Employment Relations Act 2000 No 24 (as at 16 November 2009), Public Act

Reprint
as at 16 November 2009

Crest

Employment Relations Act 2000

Public Act2000 No 24
Date of assent19 August 2000
Commencementsee section 2

Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

This Act is administered by the Department of Labour.


Contents

Good faith employment relations

Interpretation

Registration of unions and related matters

Union's right to represent members

Access to workplaces

Union meetings

Registrar of Unions

Good faith

Codes of good faith

Bargaining

Facilitating bargaining

Determining collective agreement if breach of duty of good faith

Collective agreements

Undermining collective bargaining or collective agreement

Employee's statutory right to make request

Duties of employer

Resolving disputes

Review of Part

Interpretation

Lawfulness of strikes and lockouts

Suspension of employees during strikes

Essential services

Procedure to provide public with notice before strike or lockout in certain passenger transport services

Employer's liability for wages during lockout

Performance of duties of striking or locked out employees

Record of strikes and lockouts

Jurisdiction of Employment Court

Codes of employment practice

Code of good faith for public health sector

Object

Personal grievances

Remedies in relation to personal grievances

Disputes

Recovery of wages

Penalties

Compliance orders

Enforcement of order

Limitation period for actions other than personal grievances

Mediation services

Employment Relations Authority

Employment Court

Judges of the court

Review of proceedings

Appeals

Special provision in respect of appeals

Other appeals

Miscellaneous provisions

Labour Inspectors

Demand notices

Actions to recover wages or holiday pay, etc

Powers

Representation

Miscellaneous provisions

Transitional provisions


1 Title
  • This Act is the Employment Relations Act 2000.

2 Commencement
  • This Act comes into force on 2 October 2000.

Part 1
Key provisions

3 Object of this Act
  • The object of this Act is—

    • (a) to build productive employment relationships through the promotion of good faith in all aspects of the employment environment and of the employment relationship—

      • (i) by recognising that employment relationships must be built not only on the implied mutual obligations of trust and confidence, but also on a legislative requirement for good faith behaviour; and

      • (ii) by acknowledging and addressing the inherent inequality of power in employment relationships; and

      • (iii) by promoting collective bargaining; and

      • (iv) by protecting the integrity of individual choice; and

      • (v) by promoting mediation as the primary problem-solving mechanism; and

      • (vi) by reducing the need for judicial intervention; and

    • (b) to promote observance in New Zealand of the principles underlying International Labour Organisation Convention 87 on Freedom of Association, and Convention 98 on the Right to Organise and Bargain Collectively.

    Section 3(a): amended, on 1 December 2004, by section 4(1) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 3(a)(i): substituted, on 1 December 2004, by section 4(2) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 3(a)(ii): amended, on 1 December 2004, by section 4(3) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

Good faith employment relations

4 Parties to employment relationship to deal with each other in good faith
  • (1) The parties to an employment relationship specified in subsection (2)—

    • (a) must deal with each other in good faith; and

    • (b) without limiting paragraph (a), must not, whether directly or indirectly, do anything—

      • (i) to mislead or deceive each other; or

      • (ii) that is likely to mislead or deceive each other.

    (1A) The duty of good faith in subsection (1)—

    • (a) is wider in scope than the implied mutual obligations of trust and confidence; and

    • (b) requires the parties to an employment relationship to be active and constructive in establishing and maintaining a productive employment relationship in which the parties are, among other things, responsive and communicative; and

    • (c) without limiting paragraph (b), requires an employer who is proposing to make a decision that will, or is likely to, have an adverse effect on the continuation of employment of 1 or more of his or her employees to provide to the employees affected—

      • (i) access to information, relevant to the continuation of the employees' employment, about the decision; and

      • (ii) an opportunity to comment on the information to their employer before the decision is made.

    (1B) Subsection (1A)(c) does not require an employer to provide access to confidential information if there is good reason to maintain the confidentiality of the information.

    (1C) For the purpose of subsection (1B), good reason includes—

    • (a) complying with statutory requirements to maintain confidentiality:

    • (b) protecting the privacy of natural persons:

    • (c) protecting the commercial position of an employer from being unreasonably prejudiced.

    (2) The employment relationships are those between—

    • (a) an employer and an employee employed by the employer:

    • (b) a union and an employer:

    • (c) a union and a member of the union:

    • (d) a union and another union that are parties bargaining for the same collective agreement:

    • (e) a union and another union that are parties to the same collective agreement:

    • (f) a union and a member of another union where both unions are bargaining for the same collective agreement:

    • (g) a union and a member of another union where both unions are parties to the same collective agreement:

    • (h) an employer and another employer where both employers are bargaining for the same collective agreement.

    (3) Subsection (1) does not prevent a party to an employment relationship communicating to another person a statement of fact or of opinion reasonably held about an employer's business or a union's affairs.

    (4) The duty of good faith in subsection (1) applies to the following matters:

    • (a) bargaining for a collective agreement or for a variation of a collective agreement, including matters relating to the initiation of the bargaining:

    • (b) any matter arising under or in relation to a collective agreement while the agreement is in force:

    • (ba) bargaining for an individual employment agreement or for a variation of an individual employment agreement:

    • (bb) any matter arising under or in relation to an individual employment agreement while the agreement is in force:

    • (c) consultation (whether or not under a collective agreement) between an employer and its employees, including any union representing the employees, about the employees' collective employment interests, including the effect on employees of changes to the employer's business:

    • (d) a proposal by an employer that might impact on the employer's employees, including a proposal to contract out work otherwise done by the employees or to sell or transfer all or part of the employer's business:

    • (e) making employees redundant:

    • (f) access to a workplace by a representative of a union:

    • (g) communications or contacts between a union and an employer relating to any secret ballots held for the purposes of bargaining for a collective agreement.

    (5) The matters specified in subsection (4) are examples and do not limit subsection (1).

    (6) It is a breach of subsection (1) for an employer to advise, or to do anything with the intention of inducing, an employee—

    • (a) not to be involved in bargaining for a collective agreement; or

    • (b) not to be covered by a collective agreement.

    Section 4(1A): inserted, on 1 December 2004, by section 5(1) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 4(1B): inserted, on 1 December 2004, by section 5(1) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 4(1C): inserted, on 1 December 2004, by section 5(1) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 4(4)(ba): inserted, on 1 December 2004, by section 5(2) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 4(4)(bb): inserted, on 1 December 2004, by section 5(2) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 4(6): added, on 1 December 2004, by section 5(3) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

4A Penalty for certain breaches of duty of good faith
  • A party to an employment relationship who fails to comply with the duty of good faith in section 4(1) is liable to a penalty under this Act if—

    • (a) the failure was deliberate, serious, and sustained; or

    • (b) the failure was intended to undermine—

      • (i) bargaining for an individual employment agreement or a collective agreement; or

      • (ii) an individual employment agreement or a collective agreement; or

      • (iii) an employment relationship; or

    Section 4A: inserted, on 1 December 2004, by section 6 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

Part 2
Preliminary provisions

Interpretation

5 Interpretation
  • In this Act, unless the context otherwise requires,—

    applicable collective agreement means the collective agreement that is binding on the relevant union and employer, at the relevant point in time in relation to an employee of the employer who is a member of the union

    Authority means the Employment Relations Authority established by section 156

    bargaining, in relation to bargaining for a collective agreement,—

    • (a) means all the interactions between the parties to the bargaining that relate to the bargaining; and

    • (b) includes—

      • (i) negotiations that relate to the bargaining; and

      • (ii) communications or correspondence (between or on behalf of the parties before, during, or after negotiations) that relate to the bargaining

    chief executive means the chief executive of the department

    Chief Judge means the Chief Judge of the court

    Chief of the Authority means the Chief of the Authority who holds office under section 166(1)(a)

    collective agreement means an agreement that is binding on—

    • (a) 1 or more unions; and

    • (b) 1 or more employers; and

    • (c) 2 or more employees

    compliance order means an order made by the Authority or the court under section 137 or section 139

    court means the Employment Court constituted under this Act

    coverage clause,—

    • (a) in relation to a collective agreement,—

      • (i) means a provision in the agreement that specifies the work that the agreement covers, whether by reference to the work or type of work or employees or types of employees; and

      • (ii) includes a provision in the agreement that refers to named employees, or to the work or type of work done by named employees, to whom the collective agreement applies:

