COVID-19 FARM EMPLOYER FAQ - FEDS INFORMATION SHEET - NZ Thoroughbred Breeders

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1      COVID-19 FAQ
    FEDS INFORMATION SHEET

    COVID-19
    FARM EMPLOYER FAQ
    Key facts
    ƒ The situation with COVID-19 is fast-moving and therefore there is the potential for the information provided to be
      superseded as the situation develops. We recommend individuals take professional advice on their own individual
      circumstances, and review the updated information available from government websites including:
       - www.health.govt.nz – Ministry of Health website;
       - www.safetravel.govt.nz – Ministry of Foreign Affairs and Trade website
       - www.winz.govt.nz – financial support
       - www.employment.govt.nz – information for employers and workers
       - www.privacy.org.nz – information on disclosure of personal information

    ƒ Business continuity: The COVID-19 Leave Payment Scheme is designed to help people who should self-isolate, but
      otherwise might be deterred because of financial reasons (e.g. potential loss of employment or being required to
      take leave without pay). The COVID-19 Wage Subsidy Scheme has been developed to help businesses and affected
      workers in the short-term, as they adjust to the initial impact of COVID-19. Further information is available at www.
      winz.govt.nz.

    ƒ Financial support: New Zealanders who require emergency financial assistance because of COVID-19 are
      encouraged to contact Work & Income by telephone 0800 559 009. This includes employers. Work & Income has
      rapid response teams throughout the country that can provide support and advice, including where employers need
      to consider redundancies or reducing peoples’ hours.

    Key messages for employers:
    1 Key employer statutory (legal) obligations will likely arise under:
        a. Health and Safety at Work Act 2015 (HSWA) (providing a safe workplace);
        b. Employment Relations Act 2000 (ERA) (the duty of good faith); and
        c. Holidays Act 2003 (HA03) (leave entitlements).

    2. Providing a safe workplace and protecting workers from potential harm arising from COVID-19 must be a primary
       consideration. Employers must take all reasonably practicable steps to avoid the risk of harm to workers, which
       includes potential exposure to COVID-19.

    3. Effective communication with workers – particularly around issues that may adversely affect them – remains a
       key good faith obligation. This includes providing updates on the potential impact of COVID-19 on an employer’s
       business/operations, as well any specific matters that will affect individual employees.

    4. Although employers should do what they can to accommodate workers affected by COVID-19 (see below), if a person
       is not ready, willing, and able to work, then an employer is not obligated to pay them (assuming they have no relevant
       leave entitlements). However, an employer should explore their eligibility to apply for and offer paid leave to affected
       employees under the COVID-19 Leave Payment Scheme.

       Federated Farmers of New Zealand                                                                    (19 March 2020)
2   COVID-19 FAQ
    Frequently asked questions

     Issue                                Advice
     My employee is sick with             -   The employee should not attend work.
     COVID-19.
                                          -   The employer may request medical confirmation of the employee’s
     In this example, an employee has         diagnosis.
     notified the employer they are       -   The employer should request medical clearance before the employee
     sick with COVID-19.                      returns to work, and should take precautions against contamination
                                              (see www.health.govt.nz).
                                          -   The employer should liaise with the employee regarding leave
                                              entitlements and try to agree which, if any, should be used (employee
                                              should generally be able to take any sick leave or annual holidays
                                              entitlement, but cannot be directed by the employer to use
                                              entitlements). If an employee has insufficient leave balance to cover
                                              their time off, an employer could consider offering sick leave or annual
                                              leave in advance.
                                          -   If the employee does not have leave entitlements (or doesn’t have
                                              sufficient entitlements), the employer should consider whether paid
                                              discretionary leave is a reasonable alternative. Discretionary leave
                                              is not a legal requirement, but rather paid time off provided solely at
                                              the discretion of the employer which is not deducted from any leave
                                              balances. These payments would ordinarily paid in a similar fashion to
                                              annual leave, at the employee’s normally pay rate.
                                          -   If the employee’s condition improves (within the period of self- isolation
                                              and/or treatment), and the employee is willing to work remotely, the
                                              employer should consider whether remote work or alternative working
                                              arrangements are possible. It should discuss this with the employee,
                                              and potentially seek medical clearance before remote/alternative work
                                              commences to ensure the employer is not working while unwell.
                                          -   The parties should remain responsive and communicative throughout
                                              (i.e., the employer should communicate with the employee and check
                                              up on the employee from time to time and inquire into condition and
                                              prognosis).
                                          -   Employers with employees who cannot work due to COVID-19 and/or
                                              needing to self-isolate may be to apply for government support to pay
                                              these employees while they are not working under the COVID-19 Leave
                                              Payment Scheme.

