'Just one more reading to go before it is against the law and a crime for employers to intentionally steal from employees'
The new bill aiming to make withholding wages from employees a criminal offence is now one step closer to becoming law in New Zealand.
The Crimes (Theft by Employer) Amendment Bill passed the committee stage on Wednesday and will now head to Third Reading.
"Very pleased to see this Bill progress through the House, just one more reading to go before it is against the law and a crime for employers to intentionally steal from their employees," said Member of Parliament Camilla Belich, who is the sponsor of the bill, in a statement on Facebook.
"This is a tough-on-crime Bill that will protect NZ workers from exploitation and introduce accountability for bad faith actors."
The bill, authored by MP Ibrahim Omer, amends the Crimes Act 1961 to clarify that not paying an employee their wages is theft.
"The new offence created by this Bill will capture employers who owe wages and intentionally do not pay them to the employee," the bill's general policy statement reads. "This includes the unlawful withholding of wages, salaries, and other monetary entitlements within an employment relationship."
Individuals found liable for this crime could face either imprisonment for up to one year, a fine of up to $5,000, or both. In other cases, the fine would be up to $30,000.
"Workers deserve the codification of their rights within the law," the bill reads. "This small change will provide clear direction to employees that they have the right to be paid what they are due and that it is clearly set out in law."
The bill seeks to address the gap in legislation that does not cover wage theft by employers.
"Existing processes are too complex, and can be a deterrent for those that are victims of wage theft," the bill reads.
Workers who suffer from wage theft also only have civil remedies available to them, according to the New Zealand Council of Trade Unions (NZCTU).
"Workers must spend their own money to argue their case in the court or the Authority, a cost that is too high for many. Too often cases of 'theft by employer' go unpunished and unresolved," said NZCTU President Richard Wagstaff in a statement.
Wagstaff said they are "thrilled" that the law is making its way through the house and looks set to become law.
"Theft is theft. It's past time that the legal system recognises that 'theft by employer' is every bit as serious and criminal as any other type of theft," he said. "At a time when the workers' rights in Aotearoa are under attack, we welcome this win for working people."
