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Businesses happy over minimum wage Bill

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Wellington, August 24, 2016

BusinessNZ supports the decision by Parliament today to defeat the Minimum Wage (Contractor Remuneration) Amendment Bill.

The Bill would have imposed regulations on contracts for services, requiring those in contracting arrangements to be paid the equivalent of the minimum wage or higher.

BusinessNZ Chief Executive Kirk Hope says the opposition by many in business to the Bill was not about any reluctance to pay the minimum wage, as business is supportive of appropriate pay and minimum wage regulation.

“The concern was about the fact that the proposed legislation would have meant Government effectively setting a minimum rate for contracts for services in order to address concerns about poor remuneration practice.

“But there are already remedies for exploitation and breach of minimum wage obligations in situations where contractors might be better classified as employees.

“Peter Dunne is to be congratulated for his recognition of this point, in voting down the Bill. While business did not support the Bill because we believe there are already remedies available, it does serve to remind us that we need to be vigilant about poor pay practice and its effect on workers.”

“BusinessNZ, EMA, Business Central, the Canterbury Employers Chamber of Commerce and Employers Otago Southland and our many business members are pleased at the responsiveness of our Members of Parliament to the issues contained in the Bill.”

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