Information for employers – New entrants and the minimum wage

Who is a new entrant?

A new entrant is an employee who:

• is 16 or 17 years of age, and
• has not completed three months or 200 hours of employment, whichever is the shorter, and
• is not supervising or training other workers, and
• is not subject to the training minimum wage.

The adult minimum wage will apply to a 16 or 17 year old employee who is not subject to the training minimum wage if they:

• have completed three months or 200 hours of employment, whichever is the shorter, or
• are supervising or training other workers.

For the current minimum wage rates, see our fact sheet on Minimum Pay, http://www.ers.dol.govt.nz/pay/minimum.html
There is no statutory minimum wage for employees under 16 years of age.

How do I know when one of my employees has completed three months or 200 hours of employment?

By law employers are required to keep wage and time records for all employees (including new entrants). The wage and time records for employees aged under 20 years are required to show the employee’s age.

Provided the minimum training wage is not applicable; a 16 or 17 year old employee who has completed three months or 200 hours of employment since turning 16 will be entitled to be paid at least the adult minimum wage.

When determining if an employee has completed three months or 200 hours of employment, you must include all hours worked by the employee since they turned 16 years of age. Hours worked before the employee turned 16 years does not count towards the three months or 200 hours of employment.

The three months or 200 hours includes employment undertaken with other employers. However, please note that if an employee works for more than one employer during a month, then this only amounts to one month of employment. For example, if one of your employees worked for you and another employer in May 2009, then this only amounts to one month (not two months) of employment.

Therefore you need to know how many hours the employee has worked with different employers, and the periods over which they have worked. This information will help you determine if the employee has already completed their 200 hours or three months or when this will occur. You can ask the employee over what periods and how many hours they have worked since turning 16 and if they are working for another employer when you offer them the job or when you are agreeing a wage rate.

You may wish to provide the employee with a written statement about the period of time the employee has worked for you. A template statement is available on our website at: http://www.ers.dol.govt.nz/pay/newentrant.html

“Supervising or training other workers”

If you employ 16 or 17 year olds who are supervising or are training other workers as part of their job, then (provided the minimum training wage does not apply to them) they are entitled to the adult minimum wage rate regardless of how many hours worked or the period of employment.

There is no legal definition of “supervising or training other workers”. Who is considered to be a worker supervising or training other workers will depend on the facts of each individual situation.

In general, if an employee is 16 years of age or older and is overseeing the performance of another employee, or instructing another employee in the performance of their job it is likely he or she will fall within the category of supervising or training other workers. It is not necessary for an employee to have direct line management responsibility for other employees in order to qualify as an employee who is supervising or training other workers.

To fall within this category, the role of supervising or training would need to be a part of that person’s job, not a one-off event.

What is the training minimum wage?

The training minimum wage applies to people who are required by their employment agreements to undertake recognised industry training involving at least 60 credits a year. The new entrants minimum wage does not apply to trainees.

For the current minimum wage rates, see our fact sheet Minimum Pay, http://www.ers.dol.govt.nz/pay/minimum.html

You and your employee can agree on a higher wage than the minimum wage. But you may not agree to a wage that is less than the relevant minimum wage.

How can I get help?

Contact your industry or employers’ association if you are a member, or call us free on 0800 20 90 20.