Going through a separation is hard but sorting out what will happen to your children can bring about even more uncertainty and stress. Options are available though to help you reach an agreement about your child care arrangements with the other parent. Reach an agreement between yourselvesThe most efficient and inexpensive way is to reach an agreement between yourselves. The Ministry of Justice has a ‘Parenting Plan Workbook’ that can help guide you when it comes to putting a plan together for the care of your children. It outlines the things you need to consider (e.g. school, after-school activities, doctors appointments) and how the costs will be shared. Child supportThe child support formula can be confusing as there are set rules but also various grounds for departure so the rules don’t apply. Even if you have a voluntary agreement that has been registered with the IRD, either party can withdraw from it and ask the IRD to do an assessment at any time. Just because you share care equally doesn’t mean one of you doesn’t have to pay child support either. If you earn more than your ex partner you could be liable for child support. Step-parents can be also be liable for child support.Get some expert guidance If you’re struggling to reach an agreement about childcare, the Ministry of Justice funds two free services: Parenting Through SeparationA four hour course that provides practical advice about co-parenting for parents no longer living together. It covers topics on how separation affects children and what is best for them, as well as tips and tools to help you navigate your separation.Family Dispute ResolutionA Family Dispute Resolution mediation service (either partially or fully funded by the Ministry of Justice). The mediator is an impartial person who is there to facilitate the discussion and make sure the important issues are addressed and each person hears what the other has to say. The mediator will put any agreements in writing for both parents to sign. They are not there to make any decisions and cannot force you to agree to anything. Get advice from a lawyerIf you still can’t reach an agreement between yourselves, it might be time to get assistance from a family lawyer. How much you use your lawyer is up to you. You may just need some initial advice about your rights or you may want your lawyer to negotiate with your partner on your behalf. Collaborative PracticeSome family lawyers are trained in ‘Collaborative Practice’, designed to help you resolve your disputes in a non-confrontational way. You and your lawyer meet with the other parent and their lawyer to try to work out an agreement together. Collaborative practice allows you to find mutually acceptable solutions together, in a dignified and respectful way, so you can plan your future. You keep control of the process and the decisions being made, and it’s often less expensive than the traditional method where often letters can just go back and forth.Seek help from the Family CourtThe Court process can be lengthy and expensive, but if you’ve exhausted all avenues and still can’t come to an agreement, it might be the last resort. The Court will want to hear from both parents and then a Judge will decide when the children should see each parent. The decision is made into a Parenting Order and is legally binding and enforceable. If there are safety concerns for your children while in the care of one parent, an urgent application can be made. If not, the Court will require you to have taken a ‘Parenting Through Separation’ course and to have attended Family Dispute Resolution before it will accept your application. Helpful resources:MOJ – Family Dispute Resolution info MOJ – Parenting Through Separation info Parenting Plan Workbook Find a FDR / PTS provider Care of Children enquiries

There’s no doubt television and movie making in Aotearoa is booming. Movies like Avatar: The Way of Water; M3GAN; One of Us is Lying; Pearl; Lord of the Rings; Prehistoric Planet; Under the Vines, and even Power Ranges (just to name a few) were all filmed here last year.Filmmaking in New Zealand has become a multi-million-dollar industry. Overseas production companies are packing their bags and heading down under in droves to film in places like Queenstown, Wanaka, Christchurch, Kaikoura, and Whakatane. With more and more movies and high-end TV series being filmed in our part of the world, an overhaul of the industry is timely. Historically, contractors have not been afforded the same rights and protections as employees, but this is all about to change with the introduction of the new Screen Industry Workers Act 2022.The new rules will give screen production workers the right to collectively bargain for minimum entitlements just like employees. This blurs the lines between the usual distinction of employee vs independent contractor as contractors can now take part in the collective bargaining aspect of the employment relations framework. It’s very close to home with the Silverlight Studios film development progressing in Wanaka, so we’ll be waiting to see how this all plays out. 

