New Zealand passes 'controversial' workplace law questioned by workers

New Zealand on Tuesday passed controversial pro-business workplace law changes that unions have criticised as "extreme anti-worker legislation" that hands large employers more power.

The Employment Relations Amendment Bill introduces a new test for classifying workers as employees or contractors.

The test will likely overrule a landmark decision from the country's top court in November that Uber UBER.N drivers should be treated as employees instead of contractors.

The laws will also reduce payouts for employees found to be at fault in workplace disputes.

Workers earning more than NZ$200,000 ($120,720) will lose the right to raise unjustified dismissal claims.

"This bill is about backing business to hire with increased confidence," said Workplace Relations and Safety Minister Brooke van Velden.

"This government is committed to maximising business confidence and accelerating business growth, and today's changes advance both."

Unions described the changes as "extreme anti-worker legislation" and said the bill's passage was "the darkest day in decades for New Zealand workers' rights."

The Public Service Association said the laws would hand large employers more power and workers could be "unjustifiably dismissed and walk away with nothing."

The Workers First Union said the bill "not only protects contractor misclassification by enshrining the process in law, but it decimates the right to workplace justice and enables employers to erase the rights workers fought for decades to win."

Contractors lack employee protections such as a minimum wage, paid leave and the right to join a union.($1 = 1.6567 New Zealand dollars).

-Christine Chen/Reuters