Latest news with #EmploymentRelationsAmendmentBill
Scoop
5 days ago
- Business
- Scoop
Further Erosion Of Employee Rights
If a current government bill is passed, wage and salary earners on $180,000 a year or more will lose a key part of their employment rights. Employers, employees and other interested parties have only a very short time to assess the Employment Relations Amendment Bill, and to submit - for or against - to the select committee. Inland Revenue 2024 statistics record just over 125,000 employees as earning above that level. The Bill will if passed: Mean all new employees paid above that level cannot raise an unjustified dismissal personal grievance – unless their employer has agreed they can; After a 12 month transitional period, all current employees will lose that right - unless their employer agrees to retain it; (During this transitional period they can still raise an unjustified dismissal personal grievance or other proceedings contesting their dismissal.) Employees whose pay rise takes them above $180,000 will then lose the right; Other legal claims in respect of dismissals are also affected. Wellington law firm Bartlett Law says the changes, as government policy, have important implications for employers and employees. They have expressed concern that the Bill is a further erosion of employee rights. It follows on from the extension of no-fault trial periods to all employees and the recent changes to the pay equity legislation. A "dismissal" includes any termination of employment; not only termination for serious misconduct. Constructive dismissal claims may also be barred. Employers will not have to tell an employee paid $180,000 or more why their employment was terminated. Their dismissal can be instant, unexplained, and without remedy. They need get no prior warning. The firm says its experience over more than 30 years shows no connection between level of salary and likelihood of unjustified dismissal. Its experience includes senior staff, including chief executives, being unjustifiably dismissed. It says the change has no real advantage for employers. If the Bill passes, the focus will shift to a wide range of other possible litigation, instead of a well-established current process. Employees subject to the Bill will also lose several good faith rights. Currently when an employer is proposing to terminate an employee's employment, the employee is to be provided with information about the proposal and must have the opportunity to comment on the information before the termination decision is made. The Bill takes away these rights. Employers could dismiss instantly with or without justification, in any situation including redundancy. The firm predicts thousands of affected employees will seek "contracting in", which will be legally possible, but can only happen if both parties agree. There will be no obligation or incentive on employers to do so. The Bill includes other significant changes to employee rights, including refusing remedies to 'at fault" employees.
Scoop
16-07-2025
- Business
- Scoop
Parliament Considering Big Changes To Employment Law
, Editor: The House Parliament has kicked off a three-week sitting block this week, and the first legislative business was initial debates and votes on three new bills. Two are contentious, including a bill to amend current Employment Relations law. Among its measures, it would restrict or even rule out grievance claims, make it harder for contractors to argue they are employees, and remove various rules relating to new employees. The minister in charge of both the bills is ACT MP Brooke van Velden. She described the intent of the Employment Relations Amendment Bill using a variety of common euphemisms (rebalancing, flexible labour markets, greater certainty, competitive business settings), but also described the proposed changes. Below are the major changes, as described by the minister herself, along with comments by opposition MPs. Hindering contractors from being declared employees by the courts "Currently a contractor can challenge their employment status in law despite being a contractor … To give greater weight to the intention of the contracting parties, the bill establishes a gateway test establishing an exclusion from the definition of 'employee' in the Employment Relations Act." - Brooke van Velden (ACT) "At the moment, there is a test of the real nature of the job … 'is this actually an employment relationship or is it a contracting relationship?' That's what our judges can do at the moment. This bill takes that away. It says if you have the word 'contractor' written in a document, then you're a contractor. Well, this is against all the international examples, this [is] totally different to the common law that applies in many other countries that we compare ourselves to, and is an absolutely disgusting, unprecedented attack on workers' rights." - Camilla Belich (Labour) Changes to personal grievance 'remedy' settings "I'm introducing a suite of changes to address this imbalance, which are: removing eligibility for any remedies for employees whose behaviour amounts to serious misconduct; removing eligibility for reinstatement into a role and compensation for employees who contribute to the situation that led to the personal grievance; clarifying that the Employment Relations Authority and Employment Court have the full spectrum of remedy reductions - up to 100 percent - available to them; requiring the Authority and Court to consider if the employee's behaviour obstructed the employer's ability to meet their obligations to act as fair and reasonable employers; and increasing the threshold for procedural error to shift the focus solely to whether any errors in the employer's process resulted in the employee being treated unfairly." - Brooke van Velden (ACT) "In an employment relationship, often there is a situation where an employee may do something that is not 100 percent perfect; an employer might do something which is not 100 percent perfect. The situation that they're bringing in says if the employee is anything less than perfect, they can't get their remedies." - Camilla Belich (Labour) "It's going to heighten the workers' vulnerability to be unjustifiably dismissed. And it's great if you have employers that are good, but, unfortunately, this opens the doors, as it does for many situations, for those worst-practising businesses and employers. That's why employees' rights were put in place in the first place. …This gives the employers more power. When you're in a climate where there isn't a heck of a lot of work, that then creates