From October this year, clubs and other organisations incorporated under the Incorporated Societies Act 1908 will need to re-register under the new Incorporated Societies Act 2022. No need to panic though, you’ll have until April 2026 to do it!The changes will help improve the governance and running of Kiwi clubs and give members more courses of action to take if their club does not do right by them.What are the key changes?There is an extensive list of procedural requirements that must be set out and followed in the club’s constitution or rules. More registers and information must be kept by clubs and members must be able to access this information.There must be a dispute resolution process in place for members to make a complaint about the actions of the club, the committee, or other members;A clear set of performance standards expected from committee members;A range of options available to obtain an outcome through the courts for someone who is not happy with the actions of the club, committee, or other members.Drilling down Increased complianceClubs will need to have clear set of written rules on how members can join and consent to being a member, how meetings are run, appointing, and removing committee members, and what liability is covered by insurance, amongst other things. Clubs need to review their existing rules against the minimum requirements expected and include anything missing.Financial transparency and accountability is expected to improve as clubs will need to work through their financial reporting requirements and set out how they will control and manage their finances, reporting back to members annually. A tiered approach to the level of reporting will be required depending on the club’s financial threshold.  Any club that fails to comply with the new requirements could face fines of up to $3,000.Managing disputesA robust internal process needs to be in place for resolving disputes, providing members with an avenue to challenge any actions that impact on their rights or where the actions of the club or committee are breaching the rules or other obligations. Clubs should keep the process flexible so it can be adapted depending on the nature and seriousness of the complaint. Committee members must act in good faith.Anyone on a committee or acting for a club must always act in good faith and in the best interests of the club. There is a duty of care to the club to make sure it does not enter into any obligations the club cannot meet.  Seeking compensationAvenues will be available for members to apply to the court to seek different orders, receive compensation from clubs, officers or members for any breaches of obligations under the rules.If you have any questions, or would like to get some advice, please contact Julie. We also have resources available that can help you. More information that may be useful can be found here.

Although the Accredited Employer Work Visa (AEWV) has only been in place for eight months, the changes keep rolling out.Increase to the median wageFrom 27 February this year, accredited employers have to pay most of their AEWV workers the new median wage of at least $29.66 an hour. You can find out more about the exceptions here. This means the median wage is the minimum wage for most AEWV workers (not to be confused with the New Zealand minimum wage that will rise from $21.20 to $22.70 on 1 April this year). We expect reviews of the median wage will continue and we’ll see rises annually.Automatic 12-month accreditation extensionPreviously, when an employer’s accreditation application was approved, the initial accreditation status was valid for 12 months and the business had to apply to renew its accreditation. Now, all standard businesses that apply for accreditation before 4 July 2023, will receive an automatic extension and their accreditation will be valid for 24 months. While we agree that reducing the administrative burden for accredited employers is helpful, it does raise some concerns about the risk for migrant workers. The initial accreditation process does not make any inquiries into the business’s operation or compliance with its obligations and only requires a business to declare it will comply with the obligations expected from all New Zealand businesses. Further inquiries are only made at the accreditation renewal stage, so there is a very real risk of businesses being noncompliant for the entire 24-month period.Removal of worker’s partners rightsSo far, partners of an AEWV holder have been eligible to apply for a Partner Work Visa but this is going to change from April this year.  Partners will only be eligible to apply for a Partner Visitor Visa and the only exception to this is if the AEWV holder:holds a Green List role; oris paid at least double the median wage (which is $59.32 an hour).If the AEWV holder doesn’t meet those criteria but the partner wants to work in New Zealand, he or she will need to get an AEWV too. This poses a new hurdle for couples who want to migrate to New Zealand but won’t affect anyone applying before April 2023 or who already holds a Partner Work Visa.Why it pays to get it right.Earlier this month, a New Zealand employer, Ati Aaifou-Olive was convicted on 11 charges under the Immigration Act 2009 for supplying false and misleading information in visa applications.Aaifou-Olive mislead a group of Chinese construction workers by offering them highly paid work and promising they could bring their families with them, then issuing them with employment agreements. The charge carries a penalty of up to 7 years imprisonment and/or a fine of up to $100,000. Aaifou-Olive is due to be sentenced in March this year. This conviction reinforces Immigration New Zealand’s determination to put a stop to migrant exploitation. 

