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Note: This Supplementary Order Paper shows amendments to the Bill that are being proposed by the Minister for the purposes of consideration in Committee of the whole House. This document does—
Explanatory note
This Supplementary Order Paper (SOP) amends the Minimum Wage (Starting-out Wage) Amendment Bill (the Bill).
Amendments to clause 4: new section 4A
The SOP proposes several technical amendments to clause 4: new section 4A, which authorises the Governor-General, by Order in Council, to prescribe 1 or more minimum starting-out rates of wages (starting-out wages) by reference to the criteria and factors specified in new section 4A(1).
The amendment to new section 4A(1)(c)(ii), which enables the length of time, being a period of not more than 6 months, that a worker has been in continuous employment to be used as a factor in prescribing starting-out wages, clarifies the policy intent that relevant continuous employment may be employment with any employer or the worker's current employer.
The amendment to new section 4A(3)(a)(i), which deals with the maximum time frame for which starting-out wages can be paid, clarifies the policy intent that if an Order in Council is made prescribing a starting-out rate by reference to a period of continuous employment that is shorter than 6 months, the employer cannot pay a worker at the starting-out rate after that period has ended.
The SOP also makes other minor and technical amendments to new section 4A(1)(c), (3)(ii), and (6).
Amendments to clause 7
The amendment to clause 7(1), which is a transitional and savings provision relating to the minimum new entrant rate, updates the provision to refer to the Minimum Wage Order 2013 because that order will revoke and replace the Minimum Wage Order 2012 on 1 April 2013.
The amendment to clause 7(2) is a drafting amendment.
Hon Simon Bridges, in Committee, to propose the amendments shown in the following document.
Hon Simon Bridges
Minimum Wage (Starting-out Wage) Amendment Bill
Government Bill
69—2
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Minimum Wage (Starting-out Wage) Amendment Act 2012.
2 Commencement
This Act comes into force on 1 May 2013.
3 Principal Act
This Act amends the Minimum Wage Act 1983 (the principal Act).
Part 1
Amendments to principal Act
4 Section 4 replaced (Prescription of minimum wages)
Replace section 4 with:
“4 Prescribed minimum adult rate of wages
“(1) The Governor-General may, by Order in Council, prescribe a minimum adult rate of wages payable to workers—
“(2) A rate prescribed under subsection (1) must be prescribed as a monetary amount.
“4A Prescribed minimum starting-out rates of wages
“(1) The Governor-General may, by Order in Council, prescribe 1 or more minimum starting-out rates of wages payable to 1 or more classes of workers who—
“(2) A rate prescribed under subsection (1) must not be less than 80% of the minimum adult rate prescribed under section 4 and may be prescribed as—
“(3) If a minimum starting-out rate is prescribed under subsection (1) by reference to a factor specified in , an employer of a worker to whom that rate applies—
“(4) To avoid doubt, if more than 1 minimum starting-out rate prescribed under subsection (1) applies to a worker, only the higher or the highest rate applies.
“(5) For the purposes of subsection (1)(c)(i), a worker is to be treated as having been continuously paid a specified social security benefit—
“(6) In this section,—
“continuous employment, in relation to a worker,—
“continuously paid 1 or more specified social security benefits, in relation to a worker to whom an Order in Council made under section 4A subsection (1)(c)(i) applies, includes any time spent by the worker on 1 or more specified social security benefits before the worker reached the age defined in the order
“specified social security benefit means any of the following benefits paid or payable under the Social Security Act 1964:
“4B Prescribed minimum training rate of wages
“(1) The Governor-General may, by Order in Council, prescribe a minimum training rate payable to 1 or more classes of workers who—
“(c) are employed under contracts of service under which they are required to undergo training, instruction, or examination (as specified in the order) for the purpose of becoming qualified for the occupation to which their contract of service relates.
“(2) A rate prescribed under subsection (1) must not be less than 80% of the minimum adult rate prescribed under section 4 and may be prescribed as—
5 Section 5 amended (Annual review of minimum wages)
In section 5(1), replace “section 4”
with “section 4, 4A, or 4B”
.
Part 2
Miscellaneous provisions
6 Consequential amendments to Accident Compensation Act 2001
(1) This section amends the Accident Compensation Act 2001.
(2) In Schedule 1, Part 2, replace clause 42(3)(a)(i) with:
(3) In Schedule 1, Part 2, replace clause 42(3)(b)(i) with:
7 Transitional and savings provision relating to minimum new entrant rate
(1) This section applies to a worker who, immediately before the commencement of this Act, was entitled to be paid wages by his or her employer in accordance with the minimum new entrant rate prescribed in clause 5 of the Minimum Wage Order 2012 2013.
(2) On and after the commencement of this Act,—
(3) In subsection (2), employment includes employment undertaken by the worker—