An income threshold of $180,000 a year (base salary) for unjustified dismissal personal grievances will be part of the upcoming changes to the Employment Relations Act, meaning employees earning above this amount will be unable to raise an unjustified dismissal claim.
Workplace Relations and Safety Minister Brooke van Velden says the policy will offer more choice for workers and employers when it comes to negotiating contracts. And businesses will no longer face expensive and disruptive dismissal processes if an executive hire doesn’t work out.
“Having poor performing managers or executives can have big flow-on effects for the entire business,” van Velden says. “I know there will be many hard-working Kiwis who have had to work under managers who might not have been up to the task and whose leadership might have harmed the morale or productivity of their team.”
The $180,000 income threshold will cover about 3.4% of the workforce.
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