    • (b) in relation to a notice initiating bargaining for a collective agreement, means a provision in the notice specifying the work that the agreement is intended to cover, whether by reference to the work or type of work or employees or types of employees

    demand notice means a demand notice issued under section 224(1)

    department, in any provision of this Act, means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of that provision

    dispute means a dispute about the interpretation, application, or operation of an employment agreement

    dwellinghouse

    • (a) means any building or any part of a building to the extent that it is occupied as a residence; and

    • (b) in relation to a homeworker who works in a building that is not wholly occupied as a residence, excludes any part of the building not occupied as a residence

    employee is defined in section 6

    employer means a person employing any employee or employees; and includes a person engaging or employing a homeworker

    employment agreement

    • (a) means a contract of service; and

    • (b) includes a contract for services between an employer and a homeworker; and

    • (c) includes an employee's terms and conditions of employment in—

      • (i) a collective agreement; or

      • (ii) a collective agreement together with any additional terms and conditions of employment; or

      • (iii) an individual employment agreement

    employment relationship means any of the employment relationships specified in section 4(2)

    employment relationship problem includes a personal grievance, a dispute, and any other problem relating to or arising out of an employment relationship, but does not include any problem with the fixing of new terms and conditions of employment

    essential service means a service specified in Schedule 1

    homeworker

    • (a) means a person who is engaged, employed, or contracted by any other person (in the course of that other person's trade or business) to do work for that other person in a dwellinghouse (not being work on that dwellinghouse or fixtures, fittings, or furniture in it); and

    • (b) includes a person who is in substance so engaged, employed, or contracted even though the form of the contract between the parties is technically that of vendor and purchaser

    individual employment agreement means an employment agreement entered into by 1 employer and 1 employee who is not bound by a collective agreement that binds the employer

    Judge means a Judge of the court; and includes a temporary Judge

    Labour Inspector means an employee of the department designated under section 223 to be a Labour Inspector

    lockout has the meaning given to it by section 82

    mediation includes mediation services provided under section 144 by the chief executive, and any other mediation services that are provided (whether by the chief executive or any other person) to help resolve employment relationship problems

    mediation services means the mediation services provided, under section 144, by the chief executive

    member of the Authority means a member of the Authority who holds office under section 166(1); and includes a temporary member who holds office under section 172

    Minister, in any provision of this Act, means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of that provision

    person intending to work means a person who has been offered, and accepted, work as an employee; and intended work has a corresponding meaning

    personal grievance or grievance has the meaning given to it by section 103

    prescribed means prescribed by regulations made under this Act

    Registrar of the court means any employee of the department designated under section 198 to act as the Registrar of the court

    Registrar of Unions means the employee of the department appointed under section 27 to be the Registrar of Unions

    strike has the meaning given to it by section 81

    union means a union registered under Part 4

    wages and time record means a wages and time record kept pursuant to section 130

    workplace means a place where an employee works from time to time; and includes a place where an employee goes to do work.

    Section 5 coverage clause paragraph (a): substituted, on 1 December 2004, by section 7(1) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 5 dwellinghouse: substituted, on 1 December 2004, by section 7(2) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 5 homeworker paragraph (b): amended, on 1 December 2004, by section 7(3) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

6 Meaning of employee
  • (1) In this Act, unless the context otherwise requires, employee

    • (a) means any person of any age employed by an employer to do any work for hire or reward under a contract of service; and

    • (b) includes—

      • (i) a homeworker; or

      • (ii) a person intending to work; but

    • (c) excludes a volunteer who—

      • (i) does not expect to be rewarded for work to be performed as a volunteer; and

      • (ii) receives no reward for work performed as a volunteer.

    (2) In deciding for the purposes of subsection (1)(a) whether a person is employed by another person under a contract of service, the court or the Authority (as the case may be) must determine the real nature of the relationship between them.

    (3) For the purposes of subsection (2), the court or the Authority—

    • (a) must consider all relevant matters, including any matters that indicate the intention of the persons; and

    • (b) is not to treat as a determining matter any statement by the persons that describes the nature of their relationship.

    (4) Subsections (2) and (3) do not limit or affect the Real Estate Agents Act 2008 or the Sharemilking Agreements Act 1937.

    (5) The court may, on the application of a union, a Labour Inspector, or 1 or more other persons, by order declare whether the person or persons named in the application are—

    • (a) employees under this Act; or

    • (b) employees or workers within the meaning of any of the Acts specified in section 223(1).

    (6) The court must not make an order under subsection (5) in relation to a person unless—

    • (a) the person—

      • (i) is the applicant; or

      • (ii) has consented in writing to another person applying for the order; and

    • (b) the other person who is alleged to be the employer of the person is a party to the application or has an opportunity to be heard on the application.

    Section 6(4): amended, on 16 November 2009, by section 173 of the Real Estate Agents Act 2008 (2008 No 66).

6A Status of examples
  • (1) In this Act, an example is only illustrative of the provision it relates to and does not limit the provision.

    (2) If an example and the provision it relates to are inconsistent, the provision prevails.

    (3) In this section, example includes any note that relates to the example.

    Section 6A: inserted, on 14 September 2006, by section 5 of the Employment Relations Amendment Act 2006 (2006 No 41).

Part 3
Freedom of association

7 Object of this Part
  • The object of this Part is to establish that—

    • (a) employees have the freedom to choose whether or not to form a union or be members of a union for the purpose of advancing their collective employment interests; and

    • (b) no person may, in relation to employment issues, confer any preference or apply any undue influence, directly or indirectly, on another person because the other person is or is not a member of a union.

    Compare: 1991 No 22 s 5

8 Voluntary membership of unions
  • A contract, agreement, or other arrangement between persons must not require a person—

    • (a) to become or remain a member of a union or a particular union; or

    • (b) to cease to be a member of a union or a particular union; or

    • (c) not to become a member of a union or a particular union.

    Compare: 1991 No 22 s 6

9 Prohibition on preference
  • (1) A contract, agreement, or other arrangement between persons must not confer on a person, because the person is or is not a member of a union or a particular union,—

    • (a) any preference in obtaining or retaining employment; or

    • (b) any preference in relation to terms or conditions of employment (including conditions relating to redundancy) or fringe benefits or opportunities for training, promotion, or transfer.

    (2) Subsection (1) is not breached simply because an employee's employment agreement or terms and conditions of employment are different from those of another employee employed by the same employer.

    (3) To avoid doubt, this Act does not prevent a collective agreement containing a term or condition that is intended to recognise the benefits—

    • (a) of a collective agreement:

    • (b) arising out of the relationship on which a collective agreement is based.

    Compare: 1991 No 22 s 7

    Section 9(3): added, on 1 December 2004, by section 8 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

10 Contracts, agreements, or other arrangements inconsistent with section 8 or section 9
  • A contract, agreement, or other arrangement has no force or effect to the extent that it is inconsistent with section 8 or section 9.

11 Undue influence
  • (1) A person must not exert undue influence, directly or indirectly, on another person with the intention of inducing the other person—

    • (a) to become or remain a member of a union or a particular union; or

    • (b) to cease to be a member of a union or a particular union; or

    • (c) not to become a member of a union or a particular union; or

    • (d) in the case of an individual who is authorised to act on behalf of employees, not to act on their behalf or to cease to act on their behalf; or

    • (e) to resign from or leave any employment on account of the fact that the other person is or, as the case may be, is not a member of a union or of a particular union.

    (2) Every person who contravenes subsection (1) is liable to a penalty under this Act imposed by the Authority.

    Compare: 1991 No 22 s 8

Part 4
Recognition and operation of unions

12 Object of this Part
  • The object of this Part is—

    • (a) to recognise the role of unions in promoting their members' collective employment interests; and

    • (b) to provide for the registration of unions that are accountable to their members; and

    • (c) to confer on registered unions the right to represent their members in collective bargaining; and

    • (d) to provide representatives of registered unions with reasonable access to workplaces for purposes related to employment and union business.

Registration of unions and related matters

13 Application by society to register as union
  • (1) A society that is entitled to be registered as a union may apply to the Registrar of Unions to be registered as a union under this Act.

    (2) An application must be made in the prescribed manner and must be accompanied by—

    • (b) a copy of the society's rules as registered under that Act; and

    • (c) a statutory declaration made by an officer of the society setting out the reasons why the society is entitled to be registered as a union.

14 When society entitled to be registered as union
  • (1) A society is entitled to be registered as a union if—

    • (a) the object or, if the society has more than 1 object, an object of the society is to promote its members' collective employment interests; and

    • (c) the society's rules are—

      • (i) not unreasonable; and

      • (ii) democratic; and

      • (iii) not unfairly discriminatory or unfairly prejudicial; and

      • (iv) not contrary to law; and

    • (d) the society is independent of, and is constituted and operates at arm's length from, any employer.

