Redundancy Bill puts employees at risks

Redundancy Bill puts at risks those it seeks to Protect

The Status of Redundancy Payments Bill risks adversely affecting those that the Bill seeks to protect and should not proceed.

In a submission to the Commerce Select Committee today, Federated Farmers of New Zealand (Inc) Deputy Director of Policy John Pask said the Bill gives companies an incentive to reduce their exposure to redundancy payments.

"Furthermore the Bill has the potential to encourage a greater investment in capital rather than labour.

"The Bill's objective is to ensure employees have a greater chance of securing monies owing to then in the event of a company collapse.

"While some employees stand to benefit from the Bill, the effect will be to transfer a greater proportion of the risk of company failure onto both secured and unsecured creditors including employees in downstream industries."

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