With the recent increase in the minimum rate of KiwiSaver contributions rising to 3% for both employees and employers, it is timely to examine the implications of KiwiSaver from both a financial and legal perspective.

Case Remedy Failure Pay Kiwisaver Contributions

Compensation for the loss of the benefit of an employer’s contribution to an employee’s KiwiSaver account can be claimed but the Employment Relations Authority does not have jurisdiction to order an employer to make KiwiSaver contributions to an employee’s fund. That being the case, when an employer fails to make the required KiwiSaver contribution, employees should bring a personal grievance against the employer and claim a remedy for loss of a benefit rather than ask the Authority to order the employer to make the payment.

Employer Kiwisaver Contribution Employee Minimum Wage

Employers can agree with employees that they will pay KiwiSaver contributions on a “total remuneration” approach whereby their wages are inclusive of the employer’s contribution.

Employers Kiwisaver Contributions Deducted Minimum Wage

The Court of Appeal has dismissed an appeal from an aged care provider that sought to deduct KiwiSaver compulsory employer contributions from the minimum wages it paid its caregivers.

Important Payroll 1 April 2013

For the pay period beginning 1 April 2013 or after, there are some important payroll changes employers need to be aware of. These changes are summarised below:

Volunteer Employee

If you thought working for food or accommodation was volunteering, think again. By law, anyone working in return for food and accommodation is an employee in accordance with section 6 of the Employment Relations Act 2000.

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