Changes are afoot that will help employers and employees better understand their obligations and holiday and leave entitlements.  Improvements to the Holidays Act mean if you’re an eligible employee, (someone with an ongoing job and agreed hours) you’ll soon be entitled to bereavement and family violence leave from your first day of employment. You’ll also be able to start accruing sick leave from that date too.As an employee you will be able to take your annual holidays on a pro-rata basis instead of having to wait until your 12-month anniversary date. And bereavement leave is set to expand too - up to three days leave for additional types of family members.These changes and others will help improve the high degree of uncertainty around the Holidays Act that has long made it difficult for employers to understand and implement.Level 1, 62 Ardmore Street, Wanaka.Tel: 03 443 0900

Raising a child is no easy task. While it can be one of life’s most rewarding experiences, children are expensive and the cost of raising them can be difficult for one parent to manage alone.That’s where child support comes in - the money is paid by the parent not living with the child or sharing their care with the other.Some people think if they share care equally with the other parent, they do not need to pay child support. This would be an incorrect assumption. If one carer earns a higher income than the other, they may be liable for child support. Step-parents too can be liable for child support. You may be surprised to know that you can be required to pay child support for your step-child after separating from the child’s parents. A parent can apply to the Family Court to have someone declared a step-parent of the child, and the court will review the circumstances and make a decision based on the situation.Assessment formulaThe Inland Revenue Department (IRD) manages child support in New Zealand and either carer can apply for it. A formula assessment is used to work out who should be paying and how much. The taxable income of both parties is used, and a living allowance deducted from that. Care arrangements are also considered. For example, if one parent has other dependent biological children in their care. At any time, you and the other carer can reach your own private agreement about child support payments and manage it between yourselves. If you can reach a voluntary agreement about the amount to be paid you can register this agreement with the IRD to manage the payments for you. What if you think the assessment is not fair?If you believe the IRD formula assessment is unfair you may be able to apply for a departure order which will be heard before an administrative review.  This is what is considered when making the orderYou’re responsible for supporting another child or person.You have additional costs because you are supporting a child or person who has special needs.You have commitments that are necessary to support you, another child, or a person who you have a responsibility to maintain.There are significant costs involved to enable the child to have contact with you or the other parent.There are additional financial costs because the child is being cared for, educated, or trained in a particular way that’s expected by either you or the other parent.  The formula assessment is unfair because it does not accurately account for the income, earning capacity, property, or financial resources of either you, the other parent or the child.The formula assessment does not account for money or property that you’ve previously made or transferred to the child, or to the other parent or another person for the child’s benefit.The other parent has been able to live in the family home after the two of you separated if you own or co-own the home.In the three years after you separated from the other parent, you earned additional income to meet the costs of re-establishing yourself and any of your dependents.

Breaking up is hard to do but splitting your finances adds another layer of complexity.The valuation of assets is more of an art than a science but the earlier an agreement is reached, the less likely a dispute will occur.What is or is not relationship property is evaluated at the date of separation. So just what is relationship property?Relationship property are things that are of financial value and includes the family home; contents; vehicles; boat; caravan (regardless of whether these were purchased before or during your relationship); income earned during your relationship; joint property, including bank accounts; and any increase in your KiwiSaver after your relationship begins.While income earned during the relationship is regarded as relationship property, income earned after is not. When it comes to navigating a couple’s finances, there are five key steps.1. Identify all property owned by each person at the date of separation2. Classify the property as either one person’s separate property or relationship property to be shared3. Value the property4. Divide the property5. Determine if an adjustment payment needs to be made to even out the divisionWhat values are used if there’s a gap?The court has the power to decide what the date of valuation will be because values can change over time, especially for depreciating assets like vehicles and appreciating assets like the family home. If time has elapsed between the separation and the date relationship property is formally divided, the value will usually be worked out at the date of the hearing. This provides some flexibility to avoid unfair outcomes.What if a lot of time has passed?It’s common for people to need time to emotionally process their separation before they’re ready to talk about dividing their assets and debts. Some may disagree about what assets are relationship property and who will keep the house. These things can delay the process so it would be unfair to use the separation value.Depreciating assetsIt’s common for values of depreciating assets to be decided at the time of separation. In a recent case, a vehicle was purchased shortly before separation for $45,000. By the time the couple applied to the court 18 months had passed since their separation and another two years had passed before their case was heard. The $12,000 valuation one party had obtained two years after separation was not accepted. The court recognised the asset had depreciated over time, so the value of the car was taken at the time of separation and assessed to be $36,000. The court also noted that although the car had decreased in value, the party who retained it had exclusively benefited from using it over that time.Appreciating assetsFor other assets, the current value may be more appropriate which is common for real estate.Bank account values can be more difficult and are usually worked out on a case-by-case basis. Whether a value is determined at separation date or current date will depend on how much the values have changed and why they have changed. For instance, one party has saved a lot of their income since separation or had additional outgoings since the separation. Your lawyer will likely ask to see both your current bank statements and those at the date of your separation.Word to the wiseNo one has a crystal ball so a contracting out agreement (COA) that is made during your relationship is a good idea. It can help reduce the time it takes to reach an agreement if you separate and clearly define what is your property and what is relationship property.

