Parties urged to back small businesses

“ACT is calling on all parties to back small businesses and support a practical change to help employers and employees avoid costly unfair dismissal or personal grievance claims,” says ACT’s Small Business spokesperson Laura McClure.

“My Member’s Bill comes before Parliament for its second reading today. I’m grateful National has indicated its support, and while New Zealand First have indicated they will change their vote to not support, I hope they can get behind small businesses and support the Bill through to its final reading.

“Sometimes when one New Zealander employs another, it simply doesn’t work out. Relationship breakdowns, poor performance, or changing personal circumstances can make an employment relationship unsustainable.

“In some cases, an employer would happily offer an employee compensation to leave, and the employee would happily accept. But current law makes it unnecessarily risky to even start that conversation.

“Negotiations generally only take place once a dispute has already developed and a personal grievance claim has been raised. An employer can expose themselves to a grievance simply by trying to discuss alternative employment options.

“This is particularly important for small businesses. A personal grievance can mean thousands of dollars in legal costs, months of stress, and an enormous distraction from actually running the business.

“Small businesses shouldn’t need a lawyer just to have a difficult conversation.

“My Bill would introduce protected negotiations, allowing an employer and employee to discuss ending an employment relationship by mutual agreement, including an agreed compensation payment.

“There is no reason our laws cannot treat people like adults and provide the opportunity to reach a fair agreement, shake hands, and move on before a difficult employment relationship turns into an expensive legal dispute.

“Similar provisions have operated in the United Kingdom. This is a balanced reform that protects employees’ right to say no while giving employers a safer way to resolve situations that clearly are not working.

“National deserves credit for supporting the Bill. I hope New Zealand First and other parties will listen to small businesses and support it at second reading too.”