Payment for Travel Time to Work in New Zealand
In New Zealand, the question of whether travel time to work is paid depends on the nature of the travel and the terms of the employment agreement. Generally, commuting from an employee's home to their regular place of work is not considered work time and is therefore unpaid.
Commuting to Your Usual Workplace
Travel from an employee's home to their regular place of business is typically seen as a private cost and responsibility of the employee. This travel time is generally not paid by the employer [Source: Employment Relations Act 2000, s 63(1)(a) - implicitly, as such travel is not usually part of the "work to be performed" defined in agreements].
When Travel Time May Be Considered Work Time
There are specific circumstances where travel time may be considered work time and must be paid:
- Travel between different workplaces: If an employee is required to travel from one work site to another during the course of their working day, this travel time typically falls within the scope of their work duties as defined in their employment agreement and should be paid [Source: Employment Relations Act 2000, s 63(1)(a)].
- Travel that is an inherent part of the job: For certain roles, travel is an essential component of the job itself. Examples include mobile service technicians, sales representatives who visit clients, or delivery drivers. In such cases, the travel time required to perform these duties is considered work time and must be paid [Source: Employment Relations Act 2000, s 63(1)(a)].
- Employer-directed travel beyond usual commute or hours: If an employer requires an employee to travel to a location other than their usual workplace, or outside their normal working hours, this travel time may be considered work time. This is particularly true if the employee is under the employer's control during the travel or if the travel significantly extends their working day beyond their normal commute [Source: Employment Relations Act 2000, s 63(1)(a)].
- Performing duties while travelling: If an employee is required to perform work duties, such as taking calls, checking emails, or preparing reports, while travelling, that time is considered work time and must be paid [Source: Employment Relations Act 2000, s 63(1)(a)].
The Role of Employment Agreements
Employment agreements are crucial in defining what constitutes work time, including provisions for travel. An individual employment agreement (IEA) is a legally binding contract between an employer and a single employee outlining the terms and conditions of their employment [Source: Employment Relations Act 2000, s 63]. A collective employment agreement (CEA) is a legally binding contract negotiated between an employer and a union, covering the terms and conditions of employment for union members employed by that employer [Source: Employment Relations Act 2000, s 55].
These agreements should explicitly detail any payment for travel time, travel allowances, or reimbursement for travel-related expenses. Both employers and employees have an obligation to deal with each other in good faith, meaning openly, honestly, and without misleading or deceiving each other, when negotiating and interpreting these agreements [Source: Employment Relations Act 2000, s 4].
Minimum Wage Obligations
If travel time is considered work time under any of the circumstances described above, the employee must be paid at least the minimum wage for that time. The minimum wage is the lowest hourly rate an employer can legally pay an employee for the time they spend working [Source: Minimum Wage Act 1983, s 4].
Definitions
- Individual employment agreement (IEA): A legally binding contract between an employer and an individual employee outlining the terms and conditions of their employment [Source: Employment Relations Act 2000, s 63].
- Collective employment agreement (CEA): A legally binding contract negotiated between an employer and a union, covering the terms and conditions of employment for union members employed by that employer [Source: Employment Relations Act 2000, s 55].
- Minimum wage: The lowest hourly rate an employer can legally pay an employee for the time they spend working [Source: Minimum Wage Act 1983, s 4].
- Good faith: A legal principle requiring employers and employees to deal with each other openly, honestly, and without misleading or deceiving each other [Source: Employment Relations Act 2000, s 4].
When to Seek Independent Legal Advice
If there is uncertainty about whether specific travel time should be paid, or if there is a dispute regarding travel time compensation, it is advisable for individuals to seek independent legal advice. Information and assistance can be obtained from official bodies like Employment New Zealand or Community Law Centres.