Minimum Wage Amendment Bill

Minimum Wage Amendment Bill EXPLANATORY NOTE GENERAL POLICY STATEMENT This Bill amends the Minimum Wage Act 1983 to require an Order in Council to be made prescribing a minimum rate of wages of not less than $15 per hour to be payable on and after 1 April 2013. CLAUSE BY CLAUSE ANALYSIS Clause 1 is the Title clause. Clause 2 is the commencement clause. It provides for the Bill to come into force on the day after the date on which it receives the Royal assent. Clause 3 sets out the purpose of the Bill. Clause 4 states that the Minimum Wage Act 1983 is the principal Act. Clause 5 inserts new clause 4A in the principal Act. New clause 4A requires an Order in Council to be made under section 4 of the principal Act prescribing a minimum rate of wages of not less than $15 per hour. It requires the Order in Council to be made by no later than 31 March 2013 and to come into force on 1 April 2013. The effect of the Order in Council is that the minimum rate of wages of not less than $15 per hour will be payable on and after 1 April 2013 to the people referred to in section 4(1)(a) to (c) of the Act (which include workers who are 16 years of age or older and workers who are new entrants). New clause 4A also clarifies that the minimum rate of wages prescribed by the Order in Council applies despite anything to the contrary in any enactment, rule of law, award, collective agreement, determination, or contract of service. The Parliament of New Zealand enacts as follows: 1 Title This Act is the Minimum Wage Amendment Act 2012 . 2 Commencement This Act comes into force on the day after the date on which it receives the Royal assent. 3 Purpose The purpose of this Act is to amend the Minimum Wage Act 1983 to provide for a minimum rate of wages of $15 per hour to apply on and after 1 April 2013. 4 Principal Act This Act amends the Minimum Wage Act 1983 (the principal Act ). 5 New section 4A inserted (Transition to minimum $15 per hour minimum wage) After section 4, insert: 4A Transition to minimum $15 per hour minimum wage 1 An Order in Council must be made under section 4 prescribing a minimum rate of wages of not less than $15 per hour. 2 The Order in Council— a must be made by no later than 31 March 2013 ; and b must come into force on 1 April 2013 . 3 The minimum rate of wages prescribed by the Order in Council made in accordance with subsection (1) applies despite anything to the contrary in any enactment, rule of law, award, collective agreement, determination, or contract of service.