    (2) In deciding whether a society is entitled to be registered as a union, the Registrar of Unions may rely on the statutory declaration made under section 13(2)(c).

15 Registration of society as union
  • (1) The Registrar of Unions must register a society as a union if the society—

    • (a) applies, in accordance with section 13, to be registered as a union; and

    • (b) is entitled to be registered as a union.

    (2) Immediately after registering a union, the Registrar of Unions must give a certificate of registration in the prescribed form to the union.

    (3) The certificate of registration is conclusive evidence that—

    • (a) all the requirements of this Act relating to the registration of the union have been complied with; and

    • (b) on and from the date of registration stated in the certificate, the union is registered as a union under this Act.

16 Annual return of members
  • A union must deliver to the Registrar of Unions, not later than 1 June in each calendar year, an annual return of members, stating how many members it had as at 1 March in that year.

17 Cancellation of union's registration
  • (1) The Registrar of Unions may cancel the registration of a union under this Act, but only if—

    • (a) the union applies to the Registrar of Unions to cancel its registration; or

    • (b) the Authority makes an order directing the Registrar of Unions to cancel the union's registration.

    (2) The Authority may make an order for the purposes of subsection (1)(b) only if the union has ceased to comply with section 14(1).

Union's right to represent members

18 Union entitled to represent members' interests
  • (1) A union is entitled to represent its members in relation to any matter involving their collective interests as employees.

    (2) This Act does not prevent a union offering different classes of membership.

    (3) A union may represent an employee in relation to the employee's individual rights as an employee only if the union has an authority from the employee to do so given under section 236.

Access to workplaces

19 Workplace does not include dwellinghouse
20 Access to workplaces
  • (1) A representative of a union is entitled, in accordance with this section and section 21, to enter a workplace—

    • (a) for purposes related to the employment of its members; or

    • (b) for purposes related to the union's business; or

    • (c) both.

    (2) The purposes related to the employment of a union's members include—

    • (a) to participate in bargaining for a collective agreement:

    • (b) to deal with matters concerning the health and safety of union members:

    • (c) to monitor compliance with the operation of a collective agreement:

    • (d) to monitor compliance with this Act and other Acts dealing with employment-related rights in relation to union members:

    • (e) with the authority of an employee, to deal with matters relating to an individual employment agreement or a proposed individual employment agreement or an individual employee's terms and conditions of employment or an individual employee's proposed terms and conditions of employment:

    • (f) to seek compliance with relevant requirements in any case where non-compliance is detected.

    (3) The purposes related to a union's business include—

    • (a) to discuss union business with union members:

    • (b) to seek to recruit employees as union members:

    • (c) to provide information on the union and union membership to any employee on the premises.

    (4) A discussion in a workplace between an employee and a representative of a union, who is entitled under this section and section 21 to enter the workplace for the purpose of the discussion,—

    • (a) must not exceed a reasonable duration; and

    • (b) is not to be treated as a union meeting for the purposes of section 26.

    (5) An employer must not deduct from an employee's wages any amount in respect of the time the employee is engaged in a discussion referred to in subsection (4).

    Compare: 1991 No 22 ss 13, 14(1)

    Section 20(4): added, on 1 December 2004, by section 9 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 20(5): added, on 1 December 2004, by section 9 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

21 Conditions relating to access to workplaces
  • (1) A representative of a union may enter a workplace—

    • (a) for a purpose specified in section 20(2) if the representative believes, on reasonable grounds, that a member of the union, to whom the purpose of the entry relates, is working or normally works in the workplace:

    • (b) for a purpose specified in section 20(3) if the representative believes, on reasonable grounds, that the union's membership rule covers an employee who is working or normally works in the workplace.

    (2) A representative of a union exercising the right to enter a workplace—

    • (a) may do so only at reasonable times during any period when any employee is employed to work in the workplace; and

    • (b) must do so in a reasonable way, having regard to normal business operations in the workplace; and

    • (c) must comply with any existing reasonable procedures and requirements applying in respect of the workplace that relate to—

      • (i) safety or health; or

      • (ii) security.

    (3) A representative of a union exercising the right to enter a workplace must, at the time of the initial entry and, if requested by the employer or a representative of the employer or by a person in control of the workplace, at any time after entering the workplace,—

    • (a) give the purpose of the entry; and

    • (b) produce—

      • (i) evidence of his or her identity; and

      • (ii) evidence of his or her authority to represent the union concerned.

    (4) If a representative of a union exercises the right to enter a workplace and is unable, despite reasonable efforts, to find the employer or a representative of the employer or the person in control of the workplace, the representative must leave in a prominent place in the workplace a written statement of—

    • (a) the identity of the person who entered the premises; and

    • (b) the union the person is a representative of; and

    • (c) the date and time of entry; and

    • (d) the purpose or purposes of the entry.

    (5) Nothing in subsections (1) to (4) allows an employer to unreasonably deny a representative of a union access to a workplace.

    Compare: 1991 No 22 s 14(2)–(4)

22 When access to workplaces may be denied
  • (1) A representative of a union may be denied access to a workplace if entry to the premises or any part of the premises might prejudice—

    • (a) the security or defence of New Zealand; or

    • (b) the investigation or detection of offences.

    (2) A certificate given in accordance with subsection (3) is conclusive evidence that grounds exist under subsection (1) for denying entry to the premises or part of the premises.

    (3) A certificate is given in accordance with this subsection if—

    • (a) it is given by the Attorney-General; and

    • (b) it certifies, in respect of the premises or part of the premises concerned, that permitting entry under section 20 might prejudice—

      • (i) the security or defence of New Zealand; or

      • (ii) the investigation or detection of offences.

    Compare: 1991 No 22 s 15

23 When access to workplaces may be denied on religious grounds
  • A representative of a union may be denied access to a workplace if—

    • (a) all the employees employed in the workplace are employed by an employer who holds a current certificate of exemption issued under section 24; and

    • (b) none of the employees employed in the workplace is a member of a union; and

    • (c) there are no more than 20 employees employed to work in the workplace.

24 Issue of certificate of exemption
  • (1) The chief executive may, for the purposes of section 23, issue a certificate of exemption to an employer who is an individual if the chief executive is satisfied that the employer is a practising member of a religious society or order whose doctrines or beliefs preclude membership of any organisation or body other than the religious society or order of which the employer is a member.

    (2) The chief executive may revoke a certificate of exemption if—

    • (a) the employer to whom it has been issued agrees; or

    • (b) it was issued in error; or

    • (c) the chief executive is satisfied that the employer has ceased to be a person eligible to be issued with the certificate.

25 Penalty for certain acts in relation to entering workplace
  • Every person is liable to a penalty, imposed by the Authority, who, without lawful excuse,—

    • (a) refuses to allow a representative of a union to enter a workplace; or

    • (b) obstructs a representative of a union in entering a workplace or in doing anything reasonably necessary for or incidental to the purpose for entering the workplace; or

    Compare: 1991 No 22 s 14(5)

Union meetings

26 Union meetings
  • (1) An employer must allow every union member employed by the employer to attend—

    • (a) at least 1 union meeting (of a maximum of 2 hours' duration) in the calendar year 2000; and

    • (b) at least 2 union meetings (each of a maximum of 2 hours' duration) in each calendar year after the calendar year 2000.

    (2) The union must give the employer at least 14 days' notice of the date and time of any union meeting to which subsection (1) applies.

    (3) The union must make such arrangements with the employer as may be necessary to ensure that the employer's business is maintained during any union meeting to which subsection (1) applies, including, where appropriate, an arrangement for sufficient union members to remain available during the meeting to enable the employer's operations to continue.

    (4) Work must resume as soon as practicable after the meeting, but the employer is not obliged to pay any union member for a period longer than 2 hours in respect of any meeting.

    (5) An employer must allow a union member employed by the employer to attend a union meeting under subsection (1) on ordinary pay to the extent that the employee would otherwise be working for the employer during the meeting.

    (6) For the purposes of subsection (5), the union must—

    • (a) supply to the employer a list of members who attended the union meeting; and

    • (b) advise the employer of the duration of the meeting.

    (7) Every employer who fails to allow a union member to attend a union meeting in accordance with this section is liable to a penalty imposed by the Authority.

