Employment Relations (Breaks, Infant Feeding, and Other Matters) Act 2008 – KiwiSaver-related amendments

Submission

(17 – Association of Superannuation Funds of New Zealand)

Provisions in the Employment Relations (Breaks, Infant Feeding, and Other Matters) Act 2008 – which make it grounds for personal grievance if an employee is adversely affected because they are a member of KiwiSaver scheme – should be amended to limit the scope of these provisions to situations where an employee’s salary or wages are reduced because of compulsory employer contributions.

Comment

These provisions were repealed in the Employment Relations Amendment Act 2008. In addition, section 101B of the KiwiSaver Act was amended by the Taxation (Urgent Measures and Annual Rates) Act 2008 to ensure that compulsory employer contributions are in addition to an employee’s salary or wages when an employee joins KiwiSaver or changes employment. However, employers and employees have the ability as part of good faith negotiations to contract out of this general requirement.

Recommendation

That the submission be declined.