NZ Eases Labor Rules for Small Businesses

Shockingly, union leaders are displeased


A change is on the way for a labour law that protects vulnerable workers when their job is restructured.

Labour Minister Kate Wilkinson announced today that small and medium-sized businesses with fewer than 20 employees will no longer be required, under Part 6A of the Employment Relations Act (ERA), to continue the employment of groups of low-paid employees such as cleaners when a business is restructured.

Part 6A came into law in 2006 to protect caretakers, cleaners, catering workers, hospital orderlies and laundry workers; giving them the right to retain their jobs and to be transferred to the new contractor on the same terms of employment.