As Kiwis, most of us understand we have a responsibility as parents to provide for our children. But what if our children are adults and financially independent? As more parents take on the role of the ‘bank of mum and dad’ to help their children buy their first home or set up their own business, the question becomes even more relevant. A child has a right to claim under a deceased’s parent estate and may apply to the court for additional support if they think they have not been adequately provided for. In New Zealand, parents are not only ‘financially’ accountable, but they also have a duty to recognise the child as part of the wider family. To completely disinherit a child is frowned upon by the court unless there are special circumstances; for example, your child has distanced them self from the family.  A court will look at factors before deciding whether to award an amount to a child, or sometimes a larger amount if it is not happy with what your will provides. It will look at the size of the deceased’s estate; the age of the child and whether they are financially independent; as well as any other dependant beneficiaries like stepchildren. The nature and extent of financial assistance given to the child during the parent’s lifetime will have weighting. As in the situation of the ‘bank of mum and dad’.The relationship between the parent and the child is important too. If they were abused or not recognised by the parent and if the child was impacted by this in later life and it affected their ability to earn a living, the court may adjust the amount the parent left for that child or award them an amount if they were left nothing. On the other side of the coin, the court would consider if the adult child neglected the parent. Did they leave home and have no contact with the parent or abuse them? The court’s role is not to rewrite the will of the parent, but it must look at all circumstances in each case and then decide what is fair according to those circumstances, while also having regard to the law.If your children are not treated equally in your will, make sure there’s an explanation or paper trail. And what about grandchildren?Depending on the situation, it can be a good idea to provide for your grandchildren directly if you want them to receive an amount, particularly if you’re estranged from the child’s parent.Grandchildren can also claim from their grandparents’ deceased estate for maintenance and support. In a recent Court of Appeal decision, a granddaughter was unsuccessful in claiming against her grandfather’s $7.4 million estate. Why? The important factors were this. The granddaughter was estranged from her grandfather and the grandfather had left money to his daughter (the granddaughter’s mother) and the mother in turn could provide for her own daughter.Regularly review your will to make sure it still reflects your circumstances.  

It’s a hot labour market right now and employees have more job opportunities than ever, making it easier for them to pack up and go elsewhere. Being left in the lurch is not funny and can seriously impact your business - especially when an employee refuses to work out their notice period.  So, what rights do you have if this happens to you?First up, what is the notice period?The notice period is the length of time from when an employee notifies you that their employment with you is ending, to their last day. This should be recorded in the Employment Agreement, but if not, fair, and reasonable notice is required to be given.  Refusing to work out their notice periodLet’s be clear. You cannot force an employee to show up to work. While it can be frustrating and cause problems for your business, it’s important to keep your cool. Having a calm, down to earth discussion up front is often all it takes to get your employee on the same page as you, and often the wisest course of action.  But, if you can’t come to an understanding, the silver lining is that you are not required to pay out the notice period they aren’t working. What you can’t doYou can’t withhold the employee’s pay, including any owing wages/salary for time they worked, and any owing entitlements like annual leave. Ever.You can’t make deductions from their final pay without their consent (get it in writing). You can’t decide to deduct the notice period they should have worked from wages owing (even if there is a ‘general wage deduction’ provision in the Employment Agreement). The lawThe Employment Relations Authority (ERA) has the power to order an employee to pay damages or a penalty for breaches of their employment agreement. If the employee’s refusal to work out their notice causes a significant loss to your business, you can consider this option. The cost associated with this though could outweigh any damages awarded, and because all ERA decisions are published in a public record, it could affect your reputation as an employer. No silver bulletsCurrently, there’s not a lot of protection for employers when it comes to notice periods. But, setting clear expectations from the beginning, and including the notice period in the Employment Agreement, will help set you on the right path.