    Compare: 1987 No 77 s 57

Registrar of Unions

27 Registrar of Unions
  • (1) The chief executive may appoint an employee of the department to be the Registrar of Unions, and may appoint another employee of the department to be the Deputy Registrar of Unions.

    (2) An employee appointed under subsection (1) may also hold any other office or position in the department.

    (3) Subject to the control and direction of the Registrar of Unions, the Deputy Registrar of Unions has and may exercise all the powers, duties, and functions of the Registrar.

28 Registrar of Unions may seek directions of Authority
  • (1) The Registrar of Unions may apply to the Authority for directions relating to the exercise of his or her powers, duties, or functions under this Part.

    (2) An application must be served on all persons who, in the Registrar's opinion, are interested in the application.

29 Persons who have standing in proceedings relating to unions
  • The following persons have standing to commence or be a party to or be heard on matters within the Authority's jurisdiction that relate to a union under this Part:

    • (a) the union:

    • (b) a member of the union:

    • (c) another union with a direct interest in the proceedings:

    • (d) the Registrar of Unions:

    • (e) an employer who is directly affected by the existence of the union or its activities:

    • (f) with the leave of the Authority, any other person.

30 Offence to mislead Registrar
  • Every person commits an offence and is liable on conviction by the court to a fine not exceeding $5,000 who does or says anything, or omits to do or say anything, with the intention of misleading or attempting to mislead the Registrar of Unions.

Part 5
Collective bargaining

31 Object of this Part
  • The object of this Part is—

    • (a) to provide the core requirements of the duty of good faith in relation to collective bargaining; and

    • (aa) to provide that the duty of good faith in section 4 requires parties bargaining for a collective agreement to conclude a collective agreement unless there is a genuine reason, based on reasonable grounds, not to; and

    • (b) to provide for 1 or more codes of good faith to assist the parties to understand what good faith means in collective bargaining; and

    • (c) to recognise the view of parties to collective bargaining as to what constitutes good faith; and

    • (d) to promote orderly collective bargaining; and

    • (e) to ensure that employees confirm proposed collective bargaining for a multi-party collective agreement.

    Section 31(aa): inserted, on 1 December 2004, by section 10 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

Good faith

32 Good faith in bargaining for collective agreement
  • (1) The duty of good faith in section 4 requires a union and an employer bargaining for a collective agreement to do, at least, the following things:

    • (a) the union and the employer must use their best endeavours to enter into an arrangement, as soon as possible after the initiation of bargaining, that sets out a process for conducting the bargaining in an effective and efficient manner; and

    • (b) the union and the employer must meet each other, from time to time, for the purposes of the bargaining; and

    • (c) the union and employer must consider and respond to proposals made by each other; and

    • (ca) even though the union and the employer have come to a standstill or reached a deadlock about a matter, they must continue to bargain (including doing the things specified in paragraphs (b) and (c)) about any other matters on which they have not reached agreement; and

    • (d) the union and the employer—

      • (i) must recognise the role and authority of any person chosen by each to be its representative or advocate; and

      • (ii) must not (whether directly or indirectly) bargain about matters relating to terms and conditions of employment with persons whom the representative or advocate are acting for, unless the union and employer agree otherwise; and

      • (iii) must not undermine or do anything that is likely to undermine the bargaining or the authority of the other in the bargaining; and

    • (e) the union and employer must provide to each other, on request and in accordance with section 34, information that is reasonably necessary to support or substantiate claims or responses to claims made for the purposes of the bargaining.

    (2) Subsection (1)(b) does not require a union and an employer to continue to meet each other about proposals that have been considered and responded to.

    (3) The matters that are relevant to whether a union and an employer bargaining for a collective agreement are dealing with each other in good faith include—

    • (a) the provisions of a code of good faith that are relevant to the circumstances of the union and the employer; and

    • (b) the provisions of any agreement about good faith entered into by the union and the employer; and

    • (c) the proportion of the employer's employees who are members of the union and to whom the bargaining relates; and

    • (d) any other matter considered relevant, including background circumstances and the circumstances of the union and the employer.

    (4) For the purposes of subsection (3)(d), circumstances, in relation to a union and an employer, include—

    • (a) the operational environment of the union and the employer; and

    • (b) the resources available to the union and the employer.

    (5) This section does not limit the application of the duty of good faith in section 4 in relation to bargaining for a collective agreement.

    Section 32(1)(ca): inserted, on 1 December 2004, by section 11 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

33 Duty of good faith requires parties to conclude collective agreement unless genuine reason not to
  • (1) The duty of good faith in section 4 requires a union and an employer bargaining for a collective agreement to conclude a collective agreement unless there is a genuine reason, based on reasonable grounds, not to.

    (2) For the purposes of subsection (1), genuine reason does not include—

    • (a) opposition or objection in principle to bargaining for, or being a party to, a collective agreement; or

    • (b) disagreement about including in a collective agreement a bargaining fee clause under Part 6B.

    Section 33: substituted, on 1 December 2004, by section 12 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

34 Providing information in bargaining for collective agreement
  • (1) This section applies for the purposes of section 32(1)(e).

    (2) A request by a union or an employer to the other for information must—

    • (a) be in writing; and

    • (b) specify the nature of the information requested in sufficient detail to enable the information to be identified; and

    • (c) specify the claim or the response to a claim in respect of which information to support or substantiate the claim or the response is requested; and

    • (d) specify a reasonable time within which the information is to be provided.

    (3) A union or an employer must provide the information requested—

    • (a) direct to the other; or

    • (b) to an independent reviewer if the union or employer providing the information reasonably considers that it should be treated as confidential information.

    (4) A person must not act as an independent reviewer unless appointed by mutual agreement of the union and employer.

    (5) As soon as practicable after receiving information under subsection (3), an independent reviewer must—

    • (a) decide whether and, if so, to what extent the information should be treated as confidential; and

    • (b) advise the union and employer concerned of the decision.

    (6) If an independent reviewer decides that the information should be treated as confidential, the independent reviewer must—

    • (a) decide whether and, if so, to what extent the information supports or substantiates the claim or the response to a claim in respect of which the information is requested; and

    • (b) advise the union and employer concerned of the decision in a way that maintains the confidentiality of the information; and

    • (c) answer any questions from the union or employer that requested the information, in a way that maintains the confidentiality of the information.

    (7) Unless the union and employer otherwise agree, information provided under subsection (3) and advice and answers provided under subsections (5) and (6)—

    • (a) must be used only for the purposes of the bargaining concerned; and

    • (b) must be treated as confidential by the persons conducting the bargaining concerned; and

    • (c) must not be disclosed by those persons to anyone else, including persons who would be bound by the collective agreement being bargained for.

    (8) This section does not limit or affect the Privacy Act 1993.

    (9) Nothing in the Official Information Act 1982 (except section 6) enables an employer that is subject to that Act to withhold information that is required under section 32(1)(e).

Codes of good faith

35 Codes of good faith
  • (1) The Minister may, by notice in the Gazette,—

    • (a) approve 1 or more codes of good faith recommended by the committee appointed under section 36:

    • (b) approve 1 or more codes of good faith if section 37 applies.

    (2) The notice in the Gazette may, instead of setting out the code of good faith being approved, provide sufficient information to identify the code, specify the date on which it comes into force, and state where copies of the code may be obtained.

    (3) The purpose of a code of good faith is to provide guidance about the application of the duty of good faith in section 4 in relation to collective bargaining—

    • (a) generally; or

    • (b) in relation to particular types of situations; or

    • (c) in relation to particular parts or areas of the employment environment.

36 Appointment of committee to recommend codes of good faith
  • (1) The Minister may appoint a committee for the purpose of recommending to the Minister 1 or more codes of good faith.

    (2) The membership of the committee must comprise—

    • (a) at least 1 person who represents unions; and

    • (b) at least 1 person who represents employers' organisations; and

    • (c) such other persons as the Minister thinks fit to appoint.

    (3) The Minister must appoint the same number of persons under both subsection (2)(a) and subsection (2)(b).

    (4) The chairperson of the committee is the member appointed by the Minister to be the chairperson.

    (5) Subject to any directions given to it by the Minister, the committee may determine its own procedure.

37 Minister may approve code of good faith not recommended by committee
  • (1) The Minister may approve a code of good faith under section 35(1)(b) if—

    • (a) the committee has not recommended a code of good faith within a time specified by the Minister; or

    • (b) the Minister declines to approve a code of good faith recommended by the committee.

    (2) Before the Minister approves a code of good faith under section 35(1)(b), the Minister may consult such persons and organisations as the Minister thinks appropriate.

