Zero Hour Contracts
Availability provisions were in the headlines last year following the reaction of workers to what were termed “zero hour contracts”. These were contracts that did not guarantee any weekly hours for workers, but workers were prevented from working elsewhere.
The law was amended to prevent this and now we see its first application in the Courts. Unfortunately the Employment Court decision has not provided all the answers that we would have liked, but there are some useful points to take away from it.
Can I take clients with me?
Employers in businesses that are dependent upon good relationships with clients in a competitive industry often wish to include restraints in their employee’s employment agreement.
There are two common types of restraints that we often see. These are:
- Restraint of trade: where the employee is prohibited from working in the same industry as the employer within a certain distance of the employer’s premises, for a certain amount of time after employment ends.
- Non-solicitation: where the employee is prohibited from ‘soliciting’ clients of their former employer, for a certain period of time after employment ends.
This article focuses on what a non-solicitation clause means in practical terms.
A costly mis-steak?
It almost sounds like something out of Ramsay’s Kitchen Nightmares. Mr H was employed as a chef at a family run hotel. It was owned by Mr and Mrs D, and their daughter, S, and S’s partner T also helped manage the hotel. T often helped in the kitchen.
A Lesson on Suspension
The following decision is a good reminder that Employers need to ensure they follow their own policies and procedures when dealing with Employees.
A Court of Appeal decision involved a bus company (“R”) who suspended an employee (“M”) after he was charged with alleged sexual assault.
Restructuring - genuine proposals must be considered
Restructuring is one area where employers really do need good advice as the following precautionary tale demonstrates.
W had been at Opus for 35 years, working in the HR department. During 2014 she was advised that Opus was beginning a consultation process, with the view of restructuring the HR services in NZ. At the time W was the HR coordinator, which involved handling leave applications, monthly reporting requirements and inducting any new employees. There were four members of the team, with one member - Ms D - being away on parental leave at the time of the consultation.
