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New Zealand - Compensation & Benefit Legislation

CAPITAL

Wellington

 

CLIMATE

Temperate weather with sharp regional contrasts.

 

LANGUAGES

English (official) and Maori.

 

LEGAL SYSTEM

Based on English law, with special land legislation and land courts for Maoris; accepts compulsory ICJ jurisdiction, with reservations.

 

CURRENCY

New Zealand Dollars (1 USD = 2.32256 NZD as of March 15, 2002 )

 

NEW ZEALAND - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

NEW ZEALAND - EMBASSY/CONSULATES

U.S. Embassy at Wellington

29 Fitzherbert Terrace

Thorndon, Wellington

New Zealand

P.O. Box 1190

APO AP 96531-1001

Thorndon, Wellington

New Zealand

Telephone: [64] (4) 462-6000

Fax: [64] (4) 478-1701

http://usembassy.org.nz

 

U.S. Consulate in Auckland

3rd Floor, Ciribank Building

23 Customs Street

Auckland, New Zealand

Telephone: [64] (9) 303-2724

Fax: [64] (9) 366-0870

 

Embassy of New Zealand at Washington D.C.

37 Observatory Circle

Washington D.C. 20008

Telephone: (202) 328-4800

Fax: (202) 667-5227
E-mail: nz@nzemb.org

http://www.nzemb.org/

 

NEW ZEALAND - HOLIDAYS

 

NEW ZEALAND - LEAVE

Annual Leave: Minimum three weeks paid vacation each year.

 

Maternity Leave: 14 weeks unpaid leave.

 

NEW ZEALAND - MINIMUM AGE

Department of Labor inspectors effectively enforce a ban on the employment of children under the age of 15 years in manufacturing, mining, and forestry. Children under the age of 16 may not work between the hours of 10 p.m. and 6 a.m.

 

By law children enrolled in school may not be employed, even outside school hours, if such employment would interfere with their education.

 

(Section 6.d. Acceptable Conditions of Work, New Zealand – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

NEW ZEALAND - MINIMUM REMUNERATION

In 2000 the Government mandated an hourly minimum wage of approximately $3.20 ($NZ7.70) and lowered the minimum age of eligibility for this wage to cover workers ages 18 to 20.

 

The youth minimum wage of approximately $2.85 ($NZ6.15) applies to workers of ages 16 to 17. This rate reflects an increase in the youth minimum wage that went into effect March 2002.

 

(Section 6.e. Acceptable Conditions of Work, New Zealand – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

 

NEW ZEALAND - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

NEW ZEALAND - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

Workers have the right to establish and join organizations of their own choosing. The principal labor organization is the New Zealand Council of Trade Unions, a federation that includes unions representing various trades and locations. In August 2000, the Council of Trade Unions merged with the second-largest labor federation, the New Zealand Trade Union Federation. As a result, nearly all unionized workers are members of the Council of Trade Unions. A few small, independent labor unions also exist. Unions represent fewer than 20 percent of all wage earners.

 

Labor organization is rudimentary in the territory of Tokelau (population 1,500) and in the Freely Associated State of Niue (population 1,700). In the more developed Associated State of the Cook Islands (population 19,000), most workers in the public sector, the major employer, belong to the Cook Islands Workers' Association, an independent local union. Industrial relations in the Cook Islands are governed by a simplified version of national legislation.

 

The law protects unions from governmental interference, suspension, and dissolution. Unions influence legislation and government policy. Some unions are affiliated with the Labor Party; others operate independently of political parties; all are free to support parties whose policies they favor.

 

Unions often exercise the right to strike. Significant limitations on the right to strike were eliminated when the Employment Relations Act (ERA) replaced the Employment Contracts Act in October 2000; unions are no longer limited to strikes related to the negotiation of a collective contract and may strike in pursuit of multiemployer contracts across an entire economic sector.

 

In the 12 months that ended in June there were 33 work stoppages, involving approximately 5,265 workers and the loss of approximately $1.216 million ($NZ2.897 million) in wages and salaries.

 

Under the law, "sworn police officers," that is, all uniformed and plainclothes police but excluding clerical and support staff, are barred from striking or taking any form of industrial action. However, police have freedom of association and the right to organize and to bargain collectively. Disputes that cannot be settled by negotiation between the Police Association and management are subject to compulsory, final-offer arbitration. Other than the police and armed forces, essential service employees such as prison workers are permitted to strike.

 

The Freedom of Association Committee of the ILO ruled in 1994 that the Employment Contracts Act of 1991 does not promote collective bargaining and limits the right of freedom of association and the right to strike in a manner inconsistent with ILO conventions. The Government contends that the ERA of 2000 is consistent with ILO conventions. Discussions with the ILO to confirm this understanding continued at year's end. Sympathy strikes, secondary strikes, and strikes over social or political causes are illegal. Unions may affiliate internationally. The New Zealand Council of Trade Unions is affiliated with the International Confederation of Free Trade Unions.

 

b. The Right to Organize and Bargain Collectively

 

The law provides for the right of workers to organize and contract collectively, and this right is observed in practice. In 2000 the Government changed the law governing industrial relations significantly. It repealed the Employment Contracts Act of 1991 and replaced it with the Employment Relations Act. The ERA promotes collective bargaining, strengthens unions, and requires that parties to an employment agreement bargain in good faith to achieve either a collective or individual employment agreement. The act also promotes mediation and attempts to reduce the need for judicial intervention. The law prohibits uniformed members of the armed forces from organizing unions and bargaining collectively; however, other than police and armed forces personnel, public services employees may organize and strike.

