Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Changes to Part 6A approved by Cabinet



Hon Kate Wilkinson
Minister of Labour
30 October 2012 Media Statement
Changes to Part 6A approved by Cabinet

Cabinet has agreed to further improvements to the Employment Relations Act 2000, including changes to Part 6A that deals with the cleaning, catering, orderly and laundry industries, Labour Minister Kate Wilkinson said today.

The objective of Part 6A is to provide continuity of employment for employees in specific industries when a business is restructured or sold.

“A review of Part 6A found that there were significant operational issues around transferring employees’ entitlements and information to the new employer,” Ms Wilkinson says.

“Proposed amendments will fix these issues and provide more certainty and clarity for employers while at the same time protecting key benefits for affected employees.

In addition, the review found that while larger businesses had been able to adapt better to the requirements of Part 6A, small and medium sized businesses faced greater proportional costs.

“For example, a husband and wife cleaning team who tender and win a small contract may be currently required to take on any staff doing the work under the previous contract owner.

“That’s why Cabinet has also agreed to exempt small and medium businesses – those with fewer than 20 employees – from the provisions of Part 6A where the SME is the incoming employer.”

Employees in small and medium enterprises account for approximately a quarter of those in affected industries.

Other changes agreed by Cabinet include empowering the Employment Relations Authority to declare in certain circumstances that collective bargaining has ended.

The proposed changes – including those announced in May this year – will be reflected in a new Bill to amend the Employment Relations Act 2000 that is planned for introduction to Parliament later this year.

Changes to Part 6A include:

• A requirement for the outgoing employer to forward employees’ information to the incoming employer, such as employment agreements, PAYE, wage and time or leave records.
• A process to help the employers agree how to apportion liabilities for accrued service-related entitlements of employees who are transferring.
• A requirement that employees must decide to transfer to a new employer within five working days (or a longer timeframe if agreed between the outgoing and incoming employer).
• Small and medium businesses – those with fewer than 20 employees – will be exempt from the provisions of Part 6A if they are the incoming employer.
• Additional penalties and compliance orders for non-compliance with Part 6A, and provision for litigation in the District Court.

The proposed changes to Part 6A are part of a package of measures that will extend workers’ rights to request flexible working hours and ensure a fair and flexible collective bargaining environment.

Other changes include:

• A return to the original position in the Employment Relations Act where the duty of good faith does not require the parties to conclude a collective agreement.
• Empowering the Employment Relations Authority to declare in certain circumstances that collective bargaining has ended.
• Allowing employers to opt out of multi-employer bargaining.
• Allowing for partial pay reductions in cases of partial strike action.
• Removing the 30-day rule that forces non-union members to take union terms and conditions.
• Changes around the disclosure of personal information following Employment Court judgments involving Massey University.

The Review of Part 6A: Continuity of Employment can be found at this web link: http://dol.govt.nz/er/amendments/


http://img.scoop.co.nz/media/pdfs/1210/Employment_Law_changes_Q_and_A.pdf


________________________________________


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Protests At Child-Abuse Plea Bargains: Long Sentence For Moko Killers Welcomed

Family First NZ is welcoming the sentence of 17 years given to the killers of Moko, but is continuing to call for a review of child abuse laws and for changes to the legal system to avoid ‘plea bargains’ and child abuse killers having their charges reduced from murder to manslaughter. More>>

ALSO:

No Rail For New Harbour Crossing: National Giving Up On Rail In Auckland

The National Government’s decision to scrap two planned rail lines in Auckland shows it is giving up on a city-wide rail network in Auckland, and on thousands of commuters who sit in traffic jams every single day, the Green Party said today. More>>

ALSO:

Gordon Campbell: On The Ombudsman’s Verdict On Paula Rebstock And Ian Rennie

Unfortunately, the brave and damning report by Ombudsman Ron Paterson on the “flawed” and “unfair” inquiry conducted by Dame Paula Rebstock into events at MFAT pulls back the veil on a far wider issue. More>>

ALSO:

Charities' Report: Stressed Families - Overstretched Services

“Like so many of the whānau and families they serve social service organisations are under huge financial stress. The support demanded from desperate people in communities is far outreaching the resources available.” More>>

ALSO:

Detention: Wellingtonians Protest Treatment Of Refugees

Peace Action Wellington (PAW) and around 50 Wellingtonians blockaded the Australian High Commission, creating a symbolic detention centre to protest the Australian Government's policy of mandatory offshore detention for refugees and asylum seekers. More>>

ALSO:

Diver's Alarums: Breach Means Training Provider Must Repay $1.47 Million

The New Zealand School of Outdoor Studies is to repay $1.47 million (GST-exclusive) to the Tertiary Education Commission (TEC) following an investigation which showed that some student enrolments between 2009 -2014 could not be validated and that courses were under-delivered against their agreement with the TEC. More>>

ALSO:

Education: Government Plans Suggest Bulk Funding Return

Plans by the Government to return to bulk funding are likely to see increased class sizes and schools most in need missing out on much-needed resources, Labour’s Acting Education spokesperson Grant Robertson says. More>>

ALSO:

Interim Report: Auckland Looks Long Term To Pay-Per-Km Road Pricing

Aucklanders can expect to be paying variable rates per kilometre to travel on the city's most congested roads under an emerging transport strategy being formulated by the government and the Auckland Council. More>>

ALSO:

Despite Promises: Government Extends Iraq Deployment

Cabinet has agreed to extend New Zealand’s contribution to the joint New Zealand-Australia mission to train Iraqi Security Forces until November 2018. More>>

ALSO:

On The 'Terrorism' Card:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news