Many of us will know someone who has had to go on ‘garden leave’ because of a restraint of trade in their Employment Agreement.   There are two main types of restraints of trade:Non-competition: competing with an ex-employer - either by setting up a business or working for a competitor.Non-solicitation: poaching an ex-employer’s staff, clients, or industry contacts to their new workplace. Restraints of trade can only be enforced if they are reasonable. Restraints need to be specific and genuine, and it falls on the employer to prove the circumstances are reasonable.  The Government has now introduced a new piece of legislation to regulate this area of law and it will change the status quo and limit the use of restraints of trade. Here’s how it’s likely to work.restraints could not exceed 6 monthsrestraints of trade could only be used when the employee earns three times the minimum wageif a restraint is enforced, the employer would have to pay the employee at least half of their normal earnings throughout the duration of the restraintthe interest the restraint protects would have to be described in the employment agreementthe restraint would have to fulfil all of these requirements The big pictureLargely favouring employees, the new bill would stop employers putting in ‘deterrent’ restraints that they know are not enforceable, leaving employees free to take up new job opportunities without repercussions from their ex-employer.Any compensation payments would be an added expense to employers. Employers would also have to think about including unique, specifically drafted clauses to ensure they comply with the requirements. 

The dream of the quarter acre block may be getting harder to achieve but there are some programmes to help get you on the property ladder. We took some time out to investigate what was on offer.The Queenstown Lakes Community Trust Secure Home Programme This programme is a lease scheme. The trust owns the land, and you buy a right to occupy the property for the cost of construction and a yearly ground rent. A 100-year lease provides a home for your lifetime with most of the benefits and obligations of a normal landowner except the ability to on sell the property. If you decide to move on, the trust will purchase back the property at the original purchase price with an inflation adjustment.Rent Saver ProgrammeThis scheme is designed to help you save a deposit to purchase your own home. It entails a five-year lease with rent at market value, you agree to a savings goal upfront. If you achieve the goal, the trust will match your savings of up to $2,600 each year. At the end of five years, you can apply to purchase the house you’re living in under the Secure Home Programme.Kianga Ora First Home LoanMost banks today require purchasers to have a 20% deposit before they will approve lending, but the First Home Loan allows you to purchase a property with just 5% deposit. The loans are with participating banks only and underwritten by Kianga Ora. First Home Grant (Homestart Grant)If you’ve been in KiwiSaver for more than three years you could be eligible to receive $1,000 for each year you’ve contributed (up to a maximum of $5,000) from Kianga Ora. If the property is a newly built home or land to build on, you are eligible to receive $2,000 per year up to a maximum of $10,000. There are certain eligibility requirements:You will need to live in the house for at least 6 months. You need at least 5% deposit which can include the grant and your KiwiSaver, as well as any family gifts (but not bank loans). You will need to be below an income threshold. For individuals, you’ll need to earn less than $95,000 per annum; and couples less than $150,000 per annum. The property also needs to be under a regional house price cap. For Queenstown Lakes this is $875,000 for existing homes and $925,000 for new homes. First Home PartnerThis is a shared ownership scheme to help buyers whose deposit and home loan together isn’t quite enough to purchase a property. Kianga Ora will assist you but it will retain a share in your property. For example, you save 10% of the purchase price and the bank will lend you 75%. That leaves a 15% gap. Kainga Ora will contribute the remaining 15% and retain a 15% share of home ownership with you. You will be obliged to buy Kianga Ora out to the property over time, with the deadline a maximum of 25 years.

