‘If SMEs aren’t properly supported, then they eventually get bled dry’
As we move into this new phase of national politics, the world’s eyes are set on PM Jacinda Arden and her new government.
And, for employers, it’s essential to stay vigilant and up to date with potential legal changes.
That’s according to Employsure, New Zealand’s largest workplace relations advisor.
In a recent release, Employsure’s MD Ed Mallett warned employers to keep policy updates at the forefront of their minds.
“While some policies are noble in intention, when it comes to implementation, they may be unnecessarily complex and significantly affect employers, particularly those who have been struggling throughout the year as a result of COVID-19,” added Mallett.
“We’re not arguing against employee benefits going up, that’s an important part of rebuilding the economy. However, they should only go up in line with business confidence, especially small business. If SMEs aren’t properly supported, then they eventually get bled dry and buckle under the financial strain. This ultimately has an effect on employee and job creation in the long run.
“These next few months will be critical for business owners to look at their biggest costs and find ways to minimise their expenses. They will be paying more for their employees, and they need to be ready for it.”
Changes that have been mentioned in the election included;
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- Increasing sick leave for employees from five to 10 days
- Increasing the minimum wage
- Implementing ‘fair pay agreements’
- Strengthening employment legislation
“Employers under financial pressure should use this as a time to prepare themselves through actions like extending opening hours where possible, or cost-cutting measures and redundancies,” advised Mallett.