New Bill To Boost Labour Market Flexibility
Minister for Workplace Relations and Safety
Workplace Relations and Safety Minister Brooke van Velden says amendments to the Employment Relations Act will improve labour market flexibility and help businesses to grow, innovate, and employ with confidence and certainty.
'Today I'm announcing the introduction of the Employment Relations Amendment Bill to Parliament, marking a key milestone in this Government's efforts to help New Zealand businesses employ or contract with confidence and create more and better opportunities for workers,' says Ms van Velden.
The changes give effect to several ACT–National Coalition Agreement commitments, including to provide greater certainty for contracting parties.
'Workers and businesses should have more certainty about the type of work being done from the moment they agree to a contracting arrangement.
'The new gateway test introduced in this Bill will provide greater clarity for businesses and workers around the distinction between employment and contracting arrangements. This will provide greater certainty for all parties and will allow more innovative business models,' says Ms van Velden.
The Bill will also make changes to simplify the personal grievances process including two significant changes.
'The amendment to personal grievances will reduce rewards for bad behaviour and reduce costs for businesses in the process. Under current law, if a personal grievance is established the Employment Relations Authority or Employment Court may award remedies including reinstatement into a role, and compensation for hurt and humiliation. The changes make clear an employee whose behaviour amounts to serious misconduct will be ineligible for remedies.
'This change will ensure that hardworking New Zealanders don't see bad behaviour rewarded,' says Ms van Velden.
The Bill also introduces an income threshold of $180,000 above which a personal grievance for unjustified dismissal cannot be pursued.
High-income employees often have a major impact on organisational performance, getting the right fit is crucial. This change will provide greater labour market flexibility, enabling businesses to ensure they have the best fit of skills and abilities for their organisation. It allows employers to give workers a go in high impact positions, without having to risk a costly and disruptive dismissal process if things don't work out, benefitting those seeking to move up the career ladder.'
Another change will cut compliance at the beginning of employment. By removing the '30-day rule' employers and employees will now be free to negotiate mutually beneficial terms and conditions from the start of employment.
'I am committed to building business confidence, ensuring a strong economy that will lift wages, create opportunities, and help Kiwi workers get ahead,' says Ms van Velden.
The public and interested groups will have a chance to submit on the Bill when it is at Select Committee.
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