In preparing for its Covid-19 recovery phase, New Zealand enacted temporary legislation to facilitate economic sustainability and mitigate unnecessary and potentially longer-term impacts on society.

The Covid-19 Response (Further Management Measures) Legislation Bill amended nearly 50 pieces of legislation as detailed in its explanatory note.

Amendments relate to the general running of businesses and societies as well as procedural requirements on collective agreements. Amendments fell into two broad categories.  The first category, included:

• changes to insolvency and corporate law to increase the prospects of businesses surviving;
• changes to commercial property law to support businesses and commercial landlords to manage situations where businesses are unable;
• changes to parental leave regulation in order to allow workers entitled to parental leave to temporarily return to work without being disadvantaged by losing entitlements to leave and payments;
• changes to the Commerce Act 1986 to authorise conduct that may technically breach the restrictions on cartel conduct;

The second category of amendments covers processes related to collective agreements, including:

• “deferring statutory deadlines and other minor exemptions where compliance is not possible or unreasonably burdensome”, for instance requirements to ratify collective agreements within a certain period following settlement of negotiations; 
• “mitigating problems with legislative compliance due to physical presence requirements and other technological reasons. This included such things as allowing for electronic voting on ratification of collective agreements, and the signing of agreements and meeting minutes”.

Business NZ and the NZ Council of Trade Unions rapidly understood the need to modify the legislation because of the impossibility to comply with the usual timeframe and the impracticability of meeting in person. Changes related to collective bargaining were largely the result of successful joint employer and union advocacy. 

This temporary legislation is intended to expire in two years time, unless terminated earlier by the Parliament, which is required to confirm the status of the legislation each month. Lacking such a positive decision, the legislation expires immediately and laws revert to their pre Covid-19 states. In any case, it can be reactivated should a second wave of Covid-19 appear.

BusinessNZ’s Manager of Employment Relations, Policy, Paul Mackay worked directly with government and union officials on the drafting of the legislation.  He said: “this exercise illustrates the value of our long lasting good relationship with the trade unions and the common wish to move ahead of this crisis to ensure full economic and social recovery”.