holiday period or seasonal break, requiring its employees to take annual holidays or unpaid time off.

Paid time away from work for rest and recreation.

A way to learn a trade and work and earn at the same time. In most cases, this involves on-the-job training and block-course training.

A professional who examines business processes, systems and records to check for compliance and accuracy.

The daily average of the employee’s total gross earnings over the past 52 weeks.

1/52 of an employee’s gross earnings for the 12 months up to the end of the last pay period before they take annual holidays (or however many weeks they’ve worked if it’s under a year).

A payment made by an employer to an employee to compensate them for wages they were not initially paid, often due to an error in calculating their pay.

Stops a person or entity acting as an employer for up to 10 years. Labour Inspectors can seek a banning order from the Employment Court as a form of enforcement action if there’s been a breach of employment standards.

Paid time away from work that gives an eligible employee time to grieve and to take care of matters if someone close to them dies. It can be taken at any time and for any purpose relating to the bereavement.

A final, legally enforceable decision made in writing by an Employment Mediation Services mediator.

An act of breaking a law, promise, agreement or relationship.

Paid or unpaid rest time during a work period. Employees must be given paid rest breaks and unpaid meal breaks. The number and duration depends on the hours worked.

Exchanging paid annual holidays for money. Employees can ask their employer to pay out up to 1 week of their 4-week entitlement to annual holidays each year.

Not defined in employment law, but usually refers to a situation where an employee works on an as-and-when-required basis and has no guaranteed hours of work, no regular pattern of work, and no ongoing expectation of employment.

The employment agreement between 1 or more unions and 1 or more employers and 2 or more employees. Also see ‘Employment agreement’.

The processes for negotiating collective agreements.

A payment awarded to someone to recognise hurt or loss. The Employment Relations Authority can order compensation to be paid to an employee for hurt and humiliation caused by dismissal or unjustified action.

The protection of information from, and about, individuals and organisations.

When someone is compromised because their personal interests or obligations conflict, or could be seen to conflict, with the responsibilities of their job or position.

When an employee feels they have no choice but to resign.

A self-employed person or independent contractor who is hired to perform services under a ‘contract for services’.

The date a pregnant person goes into labour. The date of confinement is used to determine the start dates for primary carer leave, partner’s leave, extended leave, and parental leave payments.

Money an employer takes out of an employee’s pay. An employer can only make deductions from an employee’s pay if these deductions are required by law, or are reasonable and agreed to in writing by the employee.

The decision a member of the Employment Relations Authority makes about a case.

Someone who is responsible for leading and overseeing a company. Directors must exercise reasonable care, skill and diligence, and uphold ethical standards in the organisation they direct.

A formal procedure followed by employers to address misconduct and decide on the appropriate disciplinary action.

When a person is treated differently and less fairly than others, for example, because of their race, sex, age, religion, or other prohibited ground under the Human Rights Act 1993.

When an employer removes an employee from their job, for example, as a result of misconduct or redundancy.

When 1 or more people disagree about something and the matter remains unresolved. When employment disputes occur, it is important to take the correct steps to resolve them.

A free, phone-based service provided by Employment New Zealand, which works with employees and employers to help them resolve a problem quickly and informally before it gets more difficult to sort out.

When a person satisfies all the necessary conditions required. For example, an employee is eligible for paid sick leave if they have met the work requirements.

Any person, whatever their age, who is employed by an employer to do any work for hire or reward under a ‘contract of service’ (commonly called an ‘employment agreement’).

A service that provides free, confidential counselling and support for employees for all aspects of their lives, not just work.

An individual or organisation that hires 1 or more employees and contracts them to work in exchange for wages or salary under a ‘contract of service’ (commonly called an ‘employment agreement’).

A person who assists and represents employees, for example, in mediation. They are not bound by the same rules of conduct as lawyers and may or may not have legal training.

A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement.

A tool to help employers create tailored employment agreements for their employees. It covers what they must do by law and explains how to avoid common mistakes.

