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DSPANZ provided a submission on the Employment Relations (Restraint of Trade) Amendment Bill on 18 September raising feedback on the proposed operationalisation of the restraint of trade provisions. 

In this submission we provided feedback on the proposed operationalisation of the restraint of trade provisions, specifically about introducing the term “average weekly earnings”. Raising concerns that introducing a new term can cause unnecessary confusion and potential incorrect usage.

The views we have put forward are:

  • Simply define the term “average weekly earnings” by using the term “weekly earnings” to avoid confusion with the same term used in the Holidays Act 2003. 
  • Utilise existing calculations and values already used by employers and held in payroll systems, rather than introduce new calculations.
  • Clarification on whether compensation payable for restraint of trade provisions are included in Gross Earnings, in the calculation of Kiwisaver and clarification on the date that employment ends is requested.
  • Establish a MBIE representative for early engagement to collaborate with payroll software providers on payroll policy matters.

Access the full submission here

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