October 2021 - January 2022
Reconsider your staff structure
Government support packages, particularly the government’s wage subsidy, are available to help support businesses keeping staff on. However, it is worth keeping in mind that there are a number of other options available to employers short of termination, such as: - Asking staff to work from home, if it is safe and appropriate to do so. - Encouraging staff to use their annual leave. - Asking staff to take unpaid leave. - Discussing temporary salary or wage reductions with staff. - Negotiating job-sharing arrange-
ments to move full-time staff to part-time. - Temporarily standing down staff with a view to rehiring them as business improves. “We recommend that employers proactively consider these issues and what their response might be, bearing in mind that the situation is likely to evolve over time,” explains law firm Buddle Findlay. “As always, preparation and open communication are key. Aside from health and safety considerations, employers would be prudent to recall the overarching obligation of good faith, which applies to all employment relationships, when making decisions on how to deal with individual circumstances.
Follow up any unpaid invoices These are difficult times, it’s important to work with your customers and be flexible with unpaid invoices. If your customer can’t pay the full amount due, try to get a partial payment or create an instalment plan. You can start chasing late payments with a friendly email, followed by a phone call. If that’s not getting you anywhere, try asking to talk to the person who actually makes the payment and getting a promise to pay by a particular date. Many energy companies also offer extensions to payment terms for unpaid energy for commercial customers too – contact yours to find out if you qualify.
“Employers are encouraged to discuss and agree a format for dealing with individual risks in a way that is suitable to both parties, whilst ensuring wider compliance with duties under the HSWA [Health and Safety Work Act]. We recommend such agreements are clear and in writing, to avoid any doubt.” Employment New Zealand has reminded employers that they must act “fairly and reasonably” when making changes to their job. The regulator has a dedicated website on changing an employee’s working arrangements due to COVID-19, as well as a step-by-step guide for the workplace change process.
Seek relief on rent payments It can be possible to negotiate with your landlord over commercial rents, with some tenants already securing amended terms. “Some landlords are working constructively with retailers and offering rental holidays or reduced rents to help navigate through the crisis, and Retail NZ applauds those who are doing their best to help,” the retail body’s chief executive, Greg Harford, says.
Review and reduce any unnecessary overheads Rent and staff costs may be among the biggest overheads for many businesses but far from the only ones. Now is a prime time to review some of the regular expenses your business incurs and separate out the must-haves from the nice-to haves. One place to start is with any online software or subscription services you are signed up to that aren’t essential in this period. Cancelling them can reduce your outgoings and keep your cash flow healthier. Other ideas are to jump online and do price comparisons on your major bills and shop for a better deal. You could start with your internet and phone provider, and then move onto your insurance and energy bills. safetynews.co.nz 61
MANAGEMENT
For many business owners, the thought of having to let staff go during a downturn is a major source of stress.
