Getting Paid for Mandatory Training in New Zealand
When an employer requires an employee to attend training, it is generally considered 'work' under New Zealand employment law and, as such, must be paid. This applies irrespective of whether the training occurs during or outside an employee's usual working hours. The underlying principle is that the employee is under the employer's direction and control and the training is for the employer's benefit.
What Constitutes 'Work'?
If an employer makes attendance at a training course or session compulsory, the time spent by the employee attending that training is typically considered time spent working. During such training, the employee is fulfilling a requirement of their employment and is subject to the employer's control. The law requires payment for 'work done' by a worker [Source: Minimum Wage Act 1983, s 4].
A worker is defined as any person of any age employed, whether exclusively or not, in any capacity, for hire or reward [Source: Minimum Wage Act 1983, s 2]. An employer includes the Crown and any body corporate or unincorporate, and the legal personal representative of a deceased employer [Source: Minimum Wage Act 1983, s 2].
Minimum Wage Requirements
All work performed by an employee, including time spent on mandatory training, must be paid at a rate that is at least the current minimum wage [Source: Minimum Wage Act 1983, s 4]. The minimum wage is the lowest hourly rate an employer can legally pay a worker for their labour [Source: Minimum Wage Act 1983, s 4]. This ensures that employees are fairly compensated for all time spent under the employer's direction for work-related activities.
Employment Agreements and Good Faith
Every employment relationship in New Zealand is based on an employment agreement, which is a contract between an employer and an employee that sets out the terms and conditions of their employment [Source: Employment Relations Act 2000, s 5]. Employment agreements must be in writing and include details such as the names of the parties, a description of the work to be performed, and arrangements relating to hours of work [Source: Employment Relations Act 2000, s 6].
Employers and employees must deal with each other in good faith [Source: Employment Relations Act 2000, s 4]. This duty of good faith requires employers to be active and constructive in establishing and maintaining a productive employment relationship. Requiring an employee to attend mandatory training without pay, when it constitutes work, would likely be contrary to this duty.
Training Outside Normal Working Hours
If an employer requires an employee to attend training outside of their usual working hours, those hours are still considered 'work' and must be paid. The employee must be compensated for this time at a rate that is at least the minimum wage. Any specific provisions regarding payment for work outside normal hours, such as overtime rates, would depend on the terms specified within the employee's individual employment agreement or a relevant collective agreement.
When to Seek Independent Legal Advice
If there is uncertainty about whether specific training constitutes paid work, or if an employee believes they have not been correctly compensated for mandatory training, it is advisable to seek independent legal advice. Information and assistance can be obtained from official bodies such as Employment New Zealand or by consulting a lawyer or a Community Law Centre for free initial advice and support.