1. INTRODUCTION AND SUMMARY

1.1 This submission on the Employment Relations Amendment Bill (the Bill) is made by The New Zealand Initiative (the Initiative), a Wellington-based think tank supported primarily by major New Zealand businesses.

1.2 The Initiative undertakes research that contributes to the development of sound public policies in New Zealand, advocating for a competitive, open, and dynamic economy and a free, prosperous, fair, and cohesive society.

1.3 Our members span the breadth of the New Zealand economy. The views expressed in this submission are those of the authors rather than the Initiative’s members.

1.4 We support the Bill’s intent to provide greater certainty for contracting parties and improve labour market flexibility. However, we consider proposed new section 6 (7) of the principal Act, defines “specified contractor,” too narrowly to capture all legitimate contracting models. Facilitation models used by platform-based businesses such as Uber and other rideshare and delivery services may be excluded.

1.5 We recommend amending proposed section 6 (7) so that it covers both direct contracting models and facilitation or agency models, ensuring the Bill achieves its purpose for the full range of contracting arrangements in the modern economy.

1.6 We also support the proposed new sections 67I and 113A, inserted by clauses 10 and 11, which remove the ability of high-income earners to bring unjustified dismissal claims, while retaining other personal grievance rights.

1.7 Both reforms will improve labour market flexibility, reduce compliance costs, and support productivity growth.