In Aotearoa New Zealand’s third-ever national state of emergency, businesses and organisations up and down the motu have been affected by Cyclone Gabrielle.
Flooding, power cuts, building damage, and disruption to roads, transport and supply links are all disruptive and challenging to deal with.
Beyond the disruption to business as usual, these difficulties are also challenging on a personal level, and after 3 years of the COVID-19 pandemic, many people are experiencing heightened anxiety, concern, anger, sadness, and worry about what’s happening right now.
We’ve put together this resource to quickly troubleshoot the most common questions we’re receiving from our MyHR clients.
Note: In all cases, refer to the individual or collective employment agreement that you have with your staff members, review your policies before taking action, and seek professional guidance where appropriate.
Updated: 27 February 2023.
My business has been affected by the weather and I can’t open right now. What do I need to pay my employees?
This will depend on what's in the employment agreement that you have with your employees.
Here are some options:
- If your employees have the ability to work remotely or from home and can do so, then discuss this plan with them and pay them normally; or
- If you have a shift cancellation clause, you can use this to give notice to your employees that their shifts have been cancelled. Make sure to give the appropriate amount of notice (typically between 2 and 6 hours); or
- If your business is in a position to do so, as a gesture of good faith continue to pay your employees for the hours they would have worked if you’d been able to open; or
- If none of these options are suitable, then you can run a consultation process with your employees to temporarily put them on unpaid leave for the time that your business is closed.
I’ve got a force majeure clause in my employment agreements, and my business has been affected by the flooding, so I can’t open right now. Can I use this clause to fire my employees?
There's no straight answer to this. Force majeure clauses are typically only used when circumstances beyond your control have affected your business so badly, you are forced to close down and will never re-open.
However, it all depends on your specific situation, taking into account the event, extent of damage, and the inability for employment to continue due to circumstances outside the business' control.
If you want to look at using your force majeure clause, contact MyHR or seek other professional advice.
I sent my employees home early the other day because of the weather, but we’re back up and running now. What do I pay them for the short day?
If your employee can work remotely, then discuss this plan with them, and pay them as usual.
If your employee can’t work remotely, then offer them the option of annual leave or unpaid leave to cover their time away.
If there’s the option for them to make up the hours later in the week, fortnight or month, then you can agree for them to be paid as usual and for them to make up the hours later.
We’re open, but one of my team doesn’t want to come to work, because they’re nervous about the weather getting worse or navigating the roads. What can I do?
These are stressful circumstances, and, understandably, some people will be nervous about venturing out and about.
- If your employee can work remotely, then discuss this plan with them, and pay them as usual.
- If your employee can’t work remotely, then offer them the option of annual leave or unpaid leave to cover their time away.
- If there’s the option for them to make up the hours later in the week, fortnight or month, then you can agree for them to be paid as usual and for them to make up the hours later.
We’re open, but one of my team can’t come to work because of damage from the cyclone. Do I need to pay them while they’re off?
If your employee can work remotely, then discuss this plan with them, and pay them as usual.
If your employee can’t work remotely, then offer them the option of annual leave or unpaid leave to cover their time away.
If there’s the option for them to make up the hours later in the week, fortnight or month, then you can agree for them to be paid as usual and for them to make up the hours later.
What government support is available to individuals who have been affected by the weather?
There is a Civil Defence Payment available to anyone who’s had to leave their home, can’t return to their home, or can’t go to work.
The payments range from $205.78 per week to $1,336 per week, and there are one-off payments available to help with food, bedding etc. Note, your employee(s) will have to apply for this directly.
Ask your employee to call Work and Income on 0800 400 100 to figure out what additional support they may be eligible for.
If they or their family need accommodation, the government's temporary accommodation services are available to people displaced by recent storms.
What government support is available to businesses and organisations that have been affected by the extreme weather?
The government announced $25 million in grants for businesses in cyclone-affected regions to help meet immediate costs, further assist with clean-up, and boost support and advice services.
Businesses will be able to claim up to $40,000, with the funds being distributed by these local agencies:
- NorthlandInc.
- Auckland Business Chamber.
- Toi Economic Development Agency (Eastern Bay of Plenty).
- Thames Coromandel District Council.
- Trust Tairāwhiti (Gisborne region).
- Hawkes Bay Chamber of Commerce.
- Tararua District Council.
Farmers, growers, whenua Māori owners, and rural communities can also access government funding to support the immediate response and recovery efforts - find out more on the Ministry for Primary Industries website.
For NGOs and community organisations, there is an $11.5 million Community Support Package - read more about it in the government press release.
The IRD and banks are also working to provide support - visit the IRD website, and speak to your business manager at your bank to see what help is available.
MBIE also has advice and resources on the Business.govt.nz website.
I’m struggling right now. This is a lot to deal with, and I’m affected by what’s happening. Where can I get help?
You’re not alone. We’re all in this together, and there is support available.
- Need To Talk? - text or call 1737.
- First Steps (mental health and wellbeing support for business owners, managers, and employees) - call 0800 178 783.
- Lifeline - text 4357 or call 0800 543 354.
- Suicide Crisis Helpline - call 0508 828 865.
- Youthline - call 0800 376 633 or text 234.
- Contact your EAP provider (if your organisation has one).