The residential village industry is in for an overhaul. A package of reforms has been introduced to combat ‘unfair contract terms’ in occupation right agreements that are proving costly for many residents.An occupation right agreement is the formal document you sign to ‘buy’ your unit at a retirement village and gives you a right to occupy a unit. That means you’re purchasing the right to live in a unit during your lifetime but without taking ownership of the property itself. The purchase price is repaid to you after you leave the unit or die, less a management fee which is automatically deducted each year from the purchase price. There are also additional weekly fees and care costs. One area of concern is that each village can set its own rules and include these in its occupation right agreements. Currently, anyone looking to sign up to a residential village is required to get independent legal advice before they sign an agreement.The key reforms include:‘Unfair’ clauses to be removed from occupation right agreements. Interest to be paid to former residents for capital held if their unit does not sell within nine months. Weekly fees cannot be charged if a contract is terminated or the resident leaves. Better support for residents moving into another facility. This includes the villages lending money to departing residents to cover care costs until their capital is returned. Clarification about who is responsible for the maintenance of chattels.Management fees cannot be deducted once you’ve left the unit. The Residential Villages Association represents 95 percent of all villages in New Zealand and has voluntarily adopted the reforms to trial over the next 12 months. While it accepts some reforms are needed, it is reserving judgment believing there may be some unintended consequences.With one million Kiwis expected to reach the age of 65+ by 2028, the outcome will not only affect those in retirement villages, but their families as well. 

New Zealand’s inheritance law could be in for a shake-up. If it goes ahead, it will bring the distribution of assets upon death more in line with modern day attitudes and values. A lot has certainly changed since the mid 1960’s when the law first came into being, and the old law has failed to keep pace with the diversity of today’s family living situations.The new Inheritance (Claims Against Estates) Act would direct how an estate is distributed if a person dies intestate or without a will. It would uphold a surviving partner’s right to a division of relationship property when their partner dies; give family members and partners the right to challenge a will when someone dies by providing clarification of the legal test for when and how certain family members can claim against an estate despite the will or intestacy laws; and have regard for tikanga Māori.The court would be able to recover property that has been passed to a third party when someone dies if the estate no longer has sufficient property to fulfill other successful claims made against it. The Government will decide what, if any, of these changes will be enacted. This far out, the area of inheritance law seems uncertain, but what we can be sure of is the Government’s focus on this space is certain to bring about change.In our view, having a robust will and/or family trust continues to provide comfort and certainty your wishes will be carried out, and your assets distributed accordingly. It will also minimise the chance of claims against your estate.If you have any concerns in light of the proposed change, or would just like to discuss your options, contact your lawyer. 

In October, Kahu Youth hosted it's 12th annual Cardboard Boat Race. This family favourite event sees friends get together to form cabin crews that create innovative, ingenious, hilarious and downright ridiculous cardboard boats and race them against each other on Lake Wānaka – just for fun and a good laugh.  The Flying Mullets (left) v's The Black Pearl (right).Ten nautical master pieces entered into this year’s competition that saw captains and their crew race out to a buoy and return to shore.  There were 5 prestigious awards up for grabs that were awarded to the following boats. Commodores Choice – M!NTBest Themed – Buzzy BeeMost Outrageous – The Flying MulletsTitanic Sink – Best MatesFastest Boat – Lucky Harold  Lucky Harold skipper receiving the award for fastest boat.Participants were treated to prizes from local sponsors and hot chocolate to warm-up after their race and occasional dunking. "It was so lovely seeing such enthusiasm from Wānaka’s youth to participate in such a unique and comical event" said Sam Strong the Event Coordinator.  Kahu Youth is so grateful for everyone who helped us have a great time at this event.Best Mates (L) vs The Goat Boat (R)A HUGE thanks to…All of the youth that participated and for your efforts and entertainmentour community, thanks for cheering our crews on from the wharfthe QLDC for providing infrastructure, a life guard to supervise the raceLakeland Adventures for creating our course and supporting our raceRed Star Burger Bar and Cinema Paradiso for providing prizes About Kahu Youth. Kahu Youth is a small charity with a big vision for Upper Clutha youth to live their best lives.We achieve this by providing safe spaces where youth can hangout, learn and have fun! We offer 25 different youth development programmes over the course of the year to meet their needs, interests and strengths of local youth.Led by professional Youth Workers, these programmes offer fun and unique experiences and opportunities for youth to develop their capacity strengths, resilience, confidence, wellness, and friendships. 

