Compulsory pre-work meetings: a costly mistake for Kiwi employers

In today’s fast-paced retail and service industries, pre-shift meetings and team huddles have become a common feature of the workday. These sessions – often scheduled just before opening hours – are typically used to share sales targets, promotions, safety updates, or operational changes. But when attendance is expected, are they part of the job? And more importantly, should they be paid?

A landmark case involving Smiths City, a major New Zealand retailer, has brought this issue into sharp focus. The Employment Court ruled that time spent in pre-shift meetings must be paid, even when employers describe them as “optional”.

This article explores what the law says about compulsory work meetings in New Zealand, and outlines what businesses must do to stay compliant and avoid costly legal missteps.

Why unpaid “optional” meetings are no longer optional

The landmark Employment Court decision in A Labour Inspector v Smiths City Group Limited [2018] made one thing crystal clear: if your staff are expected to attend meetings before their shift, even if labelled “voluntary” or “optional”, that time must be treated as work and be paid accordingly.

The Smiths city case: a cautionary tale

• Smiths City, a national retail chain, held unpaid 15-minute “sales meetings” before opening each morning.
• The Labour Inspectorate issued an Improvement Notice in January 2016, citing violations of the Minimum Wage Act 1983, as the unpaid meetings meant employees weren’t being fully compensated.
• After appealing, the Employment Court upheld the Labour Inspectorate’s position, those meetings were integral to employees’ roles and employees must be paid for them, even if they were considered voluntary.
• The Employment Court also ruled commission and incentive payments couldn’t substitute for uncapped unpaid hours—they were additional income, not a remedy for underpayment.
• Smiths City was ordered to back-pay all affected employees and bring its practices into compliance.

What were the broader implications across retail?

This wasn’t an isolated issue. Many other major retailers, including Briscoes, Bunnings, Rebel Sport, The Warehouse, Noel Leeming, Harvey Norman, Countdown, Pak’nSave, and Farmers, were flagged for similar pre-shift unpaid meeting practices.

After the ruling:

• Briscoes confirmed they now pay staff for such meetings and audit past practices.
• First Union began tracking over 500 complaints from staff across multiple retailers, including Harvey Norman and Cotton On, especially for meeting times not being paid.

What every New Zealand employer should do

1. Audit your pre-shift/pre-work practices. Any meeting, even advertised as voluntary, where attendance is expected, must be counted as paid time.
2. Update work records. Include meeting attendance in time sheets or rostered hours.
3. Review contracts. If agreements require arriving early or staying late, clearly specify if that time is paid or compensated otherwise.
4. Act now to avoid penalties. Smith’s City had to back-pay six years’ worth of wages.
5. Foster transparency. Communicate policies clearly to staff to avoid misunderstandings and build trust.

Employers who proactively pay for all work, including briefing sessions, demonstrate respect for their staff’s time and compliance with the law.

How can Citation HR help?

Citation HR is here to make managing staff stress-free. Our HR Software is a complete management system built to help you perfectly manage your business’ HR, providing detailed contracts, templates and tools. If any of the information in this article has raised questions or concerns about upcoming or proposed laws, or if you have another workplace matter you need assistance with, we’re here to help. You can arrange a complimentary call with our 24/7 HR Advice Line and speak with an employment relations expert.