'This law damages employer-employee relationships and discourages job creation'
Businesses across New Zealand have called on the government to reconsider its move to criminalise wage theft as it could strain employer-employee relationships.
Rajesh Goyal, president of the Auckland Indian Retailers Association, told Radio New Zealand that the move was "unnecessary and harmful."
"This law damages employer-employee relationships and discourages job creation," Goyal told RNZ.
"We urge the government to reconsider this law and focus on fair, practical solutions that support both workers and businesses."
According to Goyal, there are already existing laws that provide solutions to wage theft.
"Involving the police in minor disputes — sometimes as little as \$100 — is an unnecessary burden on law enforcement and businesses," he said.
"Wage issues should be handled through employment dispute channels, not the criminal justice system."
Jaspreet Kandhari, general secretary of the New Zealand Indian Business Association, echoed a similar warning on the legislation's impact on workplace relationships.
"The law could strain employer-employee relationships, given that the balance has tilted too far in favour of employees," Kandhari said as quoted by RNZ.
The general secretary stressed that while they agree that wage theft is not acceptable, the government's legislation is at risk of getting misused or abused.
According to Kandhari, employees could potentially make false allegations about wages, which has happened before.
"The burden is all on the employer to prove their innocence," he said as quoted by RNZ. "Even if it is not proved in the court, it would add unnecessary burden to the employer and that would actually be very intimidating for the employer."
The Crimes (Theft by Employer) Amendment Bill was passed by the government in March, effectively criminalising employers' intentional failure to pay money to employees.
"We are sending a strong message that exploiting workers will not be tolerated and that we must create a labour market where all workers receive the pay they deserve and are entitled to for their hard work," said Labour MP Camilla Belich, who advocated for the legislation.
