Govt considers changes to ERA cases

The Government is considering changes the rules around personal grievance cases to the Employment Relations Authority (ERA).

Prime Minister John Key highlighted the issue in his opening statement to Parliament when he said legislative changes were on the cards.

The Dominion Post reported today reported that changes would aim to eliminate frivolous claims and control advocates who took on cases for no fee, unless they won.

Labour Minister Kate Wilkinson said Cabinet was yet to consider a discussion document and questionnaire which would canvass issues.

"You hear stories anecdotally from employers who say, 'Oh well, it's just too hard we will just pay some money to make it go away'. And that's not justice," she said.

She said the no-fee advocates often managed to get pay outs even if the case did not merit it.

The ERA got 2500 applications a year, with 1000 going to a first stage investigative meeting.

Council of Trade Unions (CTU) president Helen Kelly said the no-fee advocates tended to operate among non-unionised workers and moves to regulate them would not concern the CTU.

However it was concerned that workers retained rights to fair procedures and natural justice and said remedies were already too low and few cases were actually taken.

Business NZ chief executive Phil O'Reilly said businesses found the system overly bureaucratic.

The Government is also reviewing the law covering vulnerable workers, mostly in cleaning, catering and laundry companies, whose jobs are protected if a contract changes hands.

- NZPA