The Fair Trading Act provides protection to Kiwi consumers by making businesses play fair when providing products and services.  These protections have now been extended to small businesses, who when surveyed in 2018, indicated they were being offered ‘unfair terms’ by other businesses. The Unfair Contract Terms rules in the Fair Trading Act only apply to contracts that are ‘standard form’. These contracts are the ‘take or leave it’ kind where there is little ability for a customer to influence the terms of the contract. From 16 August this year, the rules were extended. Now if you operate a business, the rules not only apply to customers who use your products or services for private use, but also to business customers you trade with.The Unfair Contract Term rules were drafted to ensure that contract terms do not put your customer at an unfair advantage by creating a significant imbalance between you and the customer that could cause a detriment to them – for example, a term where only one party can vary the agreement.In many instances however, the impact of a term can be offset by providing measures to counterbalance the disadvantage. For instance, in the example above, the term could provide that notice is given to the customer and they can cancel the contract without penalty if they wish.Often when we review terms of trade and supply contracts for our clients, they have cobbled the terms together from various websites or documents that have come across. This can be dangerous. It’s important to understand your business and what you are trying to achieve and your contract terms should align with your business processes, so if a term is ever challenged, you can show a legitimate interest that you are trying to protect. Being in business and managing risk goes hand in hand, so the decisions you make about the terms you include in your contract is important. While there is no law on the types of terms you include, if one of your customers takes issue with your terms, they can apply to the Commerce Commission and it could choose to investigate.  When you’re in business, your reputation and brand is everything. Find out more about how important your terms of trade are to your brand in our article entitled ‘Your brand, your terms’. Why not have a go at our online self-assessment tool to see whether your contracts comply with the Fair Trading Act now?

There are around 563,000 small business enterprises in New Zealand – also known as SMEs. That is a whopping 97 percent of all Kiwi firms. These firms employ around 28 percent of our workforce and contribute to over a quarter of our gross domestic product (GDP). Pretty important right? If you’re one of those Kiwi businesses, have you considered what would happen if you lost a key member of your staff who was critical to your business operation? And, as the business owner, do you have a plan in place for yourself to transition out of your business when you want to move on or retire? Research carried out by Xero found that three out of four Kiwi business owners are counting on the funds they will get from selling their business to set them up for retirement. Yet, a staggering 30 percent of business owners surveyed said they did not believe their business would survive without them, and even more concerningly, 47 percent don’t even have an exit plan.Businesses that have a robust succession plan are much more likely to survive and much more likely to be purchased when up for sale. An exit plan will also help to ensure your employees are looked after and impacted as little as possible by any transition. Our business advisory services can help you put together the best plan for your business. Here are the key steps: Identify key positionsIdentify potential successorsDetermine the development needs of potential successors Consider when the potential successors might be ready to take overObtain an ongoing commitment from the potential successors to the path the business needsOur own succession plan at Aspiring LawAt Aspiring Law, we’ve got our own succession plan so that when the time comes for team members to move on to new adventures it’s a smooth transition.  Some of you may be aware, in the next few years, our wonderful co-founder Mike Toepfer, is going to be starting a new chapter in his life and new adventures.To help plan for Mike’s departure, we’ve been busy building a robust team of lawyers and legal executives to support the clients he works with directly. Each client has more than one team member assigned to assist them with their legal work, and Mike’s support crew will be taking on more of a leading role over the coming year.  This way, each client gets to know who else in our amazing wider Aspiring Law team can help them. Taking some simple steps can help ensure the continuity of your business and create some great opportunities for other team members too.Our team approach is just one of the building blocks in our wider business plan. The key is to get all your building blocks in place with a plan that works for you. Come and have a chat to us if you’d like to put your own business succession plan in place.

Have you been putting off getting a divorce because of the paperwork?People often get confused between a ‘separation’ and ‘divorce’. A separation is when you decide to stop living together as a couple, while a divorce is when the family court grants a ‘Dissolution Order’ that legally ends your marriage or civil union.If you’ve been separated for two years or more and want to move on to start the next chapter in your life, we can help. Our new free online divorce tool will take you through the steps, helping to make the process easier for you. You can gather all the information you need to fill out the forms at your own pace, in your own time. When you’re done, we’ll contact you and manage the rest of the process for you. You can get started here.The process that must be followed will depend on:Whether you want to apply together with your ex-spouse or aloneWhether or not you want to appear in CourtIf you apply alone, there will be some extra steps involved to serve the documents on your ex-spouse. The person who serves the documents will need to file an affidavit to the Court to confirm that they have done so. Your ex-spouse will then be given an opportunity to object to the divorce being made. So, where possible, you should make a joint application with your ex-spouse. This will save you on time and money.To find out more about the application process visit our website.