    (3) If the Minister declines to approve a code of good faith recommended by the committee, the Minister must notify the committee—

    • (a) that the Minister has declined to approve the code; and

    • (b) of the reasons for declining to approve the code.

38 Amendment and revocation of code of good faith
  • A code of good faith may be amended or revoked in the same manner as the code is approved.

39 Authority or court may have regard to code of good faith
  • The Authority or court may, in determining whether or not a union and an employer have dealt with each other in good faith in bargaining for a collective agreement, have regard to a code of good faith approved under section 35 that—

    • (a) was in force at the relevant time; and

    • (b) in the form in which it was then in force, related to the circumstances before the Authority or the court.

Bargaining

40 Who may initiate bargaining
  • (1) Bargaining for a collective agreement may be initiated by—

    • (a) 1 or more unions with 1 or more employers; or

    • (b) 1 or more employers with 1 or more unions.

    (2) However, bargaining for a collective agreement may not be initiated by an employer (whether alone or with other employers) unless the coverage clause will cover work (whether in whole or in part) that is or was covered by another collective agreement to which the employer is or was a party.

41 When bargaining may be initiated
  • (1) If there is no applicable collective agreement in force between a union and an employer, the union or the employer may initiate bargaining with the other at any time.

    (2) Subsection (1) applies subject to section 40(2).

    (3) If there is an applicable collective agreement in force,—

    • (a) a union must not initiate bargaining earlier than 60 days before the date on which the collective agreement expires:

    • (b) an employer must not initiate bargaining earlier than 40 days before the date on which the collective agreement expires.

    (4) However, if there is more than 1 applicable collective agreement in force that binds 1 or more unions or 1 or more employers or both that are intended to be parties to the bargaining, then—

    • (a) a union must not initiate bargaining before the later of the following dates:

      • (i) the date that is 120 days before the date on which the last applicable collective agreement expires:

      • (ii) the date that is 60 days before the date on which the first applicable collective agreement expires:

    • (b) an employer must not initiate bargaining before the later of the following dates:

      • (i) the date that is 100 days before the date on which the last applicable collective agreement expires:

      • (ii) the date that is 40 days before the date on which the first applicable collective agreement expires.

    (5) For the purposes of this section, an applicable collective agreement is in force between a union and an employer if the agreement binds employees whose work is intended to come within the coverage clause in the collective agreement being bargained for.

    Section 41(4): amended, on 1 December 2004, by section 13 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

42 How bargaining initiated
  • (1) A union or employer initiates bargaining for a collective agreement by giving to the intended party or parties to the agreement a notice that complies with subsection (2).

    (2) A notice complies with this subsection if—

    • (a) it is in writing and signed by the union or the employer giving the notice or its duly authorised representative; and

    • (b) it identifies each of the intended parties to the collective agreement; and

    • (c) it identifies the intended coverage of the collective agreement.

43 Employees' attention to be drawn to initiation of bargaining
  • An employer that initiates bargaining or that receives a notice initiating bargaining for a collective agreement must, as soon as possible but not later than 10 days after initiating the bargaining or receiving the notice, draw the existence and coverage of the bargaining, and the intended parties to it, to the attention of all employees (whether or not members of a union concerned) whose work would be covered by the intended coverage clause if the collective agreement were entered into.

44 When bargaining initiated
  • (1) Bargaining for a collective agreement is initiated,—

    • (a) if only 1 notice is required under section 42, on the day on which the notice is given:

    • (b) if more than 1 notice is required under section 42, on the day on which the last notice is given.

    (2) Consolidated bargaining for a single collective agreement under section 50 is initiated on the day by which all the unions concerned agree to the request from the employer to consolidate bargaining initiated by the unions.

45 One or more unions proposing to initiate bargaining with 2 or more employers for single collective agreement
  • (1) This section applies to—

    • (a) 1 union proposing to initiate bargaining with 2 or more employers for a single collective agreement:

    • (b) 2 or more unions proposing to initiate bargaining with 1 or more employers for a single collective agreement.

    (2) Before bargaining for the single collective agreement is initiated under section 42, the union or each union (as the case may require) must hold, in accordance with its rules, separate secret ballots of its members employed by each employer intended to be a party to the bargaining.

    (3) A secret ballot may be held only if the members of the union employed by the employer are—

    • (a) not covered by an applicable collective agreement that is in force; or

    • (b) covered by an applicable collective agreement that is in force and the secret ballot is held not earlier than 60 days before the time within which bargaining may be initiated by the union under section 41.

    (4) The result of a secret ballot of members of the union employed by an employer is determined by a simple majority of the members who are entitled to vote and who do vote.

    (5) If, at the conclusion of the secret ballots, 2 or more secret ballots have resulted in a decision in favour of bargaining for a single collective agreement, then the union proposing to initiate bargaining for a single collective agreement may initiate bargaining by giving a notice in accordance with section 42 to each employer in respect of which a secret ballot has resulted in a decision in favour of bargaining for a single collective agreement.

    (6) The notice must include the following additional information in respect of each employer whose employees voted in a secret ballot:

    • (a) the name of the employer; and

    • (b) the number of the employer's employees who are members of the union; and

    • (c) the number of those members who voted; and

    • (d) the number of those members who voted in favour of bargaining for a single collective agreement.

46 Terms of question for secret ballot
  • The question to be voted on in a secret ballot for the purposes of section 45 is—

    • (a) whether the member is in favour of bargaining for a single collective agreement, irrespective of the employers or unions concerned; or

    • (b) whether the member is in favour of bargaining for a single collective agreement with named employers or unions; or

    • (c) whether the member is in favour of bargaining for a single collective agreement except with 1 or more named employers or unions.

47 When secret ballots required after employer initiates bargaining for single collective agreement
  • (1) This section applies to—

    • (a) 2 or more unions in relation to which 1 employer has initiated bargaining for a single collective agreement:

    • (b) 1 or more unions in relation to which 2 or more employers have initiated bargaining for a single collective agreement.

    (2) A union to which subsection (1)(a) applies must hold a secret ballot of its members employed by the employer if the union considers that a majority of its members employed by the employer would disagree with bargaining for a single collective agreement.

    (3) A union to which subsection (1)(b) applies must hold a secret ballot of its members employed by an employer to which subsection (1)(b) applies if it considers that a majority of its members employed by the employer would disagree with bargaining for a single collective agreement.

    (4) A secret ballot held under subsection (2) or subsection (3) must be held in accordance with sections 45 and 46, and those sections apply with all necessary modifications.

    (5) At the conclusion of a secret ballot, the union must inform the following employers of the result of the secret ballot:

    • (a) the employer of the employees in respect of whom the secret ballot has been held; and

    • (b) if subsection (1)(b) applies, the other employers concerned.

    (6) At the conclusion of the secret ballots, bargaining for a single collective agreement may continue,—

    • (a) where subsection (1)(a) applies, if the members of each of the 2 unions or of a majority of the unions, if more than 2,—

      • (i) have voted in favour of bargaining for a single collective agreement with the employer; or

      • (ii) are considered by their union to be in favour of bargaining for a single collective agreement with the employer; or

      • (iii) both; or

    • (b) where subsection (1)(b) applies, if the members of the union or of each union, if there are 2, or of a majority of the unions, if more than 2,—

      • (i) have voted in favour of bargaining for a single collective agreement with the 2 or more employers; or

      • (ii) are considered by the union or each union, as the case may be, to be in favour of bargaining for a single collective agreement with the 2 or more employers; or

      • (iii) both.

48 When requirement for secret ballot does not apply
  • Sections 45, 46, and 47 do not apply to bargaining for a single collective agreement if—

    • (a) the collective agreement is intended to replace a single collective agreement that is in force; and

    • (b) the parties to the bargaining are 2 or more of the same parties to the single collective agreement; and

    • (c) the scope of the coverage clause is not wider than the scope of the coverage clause in the single collective agreement.

49 Parties joining bargaining after it begins
  • (1) A union or employer may become a party to bargaining for a collective agreement after bargaining has been initiated, but only if the requirements of this section are met.

    (2) The union or employer that wishes to become a party to the bargaining must, at the time that it seeks to become a party, meet the requirements (including but not limited to those for secret ballots) that would have applied if the union or employer had been a party at the initiation of the bargaining.

    (3) The parties to the bargaining must consent to the union or employer becoming a party to the bargaining.

