KEY POINTS:
Employers will no longer be allowed to pay staff who join KiwiSaver less than colleagues who do not sign up.
The Government yesterday passed a law change reversing an option allowing KiwiSaver to be considered part of total remuneration, which was added to legislation last December.
In an
unusual move, the change was passed under the Employment Relations (Breaks and Infant Feeding) Amendment Bill and was only included on Tuesday afternoon under a supplementary order paper.
The change has been driven by Labour Minister Trevor Mallard.
He announced his intentions in April amid concerns that several employers were docking the pay of their staff to cover the cost of the employer contribution despite receiving a tax credit from the Government of up to $20 a week.
That covers the 1 per cent contribution which became compulsory for employers on April 1 for those who earn up to $104,000.
Unions have welcomed the move but the Employers and Manufacturers Association has been running a billboard campaign against the change.
Engineering, Printing and Manufacturing Union spokesman Andrew Little said the changes would keep employers honest and ended the unfairness of bosses docking the pay of staff who were in KiwiSaver while pocketing the Government's tax credit. "It puts it back where it belongs, back on the employer."
But employers' association northern spokesman David Lowe said the way the change had been pushed through was an abuse of parliamentary privilege and the law change itself discriminated against the under-18s, who are not entitled to employer contributions, and the over-65s, who are not allowed to join KiwiSaver.
"All those workers not in KiwiSaver, and some are not allowed to join it or can't afford it, they have to be paid less - that's just not fair." The association has also accused Mallard of going further than originally indicated by making any breach of the law a grounds for personal grievance.
"Now he is opening up the prospect for employees ... [using it] as an excuse for personal grievance claims."
He said the details of the legislation were made known only on Tuesday.
"The public had no opportunity to comment on it."
The law change means from Tuesday, September 2, employers cannot use total remuneration packages, but those who have already signed deals which have come into force must wait until they come up for renewal.
