{"id":204869,"date":"2021-04-27T15:23:53","date_gmt":"2021-04-27T02:23:53","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=204869"},"modified":"2021-04-27T15:23:54","modified_gmt":"2021-04-27T02:23:54","slug":"vulnerable-employees-in-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/vulnerable-employees-in-new-zealand\/","title":{"rendered":"What Are Vulnerable Employees in New Zealand?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">Whether you are preparing to restructure your business, sell, or purchase another business,&nbsp;it pays to be aware of the rules and protections for vulnerable <\/span><a href=\"https:\/\/legalvision.co.nz\/employment\/difference-between-permanent-fixed-term-casual-employee\/\"><span style=\"font-weight: 400\">employees<\/span><\/a><span style=\"font-weight: 400\"> in New Zealand. Certain groups of <\/span><a href=\"https:\/\/legalvision.co.nz\/employment\/withdrawn-resignation-what-can-i-do\/\"><span style=\"font-weight: 400\">employees<\/span><\/a><span style=\"font-weight: 400\"> have certain protections in restructuring situations. T<\/span>his includes including any workers who do catering, laundry or other caretaking work. <span style=\"font-weight: 400\">These groups can elect to transfer to the new employer on the same terms and conditions during a restructure.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">This article will<\/span> outline<span style=\"font-weight: 400\">:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">what groups are vulnerable employees in New Zealand<\/span>; <\/li><li>when their protections kick in; and<\/li><li>the practical implications for your business during a restructuring situation.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Who Are Vulnerable Employees?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">In New Zealand, vulnerable employees have additional protections in employment law when restructures, or other serious changes occur. This is because <\/span>the impact of restructuring is more likely to impact these workers. In particular, it is more<span style=\"font-weight: 400\"> likely to their work will be outsourced.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">There are different groups of vulnerable employees who fit this description in New Zealand. These include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">cleaners and other workers that primarily provide cleaning services;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">caterers that work on food catering or related services;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">workers who do laundry for organisations in the sectors of education, health or residential care;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">orderly workers in the health or residential care sectors; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">workers that provide caretaking services to schools or other organisations in the education sector.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Because t<\/span>hese <span style=\"font-weight: 400\">workers face a greater threat <\/span>of<span style=\"font-weight: 400\"> outsourcing, New Zealand employment law aims to p<\/span>rovide greater<span style=\"font-weight: 400\"> certainty. In practice, these employees have the right to transfer to the new employer if work is outsourced.<\/span> <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">What Protections Are There for Vulnerable Employees?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Protections for vulnerable employees kick in during a few specific situations, including when their work is being<\/span> <span style=\"font-weight: 400\">reformed or\u00a0restructured.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Situations when vulnerable employees have additional protections under employment law include when their employer:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">sells or transfers the business to another owner;<\/span><\/li><li><span style=\"font-weight: 400\">outsources the vulnerable employees\u2019 work to another business to perform;&nbsp;<\/span><\/li><li><span style=\"font-weight: 400\">is a contractor and their contract to perform services is granted to another business; or&nbsp;<\/span><\/li><li><span style=\"font-weight: 400\">the employer is a contractor, and their contract to perform services ends as the business or organisation instead seeks to have the services done in-house.&nbsp;<\/span><\/li><\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and 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This gives vulnerable employees additional protection and certainty in a period that would otherwise see their roles and livelihoods at risk.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Another key protection for vulnerable employees is legal notice requirements. If one of the situations covered above occurs (for instance, if an employer seeks to outsource the work), the employer must tell the vulnerable employee about these restructuring plans at least 20 working days before it takes effect. The other requirement is that the employer must give the vulnerable employees all relevant information about the restructure at least 15 working days before it takes effect. Relevant information includes anything related to the employees\u2019 ability to make an informed decision about whether to transfer to the new employer.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Note that vulnerable employees do not necessarily have to agree to transfer to the new employer. They can seek advice from a lawyer or union advisor and try to request an alternative option such as a redeployment elsewhere in the business.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Vulnerable employees in New Zealand have the ability to switch to a new employer on the same terms and conditions if:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>their current <span style=\"font-weight: 400\">work i<\/span>s contracted out<span style=\"font-weight: 400\">; or <\/span><\/li><li>a restructure means that a new employer is taking over the business (or their part of the business).