Winter has arrived, and with it, the recent unprecedented wet weather. We feel for our clients in Ashburton who have suffered devastating damage as a result of the flooding. Still, winter also means the ski fields are opening with good snow cover. We know a lot of you will be excited about that.

The season has also brought to us two new arrivals to Canterbury Legal. We welcome Jordan Jarman to the team as a property and commercial lawyer. Jordan comes from a well-entrenched legal family, with his sister Bella practising as a barrister in the city, and father Paul in practice in Kaiapoi.

We also welcome Barbara Davey, who joins us as a Senior Legal Executive. Barbara brings a great deal of experience, and will use that to advise and assist clients in the areas of trusts, estates and succession, and property law.

But with those arrivals comes one departure. We said farewell to longstanding team member Eric Lee towards the end of last month, and wish him well with his future career.

Enduring Powers of Attorney



Enduring powers of attorney (EPAs) make a big difference in a lot of people’s lives, and those close to them. We’ve seen how important they can be, so this month we’re doing what we can to make sure people are aware of them.

EPAs allow you to appoint someone to make decisions on your behalf when you’re no longer able to make those decisions yourself. They can apply to personal care and welfare, and property. They provide good peace of mind that your interests will be looked after in the way you’d want them to be.

By their nature, it’s helpful to have EPAs ready in advance in case they’re required with little notice. So please contact us if you, a family member or a friend would like to look at setting one up.

More developments for employee/contractor relationships



Earlier this year and last, we shared a pair of cases that looked at the question of if and when a person regarded as a contractor can be defined as employee. That can be an important question, as employees receive rights and benefits that contractors do not.

A recent Employment Court case advances the discussion even further. A builder was brought on by a building company as an independent contractor. But despite the label, the Court held that in reality, the builder operated as an employee.

It came down to what the relationship actually was, rather than what it was labelled. Factors in that consideration included the control the company exercised over how the builder worked, including stipulated hours; the fact that the builder couldn’t subcontract or work for others; that tax was deducted from his pay by the company; and he didn’t supply his own tools.

The relevance to everyone else? While the decision applied to this specific case, it has precedent value for similar situations. Lawyer Gary Pollak, who acted for the builder in this case, notes that up to 20% of New Zealand workers may be on similar contracts. It’s another reminder that for both contractors and those who contract them, it’s vital to be certain what your relationship is.

Fair Pay Agreements on the horizon

The Government is introducing Fair Pay Agreements, and as one commentator puts it, it could be “the biggest shake-up in the employment sector for decades.”

It’s a system similar to Australia’s Modern Awards. A Fair Pay Agreement sets out working conditions and minimum pay across an entire sector. They are negotiated by a union, and a business representative group such as BusinessNZ. Some employers might be affected by resulting agreements who weren’t actually involved in the negotiations.

While this is likely to lead to better working conditions across sectors, it’s also likely to complicate matters for businesses. A single business might be subject to multiple Fair Pay Agreements, requiring them to set different pay and conditions for different types of employee. That’s a lot more complex than the status quo, and it seems likely businesses will need to call on a lot more HR and employment law advice.

The Fair Pay Agreements Bill is planned for release later this year. People will be able to comment on the Bill through the Select Committee process. It’s something we’ll keep you posted on.

Rent—and home prices—on the rise



The property market continues to flourish. CoreLogic’s research shows Fendalton among the suburbs with the highest median values, and more than 25 Christchurch suburbs have seen $100,000+ median gains over the past year.

But CoreLogic’s chief property economist Kelvin Davidson says we might be reaching the peak of the upswing. “We have always been expecting a slowdown in both sales volumes and property value growth in the second half of 2021 and into 2022, and that remains on track – especially now that fixed mortgage rates, or those on longer terms, are rising.”

“That said, with population growth having generally outpaced property supply increases over a period of several years, we’re anticipating a slowdown, not an outright downturn."
 
Along with house values, average rents on newly-tenanted properties across New Zealand are increasing too. Interest.co.nz’s Residential Rent Report shows that in the first quarter of this year, the average rent was $491 a week, up by $30 compared with the same time last year. The increase was slightly smaller in Christchurch, up $20 to an average $422.

This trend could continue as a result of this year’s Budget. A number of initiatives could lead to increased costs for landlords, which will in many cases be passed on to tenants. These include the removal of the ability for landlords to deduct interest on rental properties against other income, and increased budget to police Healthy Homes Standards.

We may also continue to see more Tenancy Tribunal activity, with $5 million a year allocated to support the Tribunal as it faces increasing demand from changes to the Residential Tenancies Amendment Act.
 

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Well, that's it from us for June. As always, we’re just an email or phone call away for any questions, help or advice. We look forward to chatting next time.