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Employment Decisions Welcomed

BusinessNZ has welcomed today’s confirmation of the repeal of the Fair Pay Agreements Act and the opening up of 90-day trial periods to all businesses.

Chief Executive Kirk Hope said Fair Pay Agreements would have proved a disappointment for those covered by them.

"MBIE had advised that the costs of FPAs would outweigh the benefits, and that there were better ways of dealing with categories of vulnerable workers. The cumbersome rules would have meant the collective agreements taking months if not years to complete.

"Meanwhile, FPAs would have done nothing to help grow businesses or jobs. I believe the decision to repeal the Fair Pay Agreements Act will be widely supported."

Mr Hope said business would also be supportive of the decision to open up 90-day trials to all enterprises.

"They are a useful tool for helping a prospective employer and employee work out whether they are a good fit together before committing to an employment relationship. It means that for someone perhaps without a good work history, there are opportunities to demonstrate they can do the job and get into full employment.

"90-day trials can be very beneficial for both parties to an employment relationship - employer and employee - and it will be helpful for all sized businesses to be able to use them in future," Mr Hope said.

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