Crimes (Theft by Employer) Amendment Bill

In April this year, Labour MP Ibrahim Omer’s members bill, Crimes (Theft by Employer) Amendment Bill (Bill), was drawn from the ballot box. The Bill seeks to amend the Crimes Act 1961 to clarify that for an employer to intentionally withhold wages from an employee is theft, and thus a criminal offense.
Comments to date include that provision already exists to address situations where wage theft occurs. However, the Bill’s Explanatory Note states “Currently, offences relating to theft by a person in a special relationship are insufficient to account for wage theft by employers. Existing processes are too complex, and can be a deterrent for those that are victims of wage theft.”, and that “Workers deserve the codification of their rights within the law.” As such, a key focus of this Bill is “to create a simplified criminal offence directly applicable to employees’ rights to payment as already prescribed in law.”
The question of how prevalent is wage theft in New Zealand, and hence the necessity of this Bill, can in part be addressed by a Ministry of Business, Innovation and Employment report in 2019, which looked into the exploitation of migrant workers in New Zealand. The report stated that, in relation to migrant workers, “It was suggested by a number of informants in this study that exploitation is “endemic” in New Zealand.”, and that one of the key types of exploitation identified included the underpayment or non-payment of wages. These findings are not peculiar to New Zealand, a quick internet search will reveal that this same scenario plays out across the globe.
In his maiden speech in 2020, Ibrahim Omer related events from his difficult journey as a refugee from Eritrea, and how when he arrived in New Zealand he felt he had finally found a safe haven. However, in subsequent accounts of his work experience in New Zealand he recounted how he fell victim to wage theft and also struggled in low wage-earning employment. These experiences were no doubt a driver in the conception of this Bill.
The Bill would introduce new penalties for employers convicted of wage theft. An individual employer could face a penalty of up to one year imprisonment, or a maximum fine of $5,000, or both. In any other case, such as a company, a fine not exceeding $30,000 would apply.” Compared to other countries the penalties are not heavy. For example, in Victoria, for a serious contravention (intentional under/non-payment) employers can be fined up to $218,088 or 10 years in prison, and fines for companies up to $1,090,440.
The Council of Trade Unions has voiced its support of the Bill, however, what support it will receive across the House is another matter, with National and Act already signalling that they are not likely to support the Bill.