The court that hears and determines cases relating to employment disputes. It also hears challenges to determinations of the Employment Relations Authority and questions of interpretation of law. It has initial jurisdiction over matters like strikes and lockouts.

A database of cases from the Employment Relations Authority since November 2000. PDF copies of determinations since 2005 are available to download, subject to any non-publication orders that apply.

The tribunal established under the Employment Relations Act to resolve employment relationship problems.

Paid leave union members can take to attend approved courses in employment relations. Unions calculate and allocate ERE leave entitlements.

The way in which employers, employees, and sometimes unions, relate and behave towards each other. An employment relationship starts when an employee accepts an offer of employment.

Any problem relating to, or arising out of, an employment relationship, including disputes and personal grievances.

The requirements in law for how employers must treat, pay and protect their employees. All employees have these rights even if they’re not included in the employment agreement or if the agreement says they get less or worse.

A set of employment rights that have been separated out for enforcement purposes, for example, having an employment agreement, and rights around rests and breaks. If an employer does not comply with employment standards, they could face enforcement action, for example, penalties.

Behaviour that causes, or increases the risk of, material harm to the economic, social, physical or emotional wellbeing of a worker. This can include breaches of employment standards.

A period of extra unpaid parental leave usually taken after primary carer leave ends.

Paid time away from work that eligible employees can take if they, or a child who lives with them, are affected by family violence.

The last pay an employee receives from their employer. This includes their final salary or wages, all holiday pay they are entitled to, and any other payments owing.

Employment that ends on a specified date or when a particular event occurs, for example, covering for parental leave or seasonal work like fruit-picking.

Can include changing the times or days an employee works, where they work from and how they do their work, for example, job-sharing. Employees can request flexible working arrangements at any time.

An underlying principle in employment law which requires employers and employees to deal with each other honestly, openly, and in a fair and timely way.

All payments that an employer is required to pay an employee under the employee’s employment agreement for the period during which the earnings are being assessed. Gross earnings are used to calculate pay for holidays and leave.

Any unwanted and unjustified behaviour which another person finds offensive or humiliating. The behavior must be serious or repeated, and have a negative effect on the person’s employment, job performance or job satisfaction.

Rights that everyone has, for example, the right to health and safety, right to life, right to the freedom from torture, and right to the freedom of expression.

The employment agreement between an employee and an employer. Also see ‘Employment agreement’.

New or original innovations and creations of the mind. Intellectual property rights give creators and innovators the exclusive right, for a limited time, to control what others may do with their creations and innovations.

A period of structured and paid work experience within an organisation.

The process of looking into what has led to a complaint or allegation in the workplace. The purpose of an investigation is to establish the facts before a decision is made about what happens next.

When someone is summoned to court to serve on a jury. Employees can take time off work to serve on a jury. Jury service is administered by the Ministry of Justice.

Providing outsourced workers for short or long-term positions. Also known as ‘temping’, ‘supplementary staffing’ or ‘labour supply’.

A warranted employee of MBIE who ensures employment standards are met in the workplace. They can take enforcement action for non-compliance with employment standards.

Broader than employment rights, labour rights cover how all workers (employees, contractors and workers in an organisation’s value chains) are treated.

A warranted Labour Inspector who provides early resolution for breaches of employment standards and does compliance checks of fundamental record-keeping requirements. They also review entitlements to paid parental leave when referred by Inland Revenue.

An agreed period when an employee remains employed and receives full pay but does not go to work.

When an employer allows an employee time off work but does not pay them for this time. Also known as ‘unpaid leave’.

When an employer tries to make employees accept terms of employment or comply with their demands by closing, suspending, or discontinuing their business, breaking some or all of an employee’s employment agreement, or suspending employees.

A period of additional leave that an employer can choose to give employees who have completed an extended period of service.

A confidential and safe way for employers and employees to work through their issues and develop solutions with the help of an independent mediator. Mediation is usually voluntary, but in some cases can be directed by the Employment Relations Authority.

Outlines the standards that apply to Employment Mediation Services mediators. It sets out the principles of proper practice for mediators during mediation.

