Let's delve into a recent Supreme Court decision that every employer and employee should be aware of.
This decision clarifies how shifts and work periods are treated concerning rest and meal breaks.
The case
In the case of New Zealand Tramways and Public Passenger Transport Employees' Union Wellington Branch Inc v Tranzurban Hutt Valley Ltd NZSC 69, there was a dispute between Tranzurban and the Union representing its bus drivers. The central issue was how split shifts should be treated in terms of entitlements to rest and meal breaks, which are determined by the length of the work period under section 69ZD of the Act.
What is a work period?
According to section 69ZC of the Act, a work period is the time between when an employee starts and finishes work, as set out in their employment agreement. It also includes any authorised breaks taken during that time.
The arguments
Tranzurban argued that morning and afternoon shifts should be treated as separate work periods when the break between them is longer than two hours. This would mean employees wouldn't be entitled to rest and meal breaks during the time between shifts. On the other hand, the Union maintained that split shifts should be considered a single continuous work period, entitling employees to breaks across the entire span.
The decision
Initially, the Employment Relations Authority sided with the Union, but the Employment Court overturned that decision. The Court of Appeal upheld the Employment Court’s interpretation, and finally, the Supreme Court dismissed the Union’s appeal. The Supreme Court found that the relevant clauses in the collective agreement, particularly those allowing for multiple shifts or work periods in a day, were not inconsistent with section 69ZC(a) of the Act.
What does this mean?
This decision confirms that an employee may have more than one “work period” in a single day, provided the employment agreement or collective agreement clearly allows for that structure. In the context of split shifts, this means the time between shifts (e.g., a long break between morning and afternoon shifts) does not necessarily form part of a continuous work period.
As a result, employees working split shifts may not be entitled to rest and meal breaks for the time between shifts, as those entitlements are calculated based on the length of each distinct work period under section 69ZD of the Act. However, it's crucial that the employment agreement explicitly contemplates the possibility of multiple work periods within a day to ensure compliance with the Act and avoid potential penalties.
If you have any questions or need expert advice on rest and meal break entitlements to ensure compliance with the Employment Relations Act, feel free to reach out to us at Douglas Lawyers.
