Zero-hour contracts gone, PPL extended

A Bill which will eliminate zero-hour contracts, extend paid parental leave (PPL) and help stamp out worker exploitation passed its third reading today, announced Workplace Relations and Safety Minister Michael Woodhouse.

“The passing of this Bill delivers on the Government’s commitment to improve New Zealand’s employment law framework to encourage fair and productive workplaces without imposing unnecessary compliance costs on employers in general,” Mr Woodhouse says. 

“The Bill eliminates zero hour contracts by getting rid of unfair employment practices where employers do not commit any hours of work, but expect employees to be available when required without compensation.

“The Bill also extends PPL entitlements to more workers, including casual and seasonal workers, and primary carers other than biological and formal adoptive parents. It also increases the flexibility of the scheme.

“Parents of premature babies will also benefit from additional weeks of parental leave payments (which could be as many as 13 weeks extra) to better support them during what can be a particularly challenging time.

“The changes to PPL recognise the diversity of modern work and family arrangements and aim to better support families by making it easier for parents to stay connected to the workforce.

“The enforcement of minimum employment standards will also be strengthened with tougher sanctions for employers who intentionally breach minimum standards, increased tools for labour inspectors and clearer record keeping requirements.

“This reflects the Government’s priority to protect vulnerable workers, stamp out harmful, anti-competitive behaviour and help create a fair playing field for all businesses.”

The new laws come into force on 1 April 2016. For more information see: www.employment.govt.nz/er/services/law/legislationreviews/employment-standards-bill.asp