A bill is being considered by Parliament (The Employment Relations (Allowing Higher Earners to Contract out of Personal Grievance Provisions) Amendment Bill), which would allow higher income earners to contract out of the personal grievance provisions of the Employment Relations Act 2000 (“the Act”).
If the Bill passes, it would mean that employees who earn a gross salary over $150,000 would be able to contract out of the personal grievance provisions. The intention of the Bill is to remove personal grievances as a remedy for higher earning employees. The ability to contract out, would of course need to be on terms agreed to by the employee.
The idea behind the Bill is that well paid senior executives are not vulnerable workers that need the government’s protection. Allowing for pre-agreed and negotiated exit arrangements for those employees who are skilled enough (as the National Government sees it) to command a high salary and should be capable of negotiating agreements themselves.
The Bill has now passed its first reading in parliament.