Contractor Bill confused

Contractor Bill confused

BusinessNZ says a new Bill coming up forvote in Parliament is confused.  The ContractorBill* could be passed into law next week, as a result of a vote switch by MPPeter Dunne.

BusinessNZsays the Contractor Bill aims to pay contractors a minimum wage, but isbased on a confusion and would end up harming contractors instead. 

The proposedrestriction on contracts would make many contracts unworkable and would cause confusionand uncertainty in industries using contracts for services, including building,construction, manufacturing, forestry, cleaning services, transport anddelivery and many others.

BusinessNZChief Executive Kirk Hope says the Contractor Bill assumes a contractor alwayshas only one contract with one client, and assumes that the single clientshould be paying an equivalent of the minimum wage or more.

“But most contractors provide their services to many clients,not just one.  For example, anelectrician providing a mix of different services to multiple clients – over aworking week, the electrician might engage with many different businesses orclients, to earn a combined total income well above the minimum wage.

“The Contractor Bill also assumes that many contractorsare actually employees and so should get minimum wage protections – it assumesthey have agreed to an illegal contract. But there is already legislation to protect people who are illegallyengaged as contractors so the Contractor Bill is not needed for this.

“The Contractor Bill would be bad for the economyand would harm contractors’ ability to work and earn.

“The Bill is suddenly in the position of possiblybecoming law as early as next week – without there being any public discussionon it – as a result of a recent decision to switch vote by MP Peter Dunne.

“This is a poor Bill which would result in thestate setting minimum prices for contracts for services.”

 

* MinimumWage (Contractor Remuneration) Amendment Bill

 

KirkHope explains why the Contractor Bill is flawed  

Contact:

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17 Aug, 2016

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