This week, Parliament passed a change to the Employment Relations Act 2000, reintroducing employers’ right to make pay deductions during partial strikes. A partial strike occurs where union members still attend work, but refuse to undertake parts of their job.
This returns the law to what it was prior to partial pay deductions being removed by the previous government.
Key takeaways for employers:
- Employers can respond to partial strikes by:
- Reducing an employee’s pay proportionately (using a specified method based on identifying the work the employee won’t be performing because of the strike); or
- Deducting 10% of their wages.
- Employers need to provide employees with written notification before making pay deductions.
- A union must advise an employer as soon as practicable if it believes a pay deduction is incorrectly applied.
If you would like further details on this change and how it may affect your business, please contact a member of our employment law team.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