an opportunity for employers to exploit the most vulnerable." - Debbie Ngarewa-Packer (Te Pāti Māori) No personal grievance option for the well-paid "This bill introduces an income threshold of $180,000 per annum, above which a personal grievance for unjustified dismissal cannot be pursued. … By making it easier to remove poorly performing managers and executives while giving new talent a chance, I expect to help improve management capability and thereby lift economic performance across New Zealand." - Brooke van Velden (ACT) "The first thing that they're doing is actually making it so anyone earning over $180,000 in New Zealand can be fired at will." - Camilla Belich (Labour) Employer obligations to new staff "Currently, if an employer is party to a collective agreement that covers the work of the new employee, an employee's individual employment agreement terms must reflect the terms of the collective agreement for the first 30 days of their employment. This is known as the '30-day rule'. …The bill removes the requirement that the terms of a new employee's employment agreement should reflect the terms of the applicable collective agreement for the first 30 days of employment. …The employer would still need to inform an employee that a collective agreement exists." - Brooke van Velden (ACT) "The 30-day rule acts as a lifeline. It gives kaimahi time to consider union membership before being pressured into an individual agreement. Without this rule, employers could use the divide and rule tactics, which is real - the peer pressure to keep Māori kaimahi, to keep Pasifika kaimahi, to keep those who are not savvy on what their rights are, on weaker contracts from day one. And that's a really tough position to claw back from. It allows employers to opt out of collective conditions on day one, and it creates a race to the bottom." - Debbie Ngarewa-Packer (Te Pāti Māori) Union sign-up The minister in charge of the bill, Brooke van Velden did not mention this aspect of the 30-day rule: that the new law removes any obligation of employers to inform new staff of the option of joining a union, or facilitating that option. "It removes the obligation to provide an active choice in which the employer asks the employee whether they want to join their relevant union and receive that advocacy." - Ginny Andersen (Labour) A note on international obligations "We have a regulatory impact statement where all of the information in relation to international obligations is redacted. And why is this? Because we have free-trade agreements with lots of different countries that state that our employment situation should not decrease - and I bet you that that's exactly what it says in this regulatory impact statement. They won't share it with the House." - Camilla Belich (Labour) The Employment Relations Amendment Bill will be considered by the Education and Workforce Committee, which will be asking for public feedback on the bill. *RNZ's The House, with insights into Parliament, legislation and issues, is made with funding from Parliament's Office of the Clerk. Enjoy our articles or podcast at RNZ.
Scoop
16-07-2025
- Business
- Scoop
Public Submissions Open On The Employment Relations Amendment Bill
The Education and Workforce Committee is calling for public submissions on the Employment Relations Amendment Bill. This bill proposes changes to the Employment Relations Act 2000, which is the principal piece of employment legislation that regulates employment relationships. It aims to make New Zealand's business settings more competitive, and to give businesses the confidence and support to grow, hire, and innovate. The bill seeks to reduce compliance requirements and associated costs, including for small-to-medium-sized businesses. In particular, the bill seeks to: provide greater certainty for contracting parties amend the personal grievance process for employees introduce a wages and salary threshold for unjustified dismissal personal grievances remove the '30-day' rule to support an expansion of 90-day trials at the start of employment. Make a submission on the bill by 2.00pm on Wednesday, 13 August 2025.
Scoop
15-07-2025
- Business
- Scoop
Employment Relations Amendment Bill Passes First Reading
Minister for Workplace Relations and Safety Workplace Relations and Safety Minister Brooke van Velden welcomes the successful first reading of the Employment Relations Amendment Bill, calling it a major milestone in helping businesses employ and contract with confidence. The Employment Relations Amendment Bill will now be considered by the Education and Workforce Select Committee where people can have their say on the proposed changes. 'This Bill reflects the Government's commitment to supporting New Zealand businesses and creating more and better opportunities for workers.' The legislation delivers on key commitments from the ACT–National Coalition Agreement, including: Clarifying the distinction between employment and contracting arrangements, giving greater certainty to both businesses and workers. Simplifying the personal grievance process, including the introduction of an income threshold of $180,000, above which unjustified dismissal claims cannot be pursued. This Bill also proposes removing the 30-day rule, allowing employers and employees to negotiate mutually beneficial terms from the start of employment, reducing compliance burden and increasing flexibility. 'I encourage all interested New Zealanders to have their say on the Bill, and I see the Select Committee process as an important way of strengthening the final Bill and making sure it works for a wide variety of working relationships and situations. 'I am particularly interested in hearing feedback on whether the gateway test criteria are workable and whether the test covers a variety of genuine contracting relationships. I am also interested in hearing feedback on the high-income threshold for personal grievances, both from those who may use it as an employer and those who would be affected as a worker. 'I am looking forward to hearing what New Zealanders have to say about the Bill during the Select Committee process,' says Ms van Velden. Notes:
NZ Herald
06-07-2025
- Business
- NZ Herald
Comment: Employment Relations Amendment Bill proposes contractor test, grievance limits
THE FACTS Significant changes to employment law are one step closer, with the Government introducing the Employment Relations Amendment Bill to Parliament last month. This bill sets out the changes flagged by the Government earlier this year, and provides further detail as to how those changes will work. The bill
