'This law damages employer-employee relationships and discourages job creation'
10 May 2025
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Businesses across New Zealand have called on the government to reconsider its move to criminalise wage theft as it could strain employer-employee relationships.
Rajesh Goyal, president of the Auckland Indian Retailers Association, told Radio New Zealand that the move was "unnecessary and harmful."
"This law damages employer-employee relationships and discourages job creation," Goyal told RNZ.
"We urge the government to reconsider this law and focus on fair, practical solutions that support both workers and businesses."
According to Goyal, there are already existing laws that provide solutions to wage theft.
"Involving the police in minor disputes — sometimes as little as \$100 — is an unnecessary burden on law enforcement and businesses," he said.
"Wage issues should be handled through employment dispute channels, not the criminal justice system."
Jaspreet Kandhari, general secretary of the New Zealand Indian Business Association, echoed a similar warning on the legislation's impact on workplace relationships.
"The law could strain employer-employee relationships, given that the balance has tilted too far in favour of employees," Kandhari said as quoted by RNZ.
The general secretary stressed that while they agree that wage theft is not acceptable, the government's legislation is at risk of getting misused or abused.
According to Kandhari,...
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