50 Consolidation of bargaining
  • (1) This section applies if—

    • (a) an employer receives 2 or more notices under section 42 from different unions; and

    • (b) the notices relate, in whole or in part, to the same type of work.

    (2) The employer may, within 40 days after receiving the first notice, request each union concerned to consolidate the bargaining initiated by each notice into bargaining for a single collective agreement.

    (3) Each union receiving a request under subsection (2) must, within 30 days after receiving the request,—

    • (a) agree to the request; or

    (4) A union that does not comply with subsection (3) is to be treated as if it had withdrawn the notice given under section 42.

    (5) If all the unions concerned agree to the request, the bargaining initiated by each notice is consolidated into bargaining for a single collective agreement.

Facilitating bargaining

  • Heading: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50A Purpose of facilitating collective bargaining
  • (1) The purpose of sections 50B to 50I is to provide a process that enables 1 or more parties to collective bargaining who are having serious difficulties in concluding a collective agreement to seek the assistance of the Authority in resolving the difficulties.

    (2) Sections 50B to 50I do not—

    • (a) prevent the parties from seeking assistance from another person in resolving the difficulties; or

    • (b) apply to any agreement or arrangement with the other person providing such assistance.

    Section 50A: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50B Reference to Authority
  • (1) One or more matters relating to bargaining for a collective agreement may be referred to the Authority for facilitation to assist in resolving difficulties in concluding the collective agreement.

    (2) A reference for facilitation—

    • (a) may be made by any party to the bargaining or 2 or more parties jointly; and

    • (b) must be made on 1 or more of the grounds specified in section 50C(1).

    Section 50B: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50C Grounds on which Authority may accept reference
  • (1) The Authority must not accept a reference for facilitation unless satisfied that 1 or more of the following grounds exist:

    • (a) that—

      • (i) in the course of the bargaining, a party has failed to comply with the duty of good faith in section 4; and

      • (ii) the failure—

        • (A) was serious and sustained; and

        • (B) has undermined the bargaining:

    • (b) that—

      • (i) the bargaining has been unduly protracted; and

      • (ii) extensive efforts (including mediation) have failed to resolve the difficulties that have precluded the parties from entering into a collective agreement:

    • (c) that—

      • (i) in the course of the bargaining there has been 1 or more strikes or lockouts; and

      • (ii) the strikes or lockouts have been protracted or acrimonious:

    • (d) that—

      • (i) in the course of bargaining, a party has proposed a strike or lockout; and

      • (ii) the strike or lockout, if it were to occur, would be likely to affect the public interest substantially.

    (2) For the purposes of subsection (1)(d)(ii), a strike or lockout is likely to affect the public interest substantially if—

    • (a) the strike or lockout is likely to endanger the life, safety, or health of persons; or

    • (b) the strike or lockout is likely to disrupt social, environmental, or economic interests and the effects of the disruption are likely to be widespread, long-term, or irreversible.

    (3) The Authority must not accept a reference in relation to bargaining for which the Authority has already acted as a facilitator unless—

    • (a) circumstances relating to the bargaining have changed; or

    • (b) the bargaining since the previous facilitation has been protracted.

    Section 50C: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50D Limitation on which member of Authority may provide facilitation
  • A member of the Authority who facilitates collective bargaining must not be the member of the Authority who accepted the reference for facilitation.

    Section 50D: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50E Process of facilitation
  • (1) The process to be followed during facilitation—

    • (a) must be conducted in private; and

    • (b) is the process determined by the Authority.

    (2) During facilitation, the collective bargaining that the facilitation relates to continues subject to the process determined by the Authority.

    (3) During facilitation, the Authority—

    • (a) is not acting as an investigative body; and

    • (b) may not exercise the powers it has for investigating matters.

    (4) The provision of facilitation by the Authority may not be challenged or called in question in any proceedings on the ground—

    • (a) that the nature and content of the facilitation was inappropriate; or

    • (b) that the manner in which the facilitation was provided was inappropriate.

    Section 50E: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50F Statements made by parties during facilitation
  • (1) A statement made by a party for the purposes of facilitation is not admissible against the party in proceedings under this Act.

    (2) A party may make a public statement about facilitation only if—

    • (a) it is made in good faith; and

    • (b) it is limited to the process of facilitation or the progress being made.

    Section 50F: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50G Proposals made or positions reached during facilitation
  • (1) A proposal made by a party or a position reached by parties to collective bargaining during facilitation is not binding on a party after facilitation has come to an end.

    (2) This section—

    • (a) applies to avoid doubt; and

    • (b) is subject to any agreement of the parties.

    Section 50G: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50H Recommendation by Authority
  • (1) While assisting parties to bargaining for a collective agreement, the Authority may make 1 or more recommendations about—

    • (a) the process the parties should follow to reach agreement; or

    • (b) the provisions of the collective agreement the parties should conclude; or

    • (c) both.

    (2) The Authority may give public notice of a recommendation in such manner as the Authority determines.

    (3) A recommendation made by the Authority is not binding on a party, but a party must consider a recommendation before deciding whether to accept the recommendation.

    Section 50H: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50I Party must deal with Authority in good faith
  • During facilitation, a party to bargaining for a collective agreement must deal with the Authority in good faith.

    Section 50I: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

Determining collective agreement if breach of duty of good faith

  • Heading: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

50J Remedy for serious and sustained breach of duty of good faith in section 4 in relation to collective bargaining
  • (1) A party to bargaining for a collective agreement may apply, on the grounds specified in subsection (3), to the Authority for a determination fixing the provisions of the collective agreement being bargained for.

    (2) The Authority may fix the provisions of the collective agreement being bargained for if it is satisfied that—

    • (a) the grounds in subsection (3) have been made out; and

    • (b) it is appropriate, in all the circumstances, to do so.

    (3) The grounds are that—

    • (a) a breach of the duty of good faith in section 4

      • (i) has occurred in relation to the bargaining; and

      • (ii) was sufficiently serious and sustained as to significantly undermine the bargaining; and

    • (b) all other reasonable alternatives for reaching agreement have been exhausted; and

    • (c) fixing the provisions of the collective agreement is the only effective remedy for the party or parties affected by the breach of the duty of good faith.

    (4) The Authority may make a determination under this section whether or not any penalty for a breach of good faith has been awarded under section 4A in relation to the same bargaining and whether or not the breach is the same breach.

    (5) The effect of a determination of the Authority fixing the provisions of a collective agreement is to make the collective agreement binding and enforceable as if it had been—

    (6) Section 59 applies to the determination as if it were a collective agreement.

    (7) If the bargaining for the collective agreement was subject to facilitation under sections 50A to 50I, the member of the Authority who makes a determination under this section must not be the member of the Authority who conducted the facilitation if a party to the bargaining objects.

    Section 50J: inserted, on 1 December 2004, by section 14 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

Collective agreements

51 Ratification of collective agreement
  • (1) A union must not sign a collective agreement or a variation of it unless the agreement or variation has been ratified in accordance with the ratification procedure notified under subsection (2).

    (2) At the beginning of bargaining for a collective agreement or a variation of it, a union must notify the other intended party or parties to the collective agreement of the procedure for ratification by the employees to be bound by it that must be complied with before the union may sign the collective agreement or variation of it.

52 When collective agreement comes into force and expires
  • (1) A collective agreement comes into force on—

    • (a) the date specified in the agreement as the date on which it comes into force; or

    • (b) if no such date is specified, the date on which the last party to the agreement, or its duly authorised representative, signed the agreement.

    (2) A collective agreement may provide that 1 or more of its provisions have effect from 1 or more dates before or after the date on which the agreement comes into force.

    (3) A collective agreement expires on the close of the earliest of the following dates:

    • (a) the date specified in the agreement as the date on which the agreement expires:

    • (b) the date on which an event occurs, being an event that is specified by the agreement as an event on the occurrence of which the agreement expires:

    • (c) the date that is the third anniversary of the agreement coming into force.

    (4) Subsection (3) applies subject to section 53.

53 Continuation of collective agreement after specified expiry date
  • (1) A collective agreement that would otherwise expire as provided in section 52(3) continues in force—

    • (a) if subsection (2) is complied with; and

    • (b) for the period specified in subsection (3).

    (2) This subsection is complied with if the union initiated collective bargaining before the collective agreement expired and for the purpose of replacing the collective agreement.

    (3) The period is the period (not exceeding 12 months) during which bargaining continues for a collective agreement to replace the collective agreement that has expired.

54 Form and content of collective agreement
  • (1) A collective agreement has no effect unless—

    • (a) it is in writing; and

    • (b) it is signed by each union and employer that is a party to the agreement.

