New Zealand Passes Controversial Pro-Business Employment Law

New Zealand has enacted the Employment Relations Amendment Bill, causing an uproar among unions who label it as anti-worker. The new law redefines the classification of workers and limits employee rights, sparking debate over its potential effects on worker protections and labor rights.

New Zealand's government passed the controversial Employment Relations Amendment Bill on Tuesday, sparking significant backlash from unions and workers' rights groups. The legislation, described by some as "extreme anti-worker," shifts the power balance, handing more control to large employers.

The bill introduces a revised test to classify workers, likely nullifying a past Supreme Court ruling that favored workers, particularly in designating Uber drivers as employees. It also reduces potential compensation for employees found at fault in workplace disputes and eliminates the right for highly paid workers to contest unfair dismissals.

Critics argue the bill undermines decades of progress in workers' rights, with unions highlighting the potential for increased misclassification of workers as contractors—a status that excludes protections like minimum wage and paid leave. The government defends the changes as essential to boosting business confidence and economic growth.

(With inputs from agencies.)