A good policy

Brooke van Velden writes:

Cabinet has agreed to introduce an income threshold of $180,000 per annum for unjustified dismissal personal grievances, meaning employees earning above that will be unable to raise an unjustified dismissal claim.

“This policy is about offering workers and employers more choice when negotiating contracts. Employers and employees are free to opt back into unjustified dismissal protection if they choose to or negotiate their own dismissal procedures that work for them,” says Ms van Velden.

“Highly paid workers such as senior executives or technical specialists can have a significant impact on organisational performance and culture. Having a poor performing manager or executive can have big flow-on effects for the entire business and increase the risk of poor culture and low morale.

A good policy. In fact prior to the ECA, unjustified dismissal procedures only applied to those on collective union contracts.

A chief executive on $400,000 a year who loses the confidence of their board should not be able got force the board to justify their loss of confidence in court.