Catholic youth body opposes changes to leave entitlements

In a submission to Parliament’s Education and Workforce Committee, the Logos Project expressed deep concern about how the Employment Leave Bill would affect precarious workers, especially young people, if it became law.

“Particularly, the amendments that make changes to the leave entitlements of part-time and casual workers will disproportionately affect young people who are more likely to hold casual or part-time positions,” Logos stated.

“These changes effectively reduce the amount of sick leave part-time workers are entitled to. It is also concerning that under this bill casual workers will continue to be at risk of not being able to afford to take sick leave.

“We are worried that reducing leave entitlements may incentivise employers to put vulnerable workers (e.g. young people) on part-time and casual positions, making their income situation more precarious.

“We recommend that this bill be abandoned and replaced with a bill that is more reflective of the needs of the working community,” Logos stated.

The Unite Union said the proposed changes would leave many workers worse off. Under the Bill, Unite said, “employees who regularly work overtime or pick up extra hours would receive less leave than they currently do”.

“Work completed outside of ‘contracted hours’ would no longer accrue sick leave or annual leave – a change that would disproportionately affect part-time and casual workers,” the union stated.

“The bill would also reduce how much workers are paid while on leave. If a worker takes leave for a shift where they would normally be paid more than one rate, they would be paid only the lowest rate for the entire leave period.”

Workplace Relations Minister Brooke van Velden said the revamp, which will see both annual and sick leave accumulate based on hours worked, is a win for workers, businesses and the country. The bill aims to reduce the complexity of the current Holidays Act, Radio New Zealand reported.

Ms van Velden argued the sick-leave changes for part-time workers is more proportionate and will, in the long run, increase part-time jobs in the economy.

Some workers would benefit in other ways, including those taking family violence leave and bereavement leave. New parents would also benefit, she said.

Casual employees would be paid 12.5 per cent of their hourly wage, instead of getting leave – an increase on the current 8 per cent rate under the ‘Pay As You Go’ scheme.

All sectors would move to this new system two years after the bill becomes law, with the exception of schools – which will remain on the current system for five to 10 years, because of the need to replace schools’ payroll systems.

FULL STORY

The Logos Project submission Employment Leave Bill (The Logos Project/NZ Parliament)

Employment Leave Bill Will Cut Workers’ Leave and Pay (Unite Union)

Part-time workers to get less sick leave as law changed (Radio New Zealand)