4 June 2015

Bill to reduce contracts being used to avoid paying the minimum wage

The Minimum Wage (Contractor Remuneration) Amendment Bill aims to stop New Zealanders being paid less than the minimum wage when they are taken on as contractors rather than employees, says Labour MP David Parker.

“The Government is failing to ensure the economy delivers for all New Zealanders. More and more people today are not protected with basic rights like sick pay, holiday pay or the minimum wage.

“There are a number of unfair employment practices occurring which must be addressed. Zero hour contacts, workers from overseas not being paid the minimum wage, tied contractors who do not get minimum protections, or cleaners who buy franchises and are paid less than the minimum wage, all need addressing.

“These people deserve to be treated decently, and that includes minimum protections.

“This Bill addresses the minimum wage, which should not be able to be avoided. We are going in to bat for these people.

“In some overseas countries minimum pay legislation applies not just to wages but also to other arrangements – to employees and to contracted workers – so paying the minimum wage cannot be avoided.

“This Bill will help people such as couriers, paper deliverers and other people who are contracted to do a large amount of work in limited time frames. It is a start, and I hope MPs from other parties in Parliament will support the initiative.

“The issues this Bill addresses fit under the broader Future of Work project Labour is leading to provide the job opportunities, skills and security of income Kiwis deserve,” says David Parker.

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