    (2) A collective agreement may contain such provisions as the parties to the agreement mutually agree on.

    (3) However, a collective agreement—

    • (a) must contain—

      • (i) a coverage clause; and

      • (ii) [Repealed]

      • (iii) a plain language explanation of the services available for the resolution of employment relationship problems, including a reference to the period of 90 days in section 114 within which a personal grievance must be raised; and

      • (iv) a clause providing how the agreement can be varied; and

      • (v) the date on which the agreement expires or an event on the occurrence of which the agreement is to expire; and

    • (b) must not contain anything—

      • (i) contrary to law; or

      • (ii) inconsistent with this Act.

    Section 54(3)(a)(ii): repealed, on 1 December 2004, by section 15 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

55 Deduction of union fees
  • (1) A collective agreement is to be treated as if it contains a provision that requires an employer that is a party to the agreement to deduct, with the consent of a union member, the member's union fee from the member's salary or wages on a regular basis during the year.

    (2) A collective agreement may exclude or vary the effect of subsection (1).

    (3) Union fees deducted from a member's salary or wages must be paid to the union concerned in accordance with any arrangement agreed with the union.

56 Application of collective agreement
  • (1) A collective agreement that is in force binds and is enforceable by—

    • (a) the union and the employer that are the parties to the agreement; and

    • (b) employees—

      • (i) who are employed by an employer that is a party to the agreement; and

      • (ii) who are or become members of a union that is a party to the agreement; and

      • (iii) whose work comes within the coverage clause in the agreement.

    (1A) However, an employee who is bound by a collective agreement and who holds a minimum wage exemption permit under section 8 of the Minimum Wage Act 1983 may be paid wages at the rate specified in the permit,—

    • (a) while the permit is in force; and

    • (b) if the union that is a party to the collective agreement agrees.

    (2) If the registration of a union that is a party to a collective agreement is cancelled or the union ceases to be an incorporated society, the collective agreement continues to bind the employer or employers who are parties to the agreement, and the members of the union who were bound by the collective agreement immediately before the cancellation of the union's registration or the cessation of the union as an incorporated society.

    (3) If the union's registration is cancelled as a result of the union's amalgamation with 1 or more other unions, the collective agreement binds the amalgamated union.

    Section 56(1A): inserted, on 1 December 2004, by section 16 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 56(1A): amended, on 28 March 2007, by section 5(1) of the Minimum Wage Amendment Act 2007 (2007 No 12).

56A Application of collective agreement to subsequent parties
  • (1) An employer who is not a party to a collective agreement may become a party to the collective agreement if—

    • (a) the agreement provides for an employer to become a party to the agreement after it has been signed by the original parties to the agreement; and

    • (b) the work of some or all of the employer's employees comes within the coverage clause in the agreement; and

    • (c) the employees referred to in paragraph (b) are not bound by another collective agreement in respect of their work for the employer; and

    • (d) the employer notifies all the parties to the agreement in accordance with subsection (5) that the employer proposes to become a party to the agreement.

    (2) On the day after the day on which all parties to the collective agreement have been notified in accordance with subsection (5),—

    • (a) the employer becomes a party to the collective agreement; and

    • (b) the collective agreement also binds and is enforceable by—

      • (i) the employer:

      • (ii) employees—

        • (A) who are employed by the employer; and

        • (B) who are or become members of a union that is a party to the agreement; and

        • (C) whose work comes within the coverage clause in the agreement.

    (3) A union that is not a party to a collective agreement may become a party to the collective agreement if—

    • (a) the agreement provides for a union to become a party to the agreement after it has been signed by the original parties to the agreement; and

    • (b) the union has members doing work that comes within the coverage clause of the collective agreement; and

    • (c) as a result of a secret ballot of those members, a majority of them who are entitled to vote and do vote are in favour of the union becoming a party to the collective agreement; and

    • (d) the union notifies all the parties to the collective agreement in accordance with subsection (5) that the union proposes to become a party to the agreement.

    (4) On the day after the day on which all parties to the collective agreement have been notified in accordance with subsection (5),—

    • (a) the union becomes a party to the collective agreement; and

    • (b) the collective agreement also binds and is enforceable by—

      • (i) the union:

      • (ii) employees—

        • (A) who are employed by an employer that is a party to the agreement; and

        • (B) who are or become members of the union; and

        • (C) whose work comes within the coverage clause in the agreement.

    (5) For the purposes of this section, a party to a collective agreement is notified—

    • (a) when the notice is given to the party; or

    • (b) if the notice is posted to the party, on the seventh day after the day on which the notice is posted.

    (6) For the purposes of subsection (1)(b) and (c), employees includes persons whom the employer might employ in the future.

    Section 56A: inserted, on 1 December 2004, by section 17 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

57 Employee bound by only 1 collective agreement in respect of same work
  • If an employee is a member of more than 1 union, the employee is bound by only 1 collective agreement covering the same work done by the employee, being the collective agreement resulting from the bargaining first initiated which covered the employee's work.

58 Employee who resigns as member of union but does not resign as employee
  • (1) A member of a union who is bound by a collective agreement and who resigns as a member of the union but does not resign from his or her employment, may not be subject to any other bargaining for a collective agreement or bound by any other collective agreement until the 60th day before the expiry date of the collective agreement binding on the member before resigning as a member of the union.

    (2) For the purposes of subsection (1), the expiry date of a collective agreement is determined under section 52(3) without taking section 53 into account.

59 Copy of collective agreement to be delivered to chief executive
  • (1) The parties to a collective agreement must ensure that, as soon as practicable after they enter into the agreement, a copy of the agreement is delivered to the chief executive.

    (2) The copy of the agreement delivered to the chief executive must include any document referred to, or incorporated by reference, in the collective agreement, unless the document is publicly available.

    (3) Nothing in the Official Information Act 1982 applies to copies of collective agreements delivered to the chief executive under subsection (1).

    (4) The information contained in the copies of collective agreements delivered to the chief executive under subsection (1) must be used only for statistical or analytical purposes.

Undermining collective bargaining or collective agreement

  • Heading: inserted, on 1 December 2004, by section 18 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

59A Interpretation
  • In sections 59B and 59C, reached, in relation to a term or condition in bargaining for a collective agreement, means a term or condition that the parties have agreed or accepted should be a term or condition of the collective agreement if the agreement is concluded and ratified.

    Section 59A: inserted, on 1 December 2004, by section 18 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

59B Breach of duty of good faith to pass on, in certain circumstances, in individual employment agreement terms and conditions agreed in collective bargaining or in collective agreement
  • (1) It is not a breach of the duty of good faith in section 4 for an employer to agree that a term or condition of employment of an employee who is not bound by a collective agreement should be the same or substantially the same as a term or condition in a collective agreement that binds the employer.

    (2) However, it is a breach of the duty of good faith in section 4 for an employer to do so if—

    • (a) the employer does so with the intention of undermining the collective agreement; and

    • (b) the effect of the employer doing so is to undermine the collective agreement.

    (3) It is not a breach of the duty of good faith in section 4 for an employer to agree that a term or condition of employment of an employee should be the same or substantially the same as a term or condition reached in bargaining for a collective agreement.

    (4) However, it is a breach of the duty of good faith in section 4 for an employer to do so if—

    • (a) the employer does so with the intention of undermining the collective bargaining; or

    • (b) the effect of the employer doing so is to undermine the collective bargaining.

    (5) It is not a breach of the duty of good faith in section 4 if anything referred to in subsection (2) or subsection (4) is done with the agreement of the union concerned.

    (6) In determining whether subsection (2)(a) and (b) or subsection (4)(a) or (b) applies, the following matters must be taken into account:

    • (a) whether the employer bargained with the employee before they agreed on the term or condition of employment:

    • (b) whether the employer consulted the union in good faith before agreeing to the term or condition of employment:

    • (c) the number of the employer's employees bound by the collective agreement or covered by the collective bargaining compared to the number of the employer's employees not bound by the collective agreement or not covered by the collective bargaining:

    • (d) how long the collective agreement has been in force:

    (7) Subsection (6) does not limit the matters that may be taken into account for the purposes of subsection (2)(a) and (b) or subsection (4)(a) or (b).

    (8) Every employer who commits a breach of the duty of good faith under this section is liable to a penalty under this Act.

