General policy statement

The purpose of this Bill is to restore the capacity for the Governor-General to institute differing levels of minimum wages for youth and other workers in order to deal with the growing problem of youth unemployment. From the date of the abolition of youth rates up to the December 2009 quarter, almost 20,000 young people have lost their jobs. At this point, the unemployment rate amongst minority groups is particularly high, including a rate of 38.7% amongst Māori youth.

Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 provides that the Act comes into force 30 days after the date on which it receives the Royal assent.

Clause 3 provides that the Bill amends the Minimum Wage Act 1983 (the principal Act).

Clause 4 is the purpose clause.

Clause 5 provides for the repeal of section 4 and substituting of a new power that allows the Governor-General by Order in Council to prescribe different minimum wages to different classes of workers defined by age.

Clause 6 provides for consequential amendments to the Minimum Wage Order 2009.

Schedule amends the Minimum Wage Order 2009.