The Minister for Workplace Relations and Safety, Hon Brooke van Velden, announced two significant changes that will tip the scales towards employers in respect of three key areas:
These developments, together with the Minister’s announcement earlier in the year about a new gateway test for worker status, underpins the Minister’s desire to see more flexibility and choice in the New Zealand labour market.
The Coalition Government plans to introduce a law that will prevent an employee who has an annual income of more than NZD180,000 from bringing an unjustified dismissal claim. The Minister has said that the income threshold will be determined by an employee’s ‘base salary’ and will exclude alternative forms of remuneration (including benefits and incentives). The Minister has also indicated that the threshold will be reviewed annually and adjusted to match increases to average earnings.
These employees will, however, be able to raise other types of personal grievances (i.e. unjustified disadvantage), as well as statutory claims (i.e., discrimination and other human rights claims) and contractual claims. They may also be able to re-open the discussion on employment-related tort-based claims [1].
The Minister has said that this threshold is about providing parties to an employment relationship with ‘greater choice when negotiating’. Based on statements from the...
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