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Zero-hour contracts and availability clauses

Your rights and protections around “zero-hour” contracts and availability clauses

Employment Relations Act 2000, ss 67D-67F

Workers have some legal protections against arrangements like “zero-hour” contracts – that’s where you have no guaranteed hours of work but must be available for whatever hours your employer offers, whenever they offer them.

Your employment agreement can include a clause giving your employer some freedom about whether they make work available to you and requiring you to accept the work, but only if:

  • your agreement gives you some guaranteed hours
  • you’re paid reasonable compensation (see below) for making yourself available above those guaranteed hours, and
  • your employer has genuine reasons based on reasonable grounds for including this kind of availability clause.

If there’s not an availability clause in your agreement that meets those requirements, you’re free to turn down any work you’re offered above your guaranteed hours. If you do turn the work down, your employer can’t fire you or disadvantage you in any way.

Employment Relations Act 2000, ss 65(4), 67C

Note: If you and your boss have verbally agreed about what your hours will be, your boss must make sure this is stated in your written employment agreement. This includes where you’ve agreed on a number of guaranteed hours, or on the days of the week you’ll work, or on start and finish times, or on any flexibility about those issues. If your boss doesn’t include this in your written agreement, you (or a labour inspector) can take them to the Employment Relations Authority, who can then order them to pay a monetary penalty.

What’s “reasonable compensation” for agreeing to an availability clause?

Employment Relations Act 2000, s 67D(6)

Relevant factors for what will be reasonable compensation for making yourself available above your guaranteed hours include:

  • how many hours you have to make yourself available for
  • how that number compares to the number of guaranteed hours
  • any restrictions placed on you – for example, if you can’t drink while you’re on call, or if you have to stay local rather than just being available by phone
  • your regular pay or salary.

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Employment: Conditions & protections

Where to go for more support

Community Law

www.communitylaw.org.nz

Your local Community Law Centre can provide free initial legal advice and, depending on your situation, may also be able to provide ongoing support.

“Pregnancy Rights: Your legal options during and after pregnancy” (booklet)

This booklet contains practical answers to questions about pregnancy and the law, and includes information on sexual health and consent, options after a positive pregnancy test, healthcare, education, housing and more.

Order hard copies from:

Community Law Wellington and Hutt Valley

Phone (04) 499 2928

Email: publications@wclc.org.nz or visit www.communitylaw.org.nz to buy a copy or access free online

Ministry of Business, Innovation & Employment

www.employment.govt.nz

Free phone 0800 20 90 20, for general enquiries about employment relations, pay and holidays.

The Employment website of the Ministry of Business, Innovation & Employment publishes a range of publications on employment relations and minimum rights at work.

Labour inspectors

Labour inspectors monitor and enforce minimum employment conditions. To refer a problem to a labour inspector, you contact the Ministry of Business, Innovation & Employment on:

Free phone 0800 20 90 20

Worksafe New Zealand, Mahi Haumaru Aotearoa

www.worksafe.govt.nz

Free phone: 0800 030 040

Worksafe New Zealand’s website has a range of information and publications on workplace health and safety issues.

Parental leave payments

www.ird.govt.nz/topics/paid-parental-leave

The Inland Revenue website has information on parental leave payments.

Whistle-blowing (“Protected disclosures” by employees)

www.ombudsman.govt.nz

Free phone: 0800 802 602
Email: info@ombudsman.parliament.nz

The Office of the Ombudsman provides information and guidance to employees about making a protected disclosure.

New Zealand Council of Trade Unions, Te Kauae Kaimahi

www.union.org.nz

Phone: (04) 385 1334
Email: info@nzctu.org.nz

The NZCTU is the umbrella body for affiliated unions covering every job and industry in New Zealand. It can provide information about which union may cover the type of work you do.

Also available as a book

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