Although brought in with the best of intentions, the Accredited Employer Work Visa (AEWV) has created a few more hurdles for Kiwi businesses wanting to hire migrant workers. Designed to bring in overseas workers where there is a genuine skill shortage (so businesses will hire Kiwis first) and combat migrant exploitation, the new AEWV has placed the administrative burden firmly at Kiwi businesses’ feet. Filling seasonal roles in hot spots like Wanaka can be hard, so if you’re looking to hire migrant workers as tourism ramps up again with our Aussie counterparts and other international visitors returning, getting the AEWV application process underway early on is vital. There are five key steps to getting an AEWV:1. Getting accreditedThere are different types of accreditation and the one suitable for your organisation will take some careful consideration.  Your initial accreditation will be valid for 12 months and will need to be renewed if you want to continue employing migrant workers. 2. Advertising your positionsMost employers are required to advertise the position in New Zealand for two weeks to show that the role cannot be filled by a Kiwi, unless one of these situations applies to you: the position will be paid twice the New Zealand median wage (currently $27 an hour); orthe role is on the Immigration New Zealand (INZ) Green list.3. Applying for the job checkIf your advertising does not produce any suitable New Zealand candidates, you can apply for the job check. To do this you must provide INZ with:an intended employment agreement;a job description; andevidence that you advertised the position in New ZealandIf your job check is approved, you will be issued with a unique ‘Job Check Token’ to give to the migrant worker you’re intending to hire.4. Migrant worker applies for the migrant checkThe migrant worker is responsible for this next step. They need to use the ‘Job Check Token’ to apply for their visa. INZ will then carry out an assessment to determine their suitability to work in New Zealand by checking their:character;health;qualifications and experience; andwhether the offer of employment is consistent with the approved job check. 5. Complying with the accredited employer (and employee) standards.Once the migrant worker arrives in New Zealand, as their employer you must assist them with settling in – this includes providing information about working and living here in New Zealand.Employment NZ has put together modules that must be completed by you as the employer, and the migrant worker as the new employee, within the first month of their employment with you. It’s important to remember that if you’re hiring migrant workers on an AEWV, you must pay the median wage – this is currently $27 per hour, although there are some exceptions to this for certain sectors.The process is not without its hurdles, so if you need some guidance or an employment agreement drafted for your job check, give us call, we’re here to help. 

If you’re purchasing ‘off the plans’ or entering into a ‘turnkey contract’, chances are there will be a sunset clause in your agreement. A sunset clause generally allows cancellation of a contract if the work needed to finalise the contract, such as issuing title or completing a building, is not completed within the specified time frame. Sunset clauses are usually included in agreements and commonly found in those with a long settlement date. They’re usually described as being ‘for the benefit of both parties’. That just means both parties can use the clause to cancel the agreement if the contract isn’t completed before the sunset date.  Sellers will often insert sunset clauses to protect themselves from delays caused during a building or subdivision process. For example, sometimes a consent will not be granted by the consent authority because the application doesn’t comply with the rules, or, a consent is granted but it has terms that makes the development uneconomical. If that happens, the seller can invoke the sunset clause to cancel the sales agreement after the sunset date has passed. That then avoids them being trapped in an agreement that can never actually settle. There have been several cases in the media over the last year where it has been reported developers have invoked sunset clauses to cancel agreements. According to the news articles, the developers have given the cancelled purchaser the option to sign up for the property again but at a higher price. This kind of action is uncommon, and depending on the circumstances, may not stand up to legal scrutiny. The key thing is to assess the risk of any purchase you make by understanding who the developer is, what work needs to be done to complete the contract, and whether the developer has a good reputation and history of getting projects completed. While it may seem risky, and a little nerve-wracking, that a developer can use this sort of clause, it is not common that they do. The reputational damage of cancelling and potentially being seen to be doing something shady, can have a huge impact on a developer’s business. They are therefore generally pretty cautious at invoking these clauses as a result. Sunset clauses can also be drafted to only benefit a buyer. That makes it especially important to check the wording of any clause you are presented with to make sure you understand it. Purchasing off the plans remains an excellent way of getting onto the property ladder or investing but it does pay to understand the paperwork and assess your risk fully at the outset.Each company has its own form of contract. Before you sign anything, get legal advice to ensure it is relevant to your particular situation. These documents need to be very detailed and cover off every possibility.