     My employee has been advised to      -   The employee should not attend work and should have notified the
     self-isolate, but may not be sick.       employer they have been advised to self-isolate under public health
                                              guidance.
     In this example, an employee
     has been advised to self- isolate    -   If the employee is not sick and remote work is feasible, the employer
     because of public health                 should consider alternative working arrangements to enable the
     guidance.                                employee to continue working and receiving an income.
                                          -   NOTE: based on current public health guidance, “self-isolation” means
                                              avoiding close contact with others. It is conceivable an employee
                                              who is not sick (and willing to work) could still work while self-
                                              isolating (depending on the nature of the work), provided appropriate
                                              precautions were taken. Whether or not working while self-isolated is
                                              feasible will depend on the particular circumstances each case, and
                                              professional advice should be taken.

    Federated Farmers of New Zealand                                                                     (19 March 2020)
3   COVID-19 FAQ

                                         -   If alternative working arrangements are not possible, the employer and
                                             employee should agree how periods of leave will be treated (paid or
                                             unpaid). If an employee has insufficient leave available, an employer
                                             may consider offering annual or sick leave in advance.
                                         -   If the employee does not have leave entitlements, the employer should
                                             consider whether paid discretionary leave is a reasonable alternative.
                                         -   If an employee is not ready, willing, and able to work for reasons
                                             outside of the employer’s control – there is no legal obligation on the
                                             employer to pay them in addition to their ordinary leave entitlements.
                                         -   However, an employer should explore their eligibility to apply for and
                                             offer paid leave to affected employees under the COVID- 19 Leave
                                             Payment Scheme. If an employer is able to access support under this
                                             scheme, then we think this should be offered to employees.
                                         -   The parties should remain responsive and communicative (i.e., the
                                             employer should check up on the employee from time to time to check
                                             prognosis and potential return).

     My employee wants to self-          -   High risk – recommend seeking professional/legal advice.
     isolate, but I don’t believe they
                                         -   The employee should have notified the employer they believe they are
     need to.
                                             at risk of spreading COVID-19 (explaining why) and that they do not
     This scenario involves                  want to attend work.
     disagreement between employee       -   Employer should consider the employee’s request in line with Ministry
     and employer regarding the need         of Health public health guidance (www.health.govt.nz).
     to self- isolate.
                                         -   If the employer agrees there is a risk the employee will spread
     Wherever disputes are reasonably        COVID-19: the employer must do what is “reasonably practicable” to
     foreseeable, caution should be          address that risk, including mitigation. Practically, this should include
     exercised.                              self-isolation. It may also include changes in processes and/or agreed
                                             leave.
                                         -   If the employer does not agree there is a risk the employee will
                                             spread COVID-19: the employer must tell the employee this
                                             (including reasons). The employer can agree temporary changes to
                                             the employee’s work and/or agreed leave. The employer should be
                                             aware that if their assessment is incorrect they may be in breach of
                                             their duties to protect the health and safety of workers by keeping a
                                             potential contagion in the workplace, and risk exposing themselves to
                                             serious consequences including penalties and potential claims from
                                             other employees.