 

Unions represent fewer than 20 percent of all wage earners. Under the ERA, employment relationships are based on contracts. Individual employees and employers may choose to conduct negotiations for employment contracts on their own behalf, or they may authorize any other person or organization to do so on their behalf. Although choosing a union is entirely voluntary, unions have remained the most common agents used by workers to negotiate with employers. Employers must recognize a representative authorized by an employee or employees.

 

The Government does not control mediation and arbitration procedures. The ERA strongly encourages mediation and requires that the majority of employment disputes first proceed through mediation. It also established an Employment Relations Authority as an investigative body to establish the facts of an employment relationship dispute and to make a determination according to the merits of the case. There is also an employment court with exclusive jurisdiction over employment matters. Appeals from the Employment Court to the Court of Appeal are possible. Firing an employee for union activities is grounds for a finding of unjustified dismissal and may result in reinstatement and financial compensation.

 

The law prohibits antiunion discrimination against members and organizers. In one case, the courts fined a major company for having union organizers arrested for trespass when the organizers were conducting a labor compliance survey at the company facility.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The law prohibits forced or compulsory labor, including forced and bonded labor by children; and there were no reports that such practices occurred. Inspection and legal penalties ensure respect for provisions against forced labor. There were no reports of the involuntary detention of women involved in prostitution or the trafficking of women for prostitution during the year (see Section 6.f.). In April 2000, the Government convicted and fined the operators of a factory in Auckland in which workers had been exploited; seven Thai women escaped slave labor conditions in October 1999 (see Section 6.f.). One formerly trafficked woman won compensation in Thailand, outside the court system, from a trafficker (see Section 6.f.). The victim's receipt of the compensation was verified.

 

Trafficking in women and children appears no longer to be a problem (see Section 6.f.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

Department of Labor inspectors effectively enforce a ban on the employment of children under the age of 15 years in manufacturing, mining, and forestry. Children under the age of 16 may not work between the hours of 10 p.m. and 6 a.m. By law children enrolled in school may not be employed, even outside school hours, if such employment would interfere with their education.

 

On June 14, the Government ratified ILO Convention 182 on the worst forms of child labor.

 

The Government prohibits forced and bonded child labor and enforces this prohibition effectively; although trafficking in children has been a problem, there were no cases during the year (see Sections 6.c. and 6.f.).

 

e. Acceptable Conditions of Work

 

A 40-hour workweek is traditional. There are legal limits regarding hours worked; for example, professional drivers must have a 24-hour rest period after an 11-hour day; there is premium pay for overtime work. While the law does not provide specifically for a 24-hour rest period weekly, management and labor accept the practice, and it is the norm. The law provides for a minimum 3-week annual paid vacation and 11 paid public holidays. In 2000 the Government mandated an hourly minimum wage of approximately $3.20 ($NZ7.70) and lowered the minimum age of eligibility for this wage to cover workers ages 18 to 20. Combined with other regularly provided entitlements and welfare benefits for low-income earners, this wage generally is adequate to provide a decent standard of living for a worker and family. The minimum wage for younger workers (ages 16 to 17) is 60 percent of the adult minimum. A majority of the work force earned more than the minimum wage. The youth minimum wage of approximately $2.26 ($NZ5.40) applies to workers of ages 16 to 17. This rate is scheduled to rise to $2.85 ($NZ6.15) in March 2002.

 

Extensive laws and regulations govern health and safety issues. Under these rules, employers are obliged to provide a safe and healthy work environment, and employees are responsible for their own safety and health, as well as ensuring that their actions do not harm others. As a result of union criticism, the law is under review by Parliament; however, at year's end there had been no action resulting from the review. Workers have the legal right to strike over health and safety issues. Unions, and members of the general public, may file safety complaints on behalf of workers. Department of Labor inspectors effectively enforce safety and health rules, and they have the power to shut down equipment if necessary. The Department of Labor standard is to investigate reports of unsafe or unhealthy working conditions within 24 hours of notification. Inspectors may issue notices of deficiencies and bring prosecutorial action to enforce workplace safety. Workers have the right to withdraw from a dangerous work situation without jeopardy to continued employment.

 

Labor laws are applied to foreign workers in the same manner as they are to citizens.

 

f. Trafficking in Persons

 

The law does not address trafficking in persons specifically, and the applicable related crime, aiding and abetting the breach of immigration regulations, carries relatively light penalties; however, there were no reports that persons were trafficked to, from, or within the country during the year. Laws against child sexual exploitation and slavery carry penalties of up to 14 years in prison and, in recent years, have been used to prosecute citizens for trafficking in women and girls.

 

There were no incidents of trafficking in children for sexual purposes documented during the year.

 

Trafficking in women and children (particularly from Thailand) to work in the sex industry has been a problem. There were several credible reports that women and children were trafficked into the country during previous years; however, there were no such reports during the year.

 

NEW ZEALAND - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

NEW ZEALAND - STANDARD WORKWEEK

A 40-hour workweek is traditional. There are legal limits regarding hours worked; for example, professional drivers must have a 24-hour rest period after an 11-hour day; there is premium pay for overtime work.

 

While the law does not provide specifically for a 24-hour rest period weekly, management and labor accept the practice, and it is the norm.

 

(Section 6.e. Acceptable Conditions of Work, New Zealand – Report of Human Rights Practices, 2001, U.S. Department of State.)