An association representing the interests of businesses fears plans to introduce more redundancy rights would hurt, not help, small employers.
Labour Party spokesperson on labour issues Trevor Mallard promised a law change at a forum in Wellington on Thursday.
The plans, which include a statutory minimum for redundancy compensation and notice, will go out for public consultation next year.
Northern Employers and Manufacturers' Association chief executive Alasdair Thompson says this is the very worst time for such a promise.
He says it will only hasten the closure of struggling businesses.
But Engineering, Printing and Manufacturing Union national secretary Andrew Little is in favour of the proposed change, saying it would be a timely move for the 1.5 million workers who have little or no redundancy rights.
He says this is especially so given New Zealand is entering a period where the economy is slowing down, and more people could face redundancy.