By Vaughan Granier

Welcome to part four of our series on how to become an Accredited Employer with Immigration New Zealand (INZ).

HR processes are the day-to-day, practical methods you use when dealing with employees. Some of these common practices are directly covered and guided by policies such as leave entitlements and code of conduct, while others are supported by processes. And businesses must ensure that their policies and processes are up to scratch before applying for accreditation – otherwise, you run the risk of being rejected.

In this article, I explain what the principle of good faith is, how to prove it, and why businesses must ensure their HR policies and processes are compliant.

The principle of good faith: what is it?

When things go wrong, HR processes often come under intense external scrutiny to ensure that the company has adequately met its lawful responsibilities – either at mediation or, in extreme cases, at the Employment Relations Authority. Generally, the primary driver of what is seen as good and fair, is the principle of good faith.

Good faith means dealing with each other honestly, openly, and without misleading each other. It requires all parties to be active and constructive in establishing and maintaining a productive relationship where they’re responsive and communicative.

When does good faith apply?

The obvious times when the principle of good faith is tested are when an employee faces disciplinary action, performance management, and restructuring and redundancy. This list isn’t exclusive, but these employment areas have clear and specific processes that protect the employee by ensuring that good faith underpins the employer’s actions.

Employers, seeking to show INZ that they’ve complied with HR processes in a way that demonstrates good faith, may be asked to show evidence of that behaviour.

How can you prove good faith?

Evidence of good faith would include records of:

  • disciplinary hearings;
  • performance management processes;
  • consultation and communication during restructuring; and
  • dealing with a harassment or bullying complaint.

Some employers have tried to misuse the restructuring process: for example, using it as a bogus reason to end someone’s employment when dealing with performance or misconduct issues. Note that this practice is inherently unfair and deeply frowned upon by INZ and the Labour Inspectorate and it can harm any accreditation application.

Payroll

There are many vital HR processes that businesses must get right, and payroll is one of them. Every employer must carefully manage the individual components of the payroll process to make it easy to prove compliance. Failure to comply can lead to prosecution, significant financial penalties, and stand-down periods during which no visas will be granted.

The payroll processes you should pay most attention to, and where you may be required to prove compliance, are:

  • timekeeping and recording;
  • minimum wage compliance;
  • holiday (annual leave) pay, public holiday pay, sick leave, and payroll calculations;
  • payslip delivery; and
  • termination pay compliance.

If you find staying on top of all your HR processes to be a time-consuming task, HR Assured has a complete workplace relations solution from a 24/7 Telephone Advisory Service to cloud-based software (and more) to help you manage all your employees and information.

The team at HR Assured are experts in human resources and workplace compliance practices. If you’re interested in how we can help you become an Accredited Employer, contact us.

Other articles in the series:

Vaughan Granier is the National Workplace Relations Manager for HR Assured NZ. He has over 24 years’ experience in international human resources, health and safety, and workplace relations management. With over 13 years working in New Zealand and Australian companies, he provides in-depth support to leadership teams across all areas of HR, Health and Safety, and employee management.