&nbsp;<\/li><\/ul>\n\n\n\n<p>Outsourcing often happens to work<span style=\"font-weight: 400\"> like cleaning, laundry, a<\/span>nd <span style=\"font-weight: 400\">catering. <\/span>A notice period of 20 days exists for vulnerable workers to give them time to seek advice and decide whether to transfer to the new employer.&nbsp;<\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you want to know more about vulnerable employees and the implications for a restructuring process, contact <\/span><a href=\"https:\/\/legalvision.co.nz\/business-lawyers-lp-new-zealand\"><span style=\"font-weight: 400\">LegalVision\u2019s business lawyers<\/span><\/a><span style=\"font-weight: 400\"> on 0800 005 570 or complete the form on this page.<\/span><\/p>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1619152718707\"><strong class=\"schema-faq-question\"><strong>What are vulnerable employees?<\/strong><\/strong> <p class=\"schema-faq-answer\">These groups include those who do cleaning, catering, laundry and caretaking; they are sometimes called \u2018vulnerable workers\u2019. Vulnerable workers are considered to be at greater risk of losing their job due to a lack of bargaining power and leverage in competitive industries.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1619152744568\"><strong class=\"schema-faq-question\"><strong>What protections do vulnerable employees have?<\/strong><\/strong> <p class=\"schema-faq-answer\">The employees will be able to choose whether to transfer to the new employer on their existing terms and conditions. If they choose to do this, they will become employees of the new employer as if nothing had changed.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1619152758304\"><strong class=\"schema-faq-question\"><strong>What kinds of restructures are included?<\/strong><\/strong> <p class=\"schema-faq-answer\">The most common restructures where vulnerable employees are affected include when an employer sells or transfers the business altogether, or when the employer contracts another business to perform the work that the vulnerable employees were performing.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"ed19fd34f0\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/204869\" \/>            <input value=\"https:\/\/legalvision.co.nz\/business-structures\/vulnerable-employees-in-new-zealand\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Are Vulnerable Employees in New Zealand?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Whether you are preparing to restructure your business, sell, or purchase another business,&nbsp;it pays to be aware of the rules and protections for vulnerable employees in New Zealand. Certain groups of employees have certain protections in restructuring situations. This includes including any workers who do catering, laundry or other caretaking work. These groups can elect<a href=\"https:\/\/legalvision.co.nz\/business-structures\/vulnerable-employees-in-new-zealand\/\">Continue reading <span class=\"sr-only\">&#8220;What Are Vulnerable Employees in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13235,"featured_media":5,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[4,8,14],"tags":[54,232,495,809],"class_list":["post-204869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-structures","category-regulatory-and-compliance","category-corporations","tag-medium-business","tag-restructuring","tag-employee-policy","tag-vulnerable-employees"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Are Vulnerable Employees in New Zealand? | LegalVision<\/title>\n<meta name=\"description\" content=\"What Are Vulnerable Employees in New Zealand? 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Matt previously worked as an employment lawyer in a top-tier firm in New Zealand, and now works at the University of Auckland as a Research Fellow in the Faculty of Law.","sameAs":["anthony.lieu@legalvision.com.au"],"url":"https:\/\/legalvision.co.nz\/author\/mattbartlett\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/business-structures\/vulnerable-employees-in-new-zealand\/#faq-question-1619152718707","name":"What are vulnerable employees?","acceptedAnswer":{"@type":"Answer","text":"These groups include those who do cleaning, catering, laundry and caretaking; they are sometimes called \u2018vulnerable workers\u2019. Vulnerable workers are considered to be at greater risk of losing their job due to a lack of bargaining power and leverage in competitive industries.\u00a0","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/business-structures\/vulnerable-employees-in-new-zealand\/#faq-question-1619152744568","name":"What protections do vulnerable employees have?","acceptedAnswer":{"@type":"Answer","text":"The employees will be able to choose whether to transfer to the new employer on their existing terms and conditions. If they choose to do this, they will become employees of the new employer as if nothing had changed.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/business-structures\/vulnerable-employees-in-new-zealand\/#faq-question-1619152758304","name":"What kinds of restructures are included?","acceptedAnswer":{"@type":"Answer","text":"The most common restructures where vulnerable employees are affected include when an employer sells or transfers the business altogether, or when the employer contracts another business to perform the work that the vulnerable employees were performing.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/204869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13235"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=204869"}],"version-history":[{"count":10,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/204869\/revisions"}],"predecessor-version":[{"id":204996,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/204869\/revisions\/204996"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/5"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=204869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=204869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=204869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}