     I want my employee to self-         -   High risk – recommend seeking professional/legal advice
     isolate, but they don’t want to.
                                         -   Effective and open communication will be key. The employer should
     This scenario involves                  identify the reasons they believe the employee should self-isolate, with
     disagreement between employee           specific reference to public health guidelines.
     and employer regarding the need     -   Ultimately, it is unlikely that an employer could compel an employee to
     to self- isolate.                       self-isolate in that employee’s private life.
     Wherever disputes are reasonably    -   However, an instruction to an employee to remain away from the
     foreseeable, caution should be          workplace on the basis of a reasonable belief by the employer they
     exercised.                              meet guidelines for self-isolation may be justifiable. A failure by the
                                             employee to follow such an instruction could also be grounds for
                                             potential disciplinary action.

    Federated Farmers of New Zealand                                                                     (19 March 2020)
4   COVID-19 FAQ

     I think my employee can self-      -   Based on current public health guidance, “self-isolation” means
     isolate and still work, but they       avoiding close contact with others. It is conceivable an employee who
     don’t want to.                         is not sick (and willing to work) could still do so while self- isolating
                                            (depending on the nature of the work in question), provided reasonable
     In this scenario, the employer         precautions were taken. Professional advice should be taken in this
     believes the employee can              case as to whether requiring the employee to work is likely to be
     observe public health guidance         considered a reasonable (and lawful) instruction.
     while remaining at work.
                                        -   What is “reasonable” will depend on individual circumstances.
     Wherever disputes are reasonably       Suggested precautions include: (i) minimise close contact with other
     foreseeable, caution should be         workers; (ii) use separate tools/equipment or sterilise shared tools/
     exercised.                             equipment; (iii) do not share food or drinks; (iv) do not use shared
                                            spaces for prolonged periods (> 15 mins); (v) regularly clean and
                                            disinfect surfaces and spaces; (vii) regularly wash hands.

     My employee needs to self-         -   Public health guidance includes measures for people in shared
     isolate and lives in shared            accommodation. It is possible (though not ideal) for a person
     accommodation.                         within shared accommodation to self-isolate, provided reasonable
                                            precautions are taken. See www.health.govt.nz for further information.
     In this scenario, an employee in
     shared accommodation needs         -   What is “reasonable” will depend on individual circumstances.
     to self-isolate, meaning the           Suggested precautions include: (i) minimise close contact; (ii) use
     employer may be required to            separate plates, utensils and cutlery; (iii) separate laundry and
     introduce reasonable precautions       linen; (iv) do not share food or drinks; (v) do not use shared spaces
     to avoid contamination.                for prolonged periods (> 15 mins); (vi) regularly clean and disinfect
                                            surfaces and spaces; (vii) regularly wash hands.
                                        -   The employer should take reasonable steps to ensure any self-
                                            isolating employee is taking any reasonable precautions that are
                                            required.
                                        -   The employer should discuss the fact of the employee’s self- isolation
                                            with any other workers in the shared accommodation, in line with the
                                            privacy principles discussed below.

     One of my employees has self-      -   Where an employee has gone into self-isolation: The Privacy
     isolated/been diagnosed with           Commissioner’s advice is that, in the absence of a health and safety
     COVID-19, what can I tell other        imperative (i.e., a need to inform others to institute precautionary
     employees?                             measures to avoid contamination) there is no need to share
                                            information identifying someone who is self- isolating.
     This scenario deals with the
     information employers can share    -   Where an employee has received a diagnosis of COVID-19: The
     regarding self-isolation and/or        Privacy Commissioner’s advice is that the use or disclosure of personal
     diagnosis.                             information is permitted where an employer believes it is necessary
                                            to prevent or lessen the risk of a serious threat to someone’s safety,
                                            wellbeing or health.
                                        -   In all cases, employers should exercise sensitivity and consider the
                                            potential impact of disclosing the information on the employee. Where
                                            possible, employers should consult with employees before sharing
                                            personal information.

