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Level heads and silver linings (Law)

The Wānaka App

Janice Hughes, Aspiring Law.

05 July 2020, 9:28 PM

Level heads and silver linings (Law)

A lot of the work we’ve been doing recently at Aspiring Law is what I would describe as “crisis management”. Some of the panic is entirely understandable given the huge uncertainty we're living with as a result of the pandemic. But some — and I stress the word some businesses have acted very hastily when, perhaps, a more calm and measured response was called for. 


Tourism operators heavily reliant on international tourists needed to act quickly and take action to save their severely impacted business. We’ve seen some really great examples of businesses in this category pivoting and repositioning. 


Businesses who get most of their income from the domestic market might need to make a tweak, or two, but they need to think very carefully before deciding they need to completely overhaul their business model. 


Then there's the third category, the people I describe as jumping on the doom bandwagon. 


Some businesses have significantly reduced the number of staff they employ, even when the work hasn't really dried up. Many businesses have taken advantage of the government's wage subsidy, but some have used it as an excuse to cut wages.


Businesses that have made people redundant or reduced their wages without proper and due process have ignored a key provision of the wage subsidy which states that "employment law still applies".


There are likely to be serious issues for some of these firms down the road with employees taking legal action. If you've stuffed it up, fix it up. There is still time. Communication is key.


It may be difficult to be optimistic right now, but the fundamentals are still solid for our region and our country. The reasons to live here or visit this part of the world haven’t changed. In fact, it's even more attractive now than it was before. If you now know that you can work remotely, and have the option to do so from this beautiful part of the world, why wouldn’t you?


Feedback, comments and questions are always welcomed – please feel free to e-mail me on [email protected] or to book an appointment online visit: http://aspiringlaw.co.nz/Booking/.

 

Janice Hughes is a Director of, and senior legal adviser at, Aspiring Law. Please remember, this information is designed as a general guide, and should not replace specific legal advice on a particular issue.