New Zealand: Possible Significant Employment Law Changes – New Government

Labour’s 2017 Employment policies when read with those of NZ First would potentially see the following significant changes to employment law in New Zealand:

90 Day Trial Period

Under Labour’s policy the 90 Day “fire at will” arrangements will be replaced by new trial periods that require employers to give reasons for the dismissal and employees will have dispute rights.

Reinstatement

Under Labour Party Policy reinstatement will be reinstalled as the primary remedy for those employees who are held to be unjustifiably dismissed.

New Zealand Law to Apply

New Zealand employment law will apply to everyone working in New Zealand. This change will ensure that even foreign workers who are employed by overseas companies but working in New Zealand are subject to New Zealand employment law. This would override parties choosing foreign law.

Compulsory Minimum Redundancy Compensation

Labour’s Policy is to begin consultation on improving minimum redundancy protections. This is supported by New Zealand First’s Policy which is to set minimum redundancy provisions of up to 13 weeks’ pay.

Restore Union Rights in Various Respects

Labour’s Policy includes:

restoring the unions rights to initiate bargaining in advance of employees

imposing a duty on parties who are collectively bargaining to reach an agreement unless there is genuine reason not to

reinstating the 30 Day Rule which used to exist that required new employees to be covered under an existing collective agreement for that period

 improving access to workplaces for union representatives

Minimum Wage Increase

Labour’s policy is to increase the minimum was to $16.50 per hour. NZ First would increase it to $20 per hour.

Fair Pay Agreements

Labour’s policy is to introduce Fair Pay Agreements. NZ First’s policy is to abolish the statutory “starting out” wage for young people.

Increase in Parental Leave

Labour’s policy is to increase paid Parental Leave from 18 weeks to 26 weeks. NZ First supports this change.

Equal Pay Amendment Bill

The Green Party’s Private Members Bill requires all employers to collect information about how much men and women are paid. The aim is to make discrimination easier to detect. Whether support for this was a concession the Green Party achieved remains to be seen.

By Quigg Partners, New Zealand, a Transatlantic Law International affiliated firm. 

For additional information about labor and employment law in New Zealand, contact David Quigg at newzealandlabor@transatlanticlaw.com. 

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