Minister unveils government's priorities for businesses
Workplace Relations and Safety Minister Brooke van Velden has unveiled the government's plans to reform the Holidays Act and the Health and Safety at Work Act.
Van Velden said in an address to the Auckland Business Chamber that delivering improvements to the Holidays Act is among her priorities this year.
"The first action I am going to take is to make sure that any changes to the Act are workable and are a material improvement on the status quo," the minister said.
The previous government attempted to introduce reforms to the Holidays Act through the formation of a taskforce in 2018 but were unable to make changes until the end of their term.
"One of the reasons it has taken so long to deliver change is that the previous government's proposed changes were so complex, it has taken years to move from policy decisions to getting draft legislation," Van Velden said.
"If the policy is difficult to draft, chances are businesses would have a tough time implementing it too."
The minister pledged to get feedback from stakeholders who will be affected by the Act.
"We need the Act to be workable for everyone, from the multi-national corporates to the small-town family run restaurants," she said. "You can expect to hear back from me in the coming months on the policy issues under consideration and how you can provide your feedback."
According to the minister, problems with the Holidays Act have been so widespread that most employers had found themselves non-compliant at some point in the past.
"Businesses suffer because the processes and calculations of the Holidays Act are so complex many employers struggle to understand their legal obligations and even with the best intentions, have found themselves non-compliant," she said.
Employees also suffer because it was difficult for them to track if they are receiving their statutory entitlements, leading to years of underpayment, according to the minister.
"One issue that is clear is that the Act has struggled to keep up with working arrangements that differ from a standard five-day, 40-hour week," she said. "It is important that any improvements to the Holidays Act provide enduring solutions that will be responsive to constantly evolving work arrangements and business needs."
Meanwhile, Van Velden also announced that the government will soon hold a public consultation on the decade-old Health and Safety at Work Act.
"I think it is an appropriate time we take a step back and assess whether the health and safety system is fit for purpose," the minister said.
According to Van Velden, they have heard during their campaign trail that businesses and workers alike find it hard to comply with some health and safety regulations.
"Businesses and workers need to know what their obligations are," she said. "Businesses want to keep people safe and healthy at work, but one of the things I hear consistently is that businesses just don’t know what to do in order to comply."
The minister said the government will hear from workers and business before they launch any reforms to the law.
"We need our health and safety system to be clear, to be understandable, and to be effective. I want our system to make sure businesses are focused on addressing the things that are causing workers harm, and not on compliance that serves no purpose. I want to give businesses confidence in the actions they are taking to ensure health and safety," she said.
