The Government has introduced a new bill to amend the Employment Relations Act 2000.

The proposals focus on two key areas: employee rights and union rights. While the proposal includes some new initiatives, a significant number of the changes are a roll-back of changes enacted by the previous government.

The proposed major changes for employee rights include:

  • Restriction of the 90 day trial period. Only employers with less than 20 employees would be able rely on the use of trial periods. Probationary periods would remain available to larger employers. However, unlike trial periods, dismissals in reliance on probationary periods allow employees to raise claims for unjustified dismissal.
  • Restoration of rest and meal breaks. Currently, employers and employees are encouraged to bargain in good faith for the timing and length of rest and meal breaks. The proposed restoration of prescribed rest and meal breaks is intended to provide certainty to employees. A very limited number of employers in essential services will be exempt from the requirements.
  • Reinstatement restored as the primary remedy to unfair dismissal. To avoid reinstatement, an employer will need to be able to show why reinstatement is unreasonable and impracticable on the facts of the case.
  • Greater protection for "vulnerable employees". Under existing laws, employers with 19 or fewer employees are exempt from providing the protections afforded to specific groups of employees (considered to be at greater risk of losing their job due to restructuring). Under the proposed changes, small employers will no longer be exempt and employees will have more time to consider whether to transfer to a new employer.

The bill also proposes to restore various union rights, including:

  • Union access without prior employer consent. Unions would still be required to access workplaces at reasonable times without disturbing business continuity and health and safety.
  • Duty to conclude bargaining. Once again this would be required unless there is a "good reason" not to.
  • '30 day rule'. The 30 day rule would require new employees (who were not union members) to be employed under terms consistent with the applicable collective agreement. After 30 days, the employer and employee could negotiate changes to the individual employment agreement.

The new bill also proposes a number of new laws to support union rights, including:

  • Requiring employers to provide reasonable paid time for union delegates to represent other workers;
  • Including pay rates in collective agreements; and
  • Requiring employers to provide membership forms and information about unions in the workplace to prospective employees.

The bill will have its first reading in February and could become law later this year.

The proposed changes will not be the first under the new government. In December last year, the Government implemented its first major change, with the extension of paid parental leave and an increase in minimum wage. In April this year, the minimum wage will be lifted to $16.50.

While there are undoubtedly many more changes to come, it is already clear that there will be a significant change in the employment law landscape with an increased focus on employee rights. While this is good news for employees, many of the changes may prove more difficult for employers.

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