Retail NZ says amendments to the Employment Relations Act will increase flexibility for the retail sector. The changes will also adjust the employment framework.

Carolyn Young, CEO of Retail NZ, said the changes clarify the process for personal grievance claims. Under the amendments, employees found to have engaged in serious misconduct will not be eligible for financial remedies.

“This legislation will provide clearer rules on personal grievance remedies, ensuring employees’ serious misconduct is not financially rewarded,” Young said. “The removal of the 30-day rule will give employers and workers the freedom to determine employment terms from the outset.”

The amendments also raise the income threshold for exemption from unjustified dismissal claims to $200,000. Young said the change ensures the provision applies to employees with earnings above the threshold and bargaining power.

Retail NZ said the reforms will affect small retailers that face costs and risk when dealing with employment processes. The changes rebalance risk and establish a framework for managing employment relationships.

“We anticipate these reforms will give retailers a clearer and more workable framework for managing employment relationships, enabling them to make commercial decisions with greater certainty,” said Paul Gillespie, principal employment lawyer at Ford Sumner Lawyers.

“Where an employee’s behaviour meets the threshold for serious misconduct, compensatory remedies will no longer be available,” he added. “The removal of the 30-day rule means employers are no longer required to offer new employees the same terms as a collective employment agreement for that period.”

Retail NZ said it will continue to work with relevant agencies on the implementation of the law. The organisation will also support members as the changes take effect.

Retail NZ has also commented on other employment law changes, including the new safety bill.