Zero-hour contracts banned in New Zealand

Zero-hour contracts have been outlawed in New Zealand after parliament unanimously passed a bill to ban the controversial practice.

Political parties across the board supported the ban, which is being hailed as a major victory for minimum wage workers, particularly in the fast-food industry.

Mike Treen, leader of the Unite union, who led the charge, said the move was being closely followed by fast-food workers worldwide, many of whom banded behind the New Zealand workers campaign last year.

“It was like we had God sitting on our shoulder helping us out – it just went wild,” said Treen.

“This is an incredible victory and I am still shocked by it to be honest – the fact that the ban was unanimously supported in parliament is pretty unbelievable.”

Treen estimates there are “hundreds of thousands of workers” employed on zero-hour contracts in New Zealand, which means employers do not have to guarantee minimum hours of work per week, and often expect employees to be available 24/7.

The contracts have also caused controversy in the UK where the country’s biggest sports retailer, Sports Direct, has 15,000 employees on zero-hour deals.

In New Zealand they are typically used by fast-food chains, as well as by cinema groups, security firms and cleaning companies, said Treen.

The bill, which will take effect on 1 April, stipulates that employers must guarantee a minimum number of hours work each week, and workers can refuse extra hours without repercussions.

“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,” said Michael Woodhouse, the workplace relations and safety minister.

“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.”

Hannah Shelton-Agar, 23, is employed on a zero-hour contract at Hoyts cinema in Auckland.

She usually works between 10-25 hours a week, and said she is “ecstatic” about the ban.

“This is going to change people’s lives. It is such a relief for so many people to know they will no longer risk having zero dollars at the end of the week. It also means workers feel more included in the workplace, and valued for their contribution.”

The move to ban zero-hour contracts gained huge momentum around New Zealand last year when it was picked up by TV3’s Campbell Live current affairs show, which has since been axed.

Campaigners said the exposure and interest of Campbell Live galvanised opposition to zero-hour contracts nationwide.

“Campbell was a pivotal, campaigning force for us,” said Treen. “I said in the negotiations, you might beat the union but you can’t beat the union and Campbell Live.”