Employees often ask whether an employer can simply cut or cancel a shift. Employers, on the other hand, want to know how much flexibility they really have when work is quiet, demand drops, or staffing needs change. In New Zealand, the answer is that it depends on the employment agreement and how the shift is being changed.
What does the employment agreement say?
The starting point is always the employment agreement. Most agreements specify hours of work, days of work, or a rostered system. If an employee has guaranteed hours, those hours generally must be paid, even if the employer decides there is less work available. Cutting a shift in those circumstances can amount to a breach of the employment agreement.
If the agreement states that hours are variable, rostered, or “as required”, the employer usually has more flexibility. However, that flexibility is not unlimited and must still be exercised reasonably and in good faith.
Guaranteed hours vs casual or variable hours
Where an employee has guaranteed hours, an employer cannot simply cancel a shift to save costs. Doing so may expose the business to a wage claim or a personal grievance.
Casual employees or employees with genuinely variable hours are treated differently. In those cases, employers can usually reduce or not offer shifts, provided the arrangement is genuinely casual or variable in practice and the decision is not discriminatory or retaliatory. Simply calling someone a casual employee does not make it so; the reality of the working arrangement is what matters.
Short notice cancellations
Cancelling a shift at short notice is higher risk. Even where hours are variable, cancelling shifts with little or no notice can raise issues of good faith and fairness, particularly if it happens repeatedly or without explanation.
Some employment agreements include minimum notice requirements for roster changes. If an agreement includes those provisions, they must be followed.
Health and safety or operational reasons
There are situations where cutting a shift may be reasonable, such as where there are health and safety concerns, severe weather events, machinery breakdowns, or an unexpected closure of a worksite. Even in these situations, employers should communicate clearly, explain the reason for the change, and consider whether employees should still be paid, depending on the employment agreement and the circumstances.
Reducing hours long term
Reducing shifts on an ongoing basis is not just a rostering issue. It can amount to a variation of employment terms. Any long-term reduction in hours generally requires consultation and the employee’s agreement. Unilaterally reducing hours over time may expose an employer to claims of breach of good faith or constructive dismissal.
Key considerations for employers
Before cutting a shift, employers should consider whether the hours are guaranteed in the employment agreement, whether the agreement allows roster changes and with how much notice, whether the employee is genuinely casual or variable, whether the change has been clearly communicated and made in good faith, and whether the change is a one-off or part of a broader pattern that could alter the role.
What employees should do
Employees should review their employment agreement to understand whether their hours are guaranteed, keep records of cancelled shifts, raise concerns early if shifts are repeatedly cut, and seek advice if hours are being reduced without consultation.
The bottom line
An employer cannot automatically cut a shift simply because it suits the business. Whether a shift can be lawfully cut depends on the employment agreement, the nature of the role, the notice given, and whether the employer has acted in good faith. When in doubt, employers should seek advice before making changes, and employees should ask questions if they are unsure whether a shift cut is lawful.
If you are regularly changing rosters, cancelling shifts, or thinking about reducing hours due to quieter trading conditions, it is worth checking that your approach aligns with your employment agreements and good faith obligations. A quick review can help you avoid wage claims, grievances, or disputes later on. If you would like practical advice on shift changes, rostering flexibility, or reducing hours lawfully, get in touch for a confidential discussion.
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