A written suggestion the mediator makes about how the problem might be solved. This will include a date when their recommendation becomes binding.

When an employee is unable to perform their role completely or to the required standard due to illness or injury.

The lowest amount an employee can be paid per hour. There are 3 types of minimum wage: adult, starting-out and training. There is no minimum wage for employees younger than 16 years old.

The Government’s lead business-facing agency. MBIE employs people across a range of roles, with the vision of growing New Zealand for all. Employment New Zealand is part of MBIE.

When an employee does something wrong through their actions or inaction, or their general behaviour. It can be at 2 different levels: misconduct and serious misconduct.

When a public holiday which falls on a Saturday or Sunday is moved to the following Monday (or in some cases Tuesday).

Unpaid time off work that an employee who is having a baby or becoming the primary carer of a child under the age of 6 and who does not qualify for primary carer leave can take to care for their child.

The amount of time between giving notice and the date the employment relationship ends.

When an employee is on standby, and ready and available to work.

The amount an employee is normally paid weekly.

A day that the employee would have worked had it not been a public holiday, sick leave, bereavement leave, family violence leave, annual holiday or an alternative holiday for that employee.

Any hours an employee works over and above their normal weekly hours.

Time an employee who is having a baby or becoming the primary carer of a child under the age of 6 can take off work to care for their child. There are 4 main types of parental leave: primary carer leave, partner’s leave, extended leave, and negotiated carer leave.

The individuals or organisations involved in any employment-related negotiations or agreements, for example, an employer and an employee.

Unpaid leave the partner or spouse of someone who is pregnant or taking care of a child under the age of 6 can take. An employee may be eligible to take up to 2 weeks’ unpaid partner’s leave.

Payment for annual holidays at the rate of not less than 8% of the employee’s gross earnings, which is paid with their regular pay instead of getting 4 weeks’ paid annual holidays each year. Some casual and fixed-term employees may get pay-as-you-go holiday pay by agreement.

The process of paying employees. It can also refer to a list of paid employees, or the total amount of money paid to those employees.

A document that an employer may give to an employee at the end of each pay period which includes a breakdown of pay-related information, for example, total wages earned, income tax, overtime and holiday pay. Payslips are not required by law.

An identifiable additional amount that is payable to an employee under their employment agreement for doing certain tasks, working on a particular day or type of day, or working extra hours.

A fine for breaking the law. The amount of the penalty depends on whether the employer is an individual or a company and how serious the breach is.

A tool managers can use to help under-performing employees improve their work performance.

A period of 26 weeks during which an employee who has been on parental leave must be offered a similar job if their job has not been kept open for them.

An action that an employee can take against a current or former employer when they have an employment issue they cannot resolve.

Unpaid leave the primary carer of a child under 6 is entitled to take for up to 26 weeks if they’ve worked for either the 6 or 12-month qualifying period. Primary carer leave can start up to 6 weeks before the expected date of the child’s arrival, or earlier if agreed by the employee and employer.

A period, usually at the beginning of employment, to assess an employee’s suitability for the job. Probation periods are different to trial periods. Employers must follow the usual dismissal procedure to dismiss an employee during a probation period.

An employee or former employee makes a protected disclosure (also known as ‘whistleblowing’) when they report serious wrongdoing that they believe on reasonable grounds is, or has been, occurring in their workplace.

An observed day of national, religious, or cultural significance. Special payment rates and entitlements apply to public holidays.

The formal record of what parties have agreed once they’ve reached a resolution about an employment dispute or problem. To make sure it can be enforced, a record of settlement should be written down and given to Employment Mediation Services to check and sign.

Moving employees with suitable transferable skills into other roles in an organisation to avoid redundancies.

When an employee’s employment is terminated because their position has become surplus to the requirements of the business. Employers must follow a proper and fair process and consider redeployment options before making any positions redundant.

The amount an employee would have been paid if they’d worked on a public holiday, alternative holiday, or on a day they took sick leave, family violence leave or bereavement leave.