    Federated Farmers of New Zealand                                                                  (19 March 2020)
5   COVID-19 FAQ

     I need to reduce my employee’s       -   Employers are entitled to make changes for genuine business reasons,
     hours.                                   provided they follow a fair restructure process. We recommend seeking
                                              professional/legal advice on particular individual circumstances.
     In this example, the economic
     effect of COVID-19 means an          -   NOTE: Wage subsidies are available for employers whose businesses
     employer needs to change                 are affected by COVID-19. Employers considering making changes to
     employee hours of work.                  employee terms and conditions (like working hours) should consider
                                              whether this additional support influences the genuine business need
                                              (e.g. by alleviating financial pressure on the business), even if only
                                              temporarily.
                                          -   Employers should prepare a proposal for the affected employee(s)
                                              setting out changes and rationale (genuine business need). Employers
                                              should provide relevant supporting information (this can include
                                              financial and/or commercially sensitive information). Employers should
                                              invite feedback from affected employee(s) on the proposal.
                                          -   Employee(s) should be given a reasonable opportunity to consider
                                              supporting information and provide feedback.
                                          -   Employers should genuinely consider employee’s feedback (with an
                                              open mind) before making a decision on the proposal.
                                          -   Further information on restructuring processes is available at
                                              www.employment.govt.nz

     I can’t afford to keep on my         -   Employers are entitled to make changes for genuine business reasons,
     employee. I need to disestablish         provided they follow a fair restructure/redundancy process (as above).
     their position.                          We recommend seeking professional/legal advice on particular
                                              individual circumstances.
     In this example, the economic
     effect of COVID-19 means an          -   NOTE: Wage subsidies are available for employers whose businesses
     employer needs to disestablish an        are affected by COVID-19. Employers considering disestablishing
     employee’s position.                     positions should consider whether this additional support influences
                                              the genuine business need (e.g. by alleviating financial pressure on the
                                              business), even if only temporarily.

     Can my employee continue to          -   Based on current public health guidance, “self-isolation” means
     work while self-isolating, if they       avoiding close contact with others. It is conceivable an employee who
     do not come into contact with            is not sick (and willing to work) could still do so while self- isolating
     anyone in the workplace (e.g. on         (depending on the nature of the work in question), provided reasonable
     a farm)?                                 precautions were taken. Professional/legal advice should be taken in
                                              this case.
     In this scenario, the employer
     believes the employee can            -   What is “reasonable” will depend on individual circumstances.
     observe public health guidance           Suggested precautions include: (i) minimise close contact with other
     while remaining at work.                 workers; (ii) use separate tools/equipment or sterilise shared tools/
                                              equipment; (iii) do not share food or drinks; (iv) do not use shared
     Wherever disputes are reasonably         spaces for prolonged periods (> 15 mins); (v) regularly clean and
     foreseeable, caution should be           disinfect surfaces and spaces; (vii) regularly wash hands.
     exercised.
                                          -   Employers should consult with the affected employee on proposed
                                              arrangements, as well as with other employees on the potential impact
                                              before proceeding. Preparing policies/protocols to be followed is
                                              recommended.

    Federated Farmers of New Zealand                                                                    (19 March 2020)
6   COVID-19 FAQ

     My employee went overseas and     -   Depending on the circumstances, things to consider (and potentially
     now cannot return.                    take advice on) are:

     This scenario involves an             1. How long the employee is likely to be away?
     employee who is prevented             2. Does the employer want to hold the position open for the
     from returning to New Zealand            employee, or terminate employment?
     because of COVID-19- related          3. Does the employer need to source cover while the employee is
     travel restrictions.                     unable to work? If so, is casual or fixed term cover appropriate?

                                       -   These options will require careful consideration of the risks/benefits
                                           to the employer and their obligations to the employee. Ultimately, if
                                           the employee is unable to work for an extended period of work, the
                                           employer is able to take reasonable steps to ensure that business
                                           operations continue as smoothly as possible.
                                       -   We recommend seeking professional/legal advice on individual
                                           circumstances before proceeding.

                                                0800
                                                327 FARM
                                                           FED
                                                646 .ORG.NZ

    Federated Farmers of New Zealand                                                                 (19 March 2020)
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