New Zealand bans zero-hours contracts

New Zealand’s parliament has voted unanimously in favor of legislation outlawing “zero-hours” employment contracts.

Zero-hours contracts, under which employers do not have to guarantee workers a minimum number of hours of work per week, have been the target of a campaign by the trade union Unite. The union estimates that hundreds of thousands of New Zealand workers are employed on a zero-hours basis, typically in minimum-wage jobs in the fast-food industry.

Michael Woodhouse, minister for workplace relations and safety, commented that: “The passing of this bill delivers on the government’s commitment to improve New Zealand’s employment law framework to encourage fair and productive workplaces without imposing unnecessary compliance costs on employers in general. The bill eliminates zero-hour contracts by getting rid of unfair employment practices where employers do not commit any hours of work, but expect employees to be available when required without compensation.”

The legislation was introduced by the governing National party and backed by the opposition Labour, Green, and Māori parties, among others.

New Zealand is believed to be the first developed country to ban zero-hours contracts.

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