Retail NZ Urges Further Refinement Of Employment Leave Bill

Retail NZ says retailers are largely in support of the Employment Leave Bill currently before select committee, but hold serious concerns about the proposed 12.5% Leave Compensation Payment.

Retail NZ Chief Executive, Carolyn Young, says the organisation has undertaken extensive consultation with members on this Bill, which aims to simplify and modernise New Zealand’s leave system.

“Our members strongly welcome the intention behind this Bill and the significant improvements it makes to the Holidays Act,” Ms Young says.

“Moving to leave accrual in hours and a simpler, more consistent way of calculating leave payments will substantially reduce the compliance burden for retailers. These changes are long overdue, with businesses of all sizes struggling with the complexities of the current leave requirements.”

However, Retail NZ’s submission to select committee highlights the concerns its members have about the proposed Leave Compensation Payment (LCP) of 12.5% for casual workers and permanent staff working additional hours.

“Our members have been very clear that this change could be insurmountable for many small retailers,” Ms Young says.

“After several years of challenging economic conditions, rising costs and tight margins, many businesses simply do not have the capacity to absorb a significant increase in wage costs. For some employers, this 12.5% payment risks their viability, and discourages flexible work arrangements.”

Retail NZ is urging the Government to consider lowering the proposed LCP rate to something more reflective of what would be collected if the worker was earning sick and annual leave.

“We support a leave system that is fair, transparent and workable for everyone,” Ms Young says. “The core reforms in this Bill move us much closer to that goal, but it is vital the final legislation balances employee protections with the real operating conditions facing retailers.”

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