New employment legislation which includes, among other things, provisions for zero hours contracts, has been tabled in New Zealand’s Parliament, reports radionz.co.nz.

In relation to zero hours contracts the bill prohibits certain practices, such as employers no longer being able to require workers to work over and above contracted hours, unless the workers have the right of refusal.

They would also not be able to cancel shifts without reasonable notice or compensation, or put unreasonable restrictions on employees working elsewhere.

Employers would also be prohibited from making unreasonable deductions from employees' wages.

The bill includes a requirement that when parties agree to a set number of hours, that would have to be included in the employment contract.

Workplace Relations Minister Michael Woodhouse said zero hours contracts were not fair: "The fundamental principle is that the employer wasn't being asked to commit but the employee was. We've always thought that that's been unfair and that will go under this bill when it's passed."

Mr Woodhouse said the bill strengthened the enforcement of employment standards, by including tougher sanctions for employers who intentionally breach the standards, increased tools for labour inspectors, and clearer record keeping requirements.

"Protecting vulnerable workers and tackling harmful anti-competitive behaviour to create a level playing field for all businesses is a priority for the Government and this bill reflects that," he added.

The bill, however, has been criticised by New Zealand’s Council of Trade Unions (CTU).

CTU Secretary Sam Huggard said unions and their members are very concerned about the impact it will have on working New Zealanders.

“These proposed changes actually make zero hours contracts more likely for many. Previously, an employer took a legal risk by using zero hours contracts. Now they will legally be able to demand that worker is available for work without guaranteeing any fixed hours of work, per day, per week, or at all.”

“Sure the employer needs to reimburse the worker for being available but the law doesn’t specify a minimum rate; which means someone could be required to be available to work 24 hours a day 7 days a week and only be reimbursed one dollar.”

“We are really concerned that bad employers could use this law to treat their workers worse, and that more bosses will start using zero hour contracts.”

The CTU has stated that it opposes these changes and is asking the government to go back to the drawing board.