When an employee tells their employer they will be leaving their job.

Prevents employees from working in similar businesses in a way that may affect their former employer’s business. Restraint of trade clauses should be reasonable otherwise they may not be enforceable.

Making changes that could affect employees’ jobs. Generally, a restructure occurs when an employer sells, transfers, or contracts out part of, or all its business. Employees in specified sectors (like cleaning or security) have extra rights in a restructure.

A schedule that shows employees’ work shifts over a specific time period.

An employee’s yearly pay, which is normally a fixed amount per year.

A type of fixed-term employment where the employment agreement says that the work will finish at the end of the season. It’s often used in the fruit, vegetable, fishing, and meat industries.

A seasonal job usually describes a situation where an employer employs workers on a fixed-term agreement to complete a job that comes up for a limited time every 'season' (for example, to pick apples). After the work is completed, the employment agreement ends. Also see ‘Fixed-term’.

A temporary arrangement between an employer and employee that allows the employee to work in a different department or company while keeping their original role.

Self-employed people work for themselves and carry out business activity on their own. They include contractors, sole traders and small business owners.

When an employee’s behaviour has undermined or destroyed their employer’s trust in them and impacted the employee’s ability to do their job. Usually, the employee has acted deliberately or so carelessly that it amounts to serious misconduct.

Shift work usually involves working variable hours outside of standard business hours (9am to 5pm). It often includes working rotating rosters, nights, weekends or public holidays.

Paid time away from work that eligible employees can take to care for themselves, their partners or children, or other dependants.

Unpaid leave of up to 10 days that a pregnant employee can take for pregnancy-related reasons, like attending antenatal classes, scans or appointments. Also sometimes used to describe other types of leave that an employer can choose to give an employee, for example, birthday leave or leave in lieu of notice.

The minimum wage that may be paid to employees between 16 and 19 years old who are entering the workforce or completing 40 credits of industry training.

A collective and deliberate refusal by employees to do all or some of their work due to a dispute with their employer. Unions must give written notice of a strike for it to be lawful.

Time an employee takes off work to study or attend courses.

Removing an employee from the workplace for a period of time and for a specific reason. A suspended employee usually receives full pay. It is not the termination of their employment, and they are not on annual holidays or sick leave.

A migrant who is working in New Zealand on a temporary basis.

When an agreement, contract or employment relationship ends.

Time off from work in place of, or instead of, receiving overtime pay for additional hours worked. Also known as ‘TOIL’. Also see ‘Alternative holiday’.

An employee’s pay for the time they worked multiplied by 1.5.

The minimum wage that may be paid to employees who are over 20 years old and completing 60 credits of industry training, including apprentices.

An employer may employ a new employee on a trial period of up to 90 calendar days. If the employer dismisses the employee during the trial period, the employee cannot take a personal grievance for unjustified dismissal. Trial periods must be agreed between the employer and employee in a written employment agreement before the employee starts work.

A period of up to 90 calendar days that an employer can use to assess an employee’s suitability for the job. Trial periods must be agreed between the employer and employee in the employment agreement before the employee starts work.

A situation where there are 3 parties in an employment arrangement: an employer, an employee, and a controlling third party who is responsible for directing the employee's day-to-day work.

An organisation that supports and advocates for employees in the workplace. Unions bargain for collective agreements and help employees with information and advice about work-related issues.

When an employee has been disadvantaged by an action in employment or for reasons that the Employment Relations Authority or Employment Court deem to be unfair.

When an employee is terminated from their job unfairly or for reasons that the Employment Relations Authority or Employment Court deem to be unfair.

A person who is not paid or otherwise rewarded for the work they do and does not expect to be.

Repeated and unreasonable behaviour directed towards a worker or a group of workers that can cause physical or mental harm.

Making changes that could affect employees’ jobs, for example, creating new roles, disestablishing existing roles, or changing employees’ duties. Also see ‘Restructuring’.

Workplace policies and procedures explain the rules and expectations in the workplace.