With the change in Government, comes the customary change to employment laws. Below is a summary of the changes most relevant to the retail sector.

90 day trial period restricted to businesses with less than 20 employees

The statutory 90 day trial period will become a thing of the past for retailers with 20 or more employees, if the Employment Relations Amendment Bill 2018 (the Bill) passes in its current form.

This change will come into effect four months after the Act comes into force. Until then employers are able to continue making use of the trial period.

The trial period has been a useful tool, particularly in the retail sector, where job applicants may have limited experience and it can be tricky to assess customer service and other essential skills until the person has commenced work.

Going forward, retailers that employ over 20 employees will likely revert to using probationary periods in their employment agreements. However, unlike a trial period, the probationary period does not prevent the employee from raising a personal grievance in relation to the dismissal, so a fair and justified process will need to be followed.

Statutory rest and meal breaks

Employees are currently entitled to rest and meal breaks that provide reasonable opportunity to rest, refresh and take care of personal matters. The new Bill will restore statutory rest and meal breaks and remove the current flexibility and ability for businesses to compensate an employee for not taking a break. According to the Bill, breaks will need to be of a prescribed length and at fixed times during a shift, unless otherwise agreed. The Bill states that as far as reasonably practicable, a rest break should be in the middle of a shift. This could have implications for retailers that have multiple staff with similar start and finish times.

Businesses should ensure they are not caught off guard by these amendments and changes to 'the rules of the game'. Now is also a good time to update employment agreements and systems to ensure your business does not fall into any employment law traps.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.