Employment Bill Clarifies Modern Grey Areas

BusinessNZ supports the introduction of the Employment Relations Amendment Bill, saying the changes will have a positive impact across New Zealand’s economy.

Director of Advocacy Catherine Beard says the Bill should provide more certainty, particularly around contract-based work.

"In clarifying the employee-contractor distinction through the previously announced gateway test, the Amendment Bill will simplify chosen working arrangements for all parties involved.

"The personal grievance process is being simplified, preventing the likelihood of rewarding poor employee behaviour. A system that increasingly fines employers for trying to deal with poor performance or serious misconduct including theft, fraud and even violence, is one that clearly needs fixing.

"It also makes sense to tidy up the 30-day rule introduced under the previous Government, which saw new employees automatically classed as union members if there is a collective agreement, for the first 30 days - whether they wanted to or not.

"In reality, the 30-day rule is a compliance headache for employers and employees alike, and is something that BusinessNZ has argued should be removed.

"The issues being addressed in this Amendment Bill have been flagged as a drag on productivity and flexibility by businesses. The BusinessNZ Network has been advocating for these changes for some time, and it’s encouraging to see that Minister van Velden is listening to business owners' concerns during what remains a difficult time to be operating.

"BusinessNZ looks forward to working further with the Minister on workplace issues to improve our economy and make New Zealand an even better place to be."

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