In Short
- Health and safety: Franchisees are responsible for ensuring a safe workplace, including hazard management and emergency procedures.
- Employment obligations: Franchisees must provide compliant employment agreements, pay at least the minimum wage, and offer proper leave entitlements.
- Record-keeping: Franchisees must maintain accurate records of work hours, wages, and employee entitlements for at least six years.
Tips for Businesses
Ensure all employment agreements comply with New Zealand law, pay at least the minimum wage, and regularly update training on health and safety protocols. Keep accurate records of employee hours and entitlements, and take steps to prevent and address workplace discrimination and harassment.
As a franchisee in New Zealand, it is essential to comply with workplace obligations to ensure that you provide a safe and healthy workplace for your employees. If you fail to comply, you may face penalties, fines and even legal disputes. This article will take you through the key things to know about the workplace obligations of franchisees in New Zealand.
What are Workplace Obligations?
Workplace obligations refer to the legal requirements employers and employees must follow. These obligations cover various areas, such as:
- health and safety;
- minimum wage;
- employment agreements;
- leave entitlements; and
- discrimination and harassment.
Failure to comply with your obligations may result in serious consequences, including major fines and legal action being taken against you.
Which Workplace Obligations Do I Need to Follow?
As a franchisee, you will be in charge of managing your employees. As a result, you have a responsibility to comply with workplace obligations to ensure that your employees are provided with a safe and healthy workplace. One way of doing this is taking reasonable and practicable measures to eliminate or minimise risks to health and safety in your workplace. Below, we outline your key workplace obligations in more detail.
1. Health and Safety
Franchisees are legally responsible for providing a safe and healthy workplace for their employees. This includes:
- identifying and managing workplace hazards
- providing appropriate safety equipment; and
- implementing emergency procedures.
As a franchisee, you must ensure that you provide a workplace free from hazards and take appropriate measures to prevent accidents and injuries.
2. Employment Agreements
Franchisees must provide their employees with employment agreements that comply with New Zealand employment law. The agreements should include terms and conditions of employment such as working hours, wages and entitlements.
As a franchisee, you must ensure that you provide your employees with an employment agreement that complies with New Zealand employment law and clearly outlines their employment terms and conditions.
3. Minimum Wage
Franchisees must pay their employees at least the minimum wage rate set by the New Zealand Government. The minimum wage rate is reviewed annually and may vary depending on the employee’s age and experience. It is your responsibility to ensure that you avoid underpaying your employees, paying them at least the minimum wage rate and keeping up to date with any legal changes.
4. Leave Entitlements
Franchisees must provide their employees with the appropriate leave entitlements as set out in New Zealand employment law, such as the Employment Relations Act 2000. This includes:
- annual leave;
- sick leave;
- bereavement leave; and
- parental leave.
As a franchisee, you must ensure that you provide your employees with the appropriate leave entitlements and keep accurate records of their entitlements.
5. Discrimination and Harassment
Franchisees must comply with New Zealand’s anti-discrimination and harassment laws. This includes providing a workplace free from discrimination and harassment and taking appropriate action if incidents occur. Accordingly, you must ensure that you provide a workplace that is free from discrimination and harassment and that you take appropriate action if any such incidents do arise.
6. Record-Keeping
You must keep accurate records of your employees’ hours of work, wages, and entitlements. These records must be kept for at least six years and be readily available for inspection by the New Zealand Government.
7. Tax and Kiwisaver
Franchisees must comply with New Zealand tax laws and contribute to their employees’ KiwiSaver, if they opt in. Therefore, your tax responsibilities include:
- registering for and paying the appropriate taxes, such as income tax and GST; and
- contributing to your employees’ superannuation funds, such as KiwiSaver.
Is My Franchisor Liable For My Workplace Obligations?
As a franchisee, you are responsible for complying with your workplace obligations. However, you may wonder whether your franchisor is liable for any non-compliance.
Generally, franchisors are not liable for their franchisees’ workplace obligations as franchisees are considered independent business owners. The franchisor’s role is to provide support and guidance, but they do not have direct control over your day-to-day operations. These types of terms may be outlined in your franchise agreement with the franchisor.
However, franchisors may still be held liable if they provide inadequate training or support, leading to non-compliance with workplace obligations. Therefore, it is important to seek legal advice if you have concerns about your franchisor’s liability for your workplace obligations.
Help new employees get off to a great start with our free New Employee Onboarding Checklist.
Key Takeaways
Engaging in franchising as a franchisee can be an exciting business opportunity. However, it is crucial that franchise businesses understand key workplace obligations. Franchisors can provide guidance and support, but ultimately, franchisees are responsible for complying with workplace obligations. As a franchisee, some of the major workplace obligations you must be aware of include:
- health and safety;
- employment agreements;
- minimum wage;
- leave entitlements;
- discrimination and harassment;
- record-keeping; and
- tax and superannuation.
If you are unsure about your workplace obligations or have concerns about your franchisor’s liability, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.
Frequently Asked Questions
Generally, franchisors are not liable for your workplace obligations as you are considered an independent business owner. However, franchisors may still be held liable if they provide inadequate training or support that leads to non-compliance with workplace obligations.
Workplace obligations are legal requirements that both employers and employees must follow in the workplace, covering areas such as health and safety, minimum wage, employment agreements, leave entitlements and ensuring a safe workplace, free from discrimination and harassment.
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