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New Zealand's new labor bill raises dismissal claim threshold to $200K, redefines income, and weakens worker protections, sparking criticism.
New Zealand’s Employment Relations Amendment Bill, backed by the government after a Select Committee report, proposes major changes to labor law, including raising the income threshold for unjust dismissal claims to $200,000 and expanding the definition of income to include bonuses and share schemes.
It refines the gateway test for contractor status, particularly for platform-based work, and allows businesses to designate workers as non-employees even if not formally classified as such.
The bill aims to boost labor market flexibility and reduce compliance costs, but critics warn it undermines worker protections by weakening the personal grievance system, eliminating automatic 30-day job security, and reducing recourse for high-earning workers.
The government plans to advance the bill in early 2026.
El nuevo proyecto de ley laboral de Nueva Zelanda eleva el umbral de reclamación de despido a $200,000, redefine los ingresos y debilita las protecciones de los trabajadores, lo que provocó críticas.