Employment law change, but no shakeup under Nats

National has confirmed if it is elected to power it will largely retain the Employment Relations Act (ERA).

National leader John Key told a business breakfast meeting in Wellington the basic principles of the ERA – such as that of good faith bargaining – would remain in place.

"We are staying with the Employment Relations Act. We are not going back to the Employment Contracts Act," Mr Key said.

Mr Key said his party's industrial relations policy would keep the ERA in place, but introduce a 90 day trial period for firms with fewer than 20 staff.

"Good-faith provisions will still apply, as will rights to sick leave, holidays, and health and safety provisions. Rules of natural justice and human rights legislation will apply. Mediation will be available in disputes, and employers won't be able to hire and fire the same employee every 90 days," Mr Key said.

National did not see the 90 day trial period as making it easier for employers to fire people, but easier to hire them.

Every OECD country, except Denmark, had a probationary period. National has dropped its 2005 policy of restricting union access to work places, but will allow workers to bargain collectively without having to belong to a union.

Mr Key said National would also keep four weeks annual leave, but allow employees to trade the fourth week for cash.

This could only be at the employee's request and could not be raised in negotiations for an agreement.

A National government would also:

* Retain the Mediation Service but ensure it was properly resourced with properly qualified mediators;

* Require the Employment Relations Authority to act judicially in accordance with the principles of natural justice, including the right to be heard, and the right to cross examine before an impartial referee;

* Allow injunctions and important legal questions to be heard in the first instance in the Employment Court, and allow a general right of appeal to the Court of Appeal; and

* Appoint a working party to review the Holidays Act, especially the issue of relevant daily pay.

- NZPA