Employment Law Changes
As I get around local businesses in Kapiti and Horowhenua there are encouraging signs the economy is growing out of recession – although it’s still a bit patchy.
It’s been a tough few years but we are in better shape than many other countries around the world.
One of the biggest priorities for the government is creating more jobs, and to do this we need employers confident enough to expand their businesses and hire new employees.
This is why last week the Government announced an extension of the 90-day trial period for new workers who take up employment in a large business (greater than 20 staff).
After the election we introduced a 90 day trial period for small employers which has been working extremely well. This is especially important for our region because Horowhenua and Kapiti are built on small and medium sized businesses.
A Department of Labour report found that 40% of employers who hired a worker under the scheme wouldn’t have hired that worker without a trial period. It also found that the vast majority of people employed on a trial period have remained employed.
This shows how important it is to give people a chance, especially for disadvantaged groups like the young, the long-term unemployed and new migrants.
Often employers are reluctant to hire because they are worried the person won’t work out and they’ll be stuck in a bad relationship. This new law gives both sides the chance to see if they are suited to the role and if they want to continue.
When the trial was first announced, some unions claimed they would expose any bad employers who abuse the scheme. Since then, we’ve heard nothing which highlights its success.
We’re also changing the Holidays Act to make it more flexible. Employees will be able to trade in a week of annual leave in return for cash, but only if the employees chooses to do so. Employers cannot force workers to choose either option.
The Job Ops programme which has also been successful in helping young people find work is still available.
Job Ops targets unskilled and unemployed 16 to 24 year olds and subsidises employers $5,000 for each person hired into a position for six months. This consists of an upfront payment of $3,000 with a further $2,000 paid once the person has completed six months in the job.
This is part of the Government's Youth Opportunities package, and it’s designed to give young people the chance to build their skills and progress. It also helps small and medium-sized businesses to grow with little or no risk.
Overall, these packages are a big step forward in creating more jobs and opportunities for New Zealanders.