By PAULA OLIVER
New laws altering holiday entitlements and raising the minimum wage come into effect today - and employers who shirk their responsibilities face harsher penalties.
The heavily debated changes to the Holidays Act include a requirement for employers to pay all staff a minimum of time-and-a-half for work on a
public holiday as well as offer a lieu day.
That includes staff who are paid a salary.
The change means that the employment agreements of all salaried workers will have to be reworded to recognise that the person is being paid time-and-a-half for public holidays.
Employer groups fought hard against the Holidays Act amendments and some have warned that the changes are so complicated they may be ignored.
But employers who do that face stiff fines. Non-compliance could cost an individual a maximum fine of $5000 and a company $10,000.
Employers and Manufacturers' Association (Northern) communications manager Gilbert Peterson said yesterday that the 4000 employers who attended courses on the new laws had a good idea of what they had to do.
"But there's a whole lot more out there who probably have yet to get to terms with it," Peterson said.
"We are keen that employers observe the new law.
"But we certainly sympathise when they don't - if extra costs are landed on them and they don't have enough time to be clear about what they have to do."
Many in the hospitality industry intend to add a surcharge of between 10 and 30 per cent on to bills on public holidays to cover the extra pay requirements.
They say they cannot afford to have the cost coming out of the bottom line - retailers and hospitality businesses operate on some of the tightest margins in business, sometimes under 4 per cent.
Unions have warned that they will be watching closely for employers who try to evade or ignore the laws.
"It would be foolish for any employer to think they can ignore the new laws," said Council of Trade Unions secretary Carol Beaumont. "Unions will be making sure members receive their full legal entitlements."
The minimum adult wage also increases today by 5.9 per cent.
The change will affect nearly 20,000 adults who earn the lowest wages in the country.
The Government said the move was designed to keep minimum wages in proportion with the average wage and to ensure that the minimum wage rate provided an incentive to work for those on benefits.
Holidays Act key points
From today:
* Employers must pay staff a minimum of time-and-a-half for work on a public holiday, as well as offer a lieu day, even if they are on salary.
* The five days allocated each year for sick leave and bereavement leave are separated - giving three days' leave for bereavement and five for sickness.
* Sick leave can be accumulated for up to 15 days if not taken.
* 'Pay as you go' for annual leave entitlements is allowed for employees in a job less than a year - meaning they can forgo leave for extra money.
* Penalties for employers are higher if they break the law.
* The minimum adult wage increases from $8.50 an hour to $9.
* The minimum youth wage increases from $6.80 to $7.20.
By PAULA OLIVER
New laws altering holiday entitlements and raising the minimum wage come into effect today - and employers who shirk their responsibilities face harsher penalties.
The heavily debated changes to the Holidays Act include a requirement for employers to pay all staff a minimum of time-and-a-half for work on a
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