Employment Laws Stopping Employers From Hiring More Staff- ACT

The unacceptably slow progress in getting New Zealanders into jobs is a wake up call for the National Government to get rid of the red tape and bureaucracy that's stopping employers from hiring more staff.

Following the Household Labour Force Survey out today showing unemployment at 7%, ACT Deputy Leader Hon Ken Shirley said the Government can pour all the money it wants into WINZ, but until it sorts out the mess of laws tying up small businesses and employers New Zealanders out of work won't get jobs.

"The current laws are stopping small businesses from hiring more staff. The employment laws are a nightmare for employers who can be taken to the cleaners if they make a mistake and hire the wrong person.

"Our employment laws have created a 'sue the boss mentality' that is driving some small businesses to the wall.

"The recent case of Auckland woman Nicola Bethune who has taken four personal grievance claims against North Shore employers in the past four years for unfair dismissal shows what employers are up against.

"Employers who find the person they have employed isn't up to scratch can find themselves being sued for thousands of dollars if they try to dismiss them. A claim for $10,000 can send a small business to the wall.

"Employers who find themselves in this situation are being advised to settle out of Court, even though they have done nothing wrong, because they simply cannot afford to go through the lengthy and expensive litigation process.

"The tragedy is these employers want to hire staff but they are reluctant to expose themselves to the risks involved.

"To help employers hire more staff ACT wants to see a six month probationary period before an employee can take a personal grievance claim against an employer.

"If Government wants to help New Zealanders into work it must help employers to hire more staff by sorting out the employment laws. This is a key issue for the country's employers and small businesses this election year and ACT is launching a major campaign for jobs this month to get the employment laws sorted out," said Hon Ken Shirley.

ENDS

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