    Section 59B: inserted, on 1 December 2004, by section 18 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

59C Breach of duty of good faith to pass on, in certain circumstances, in collective agreement provisions agreed in other collective bargaining or another collective agreement
  • (1) It is not a breach of the duty of good faith in section 4 for an employer to conclude a collective agreement that contains 1 or more provisions that are the same or substantially the same as provisions in another collective agreement to which the employer is a party.

    (2) However, it is a breach of the duty of good faith in section 4 for an employer to do so if—

    • (a) the intention of the employer is to undermine the other collective agreement; and

    • (b) the effect of the employer doing so is to undermine the other collective agreement.

    (3) It is not a breach of the duty of good faith in section 4 for an employer to conclude a collective agreement that contains 1 or more provisions that are the same or substantially the same as provisions reached in bargaining for another collective agreement.

    (4) However, it is a breach of the duty of good faith in section 4 for an employer to do so if—

    • (a) the employer does so with the intention of undermining the other collective bargaining; or

    • (b) the effect of the employer doing so is to undermine the other collective bargaining.

    (5) It is not a breach of the duty of good faith in section 4 if anything referred to in subsection (2) or subsection (4) is done with the agreement of the parties to the other collective agreement or collective bargaining.

    (6) In determining whether subsection (2)(a) and (b) or subsection (4)(a) or (b) applies, the following matters must be taken into account:

    • (a) whether the employer and union bargained before agreeing on the provision:

    • (b) whether the employer and union consulted, in good faith, the parties to the other collective agreement or collective bargaining:

    • (c) the number of the employer's employees bound by the collective agreement or covered by the collective bargaining compared to the number of the employer's employees bound by the other collective agreement or covered by the other collective bargaining:

    • (d) how long the other collective agreement has been in force.

    (7) Subsection (4) does not limit the matters that may be taken into account for the purposes of subsection (2)(a) and (b) or subsection (4)(a) or (b).

    (8) Every employer who commits a breach of the duty of good faith under this section is liable to a penalty under this Act.

    Section 59C: inserted, on 1 December 2004, by section 18 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

Part 6
Individual employees' terms and conditions of employment

60 Object of this Part
  • The object of this Part is—

    • (a) to specify the rules for determining the terms and conditions of an employee's employment; and

    • (b) to require new employees, whose terms and conditions of employment are not determined with reference to a collective agreement, to be given sufficient information and an adequate opportunity to seek advice before entering into an individual employment agreement; and

    • (c) to recognise that, in relation to individual employees and their employers, good faith behaviour is—

      • (i) promoted by providing protection against unfair bargaining; and

      • (ia) required when entering into and varying individual employment agreements; and

      • (ii) consistent with, but not limited to, the implied term of mutual trust and confidence in the relationship between employee and employer.

    Section 60(c)(ia): inserted, on 1 December 2004, by section 19(1) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 60(c)(ii): amended, on 1 December 2004, by section 19(2) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

60A Good faith in bargaining for individual employment agreement
  • (1) The matters that are relevant to whether an employee and employer bargaining for an individual employment agreement are dealing with each other in good faith include the circumstances of the employee and employer.

    (2) For the purposes of subsection (1), circumstances, in relation to an employee and an employer, include—

    • (a) the operational environment of the employee and employer; and

    • (b) the resources available to the employee and employer.

    Section 60A: inserted, on 1 December 2004, by section 20 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

61 Employee bound by applicable collective agreement may agree to additional terms and conditions of employment
  • (1) The terms and conditions of employment of an employee who is bound by an applicable collective agreement may include any additional terms and conditions that are—

    • (a) mutually agreed to by the employee and the employer, whether before, on, or after the date on which the employee became bound by the collective agreement; and

    • (b) not inconsistent with the terms and conditions in the collective agreement.

    (2) If the applicable collective agreement expires or the employee resigns from the union that is bound by the agreement,—

    • (a) the employee is employed under an individual employment agreement based on the collective agreement and any additional terms and conditions agreed under subsection (1); and

    • (b) the employee and employer may, by mutual agreement, vary that individual employment agreement as they think fit.

62 Employer's obligations in respect of new employee who is not member of union
  • (1) This section—

    • (a) applies to a new employee who—

      • (i) is not a member of a union that is a party to a collective agreement that covers the work to be done by the employee; and

      • (ii) enters into an individual employment agreement with an employer that is a party to a collective agreement that covers the work to be done by the employee; but

    • (b) does not apply to an employee who—

      • (i) resigns as a member of a union and enters into an individual employment agreement with the same employer; or

      • (ii) enters into a new individual employment agreement with the same employer.

    (1A) For the purposes of subsection (1), a collective agreement that includes a coverage clause referring to named employees, or the work done by named employees, to whom the collective agreement applies, must be treated as covering the work or type of work done by the named employees (whether done by those employees or any other employees).

    (2) At the time when the employee enters into the individual employment agreement with an employer, the employer must—

    • (a) inform the employee—

      • (i) that the collective agreement exists and covers work to be done by the employee; and

      • (ii) that the employee may join the union that is a party to the collective agreement; and

      • (iii) about how to contact the union; and

      • (iv) that, if the employee joins the union, the employee will be bound by the collective agreement; and

      • (v) that, during the first 30 days of the employee's employment, the employee's terms and conditions of employment comprise—

        • (A) the terms and conditions in the collective agreement that would bind the employee if the employee were a member of the union; and

        • (B) any additional terms and conditions mutually agreed to by the employee and employer that are not inconsistent with the terms and conditions in the collective agreement; and

    • (b) give the employee a copy of the collective agreement; and

    • (c) if the employee agrees, inform the union as soon as practicable that the employee has entered into the individual employment agreement with the employer.

    (3) If the work to be done by the employee is covered by more than 1 collective agreement, the employer must—

    • (a) comply with subsection (2) in relation to the collective agreement that binds more of the employer's employees in relation to the work the new employee will be performing than any of the other collective agreements; and

    • (b) inform the employee of the existence of the other agreement or agreements.

    (4) Every employer who fails to comply with this section is liable to a penalty imposed by the Authority.

    Section 62(1)(a): substituted, on 1 December 2004, by section 21(1) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 62(1A): inserted, on 1 December 2004, by section 21(2) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 62(3)(a): amended, on 1 December 2004, by section 21(3) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

63 Terms and conditions of employment of new employee who is not member of union
  • (1) The terms and conditions of employment of an employee to whom section 62 applies are determined in accordance with subsections (2) to (5).

    (2) For the first 30 days after the employee enters into an individual employment agreement, the employee's terms and conditions of employment comprise—

    • (a) the terms and conditions in the collective agreement that would bind the employee if the employee were a member of the union; and

    • (b) any additional terms and conditions mutually agreed to by the employee and employer that are not inconsistent with the terms and conditions in the collective agreement.

    (2A) However, the employee's terms and conditions of employment do not include any bargaining fee payable under Part 6B.

    (3) If the work to be done by the employee is covered by more than 1 collective agreement, subsection (2)(a) applies to the collective agreement that binds more of the employer's employees in relation to the work the employee will be performing than any of the other collective agreements.

    (4) No term or condition of employment may be expressed to alter automatically after the 30-day period to be inconsistent with the collective agreement.

    (5) After the 30-day period expires, the employee and the employer may, by mutual agreement, vary the individual employment agreement as they think fit.

    (6) For an employee who holds a minimum wage exemption permit under section 8 of the Minimum Wage Act 1983, the terms and conditions under subsection (2) are subject to the terms of the permit relating to the wages to be paid.

    Section 63(2A): inserted, on 1 December 2004, by section 22(1) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 63(3): amended, on 1 December 2004, by section 22(2) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 63(6): added, on 1 December 2004, by section 22(3) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 63(6): amended, on 28 March 2007, by section 5(1) of the Minimum Wage Amendment Act 2007 (2007 No 12).

63A Bargaining for individual employment agreement or individual terms and conditions in employment agreement
  • (1) This section applies when bargaining for terms and conditions of employment in the following situations:

    • (a) under section 61(1), in relation to additional terms and conditions to the applicable collective agreement:

    • (b) under section 61(2), in relation to—

      • (i) additional terms and conditions to the collective agreement on which the individual employment agreement is based; and

      • (ii) variations to the individual employment agreement in subparagraph (i):

    • (c) under section 63(2), in relation to additional terms and conditions for the first 30 days of an individual employment agreement:

    • (d) under section 63(5), in relation to variations to terms and conditions of an individual employment agreement after the 30-day period:

    • (e) in relation to terms and conditions of an individual employment agreement for an employee if no collective agreement covers the work done, or to be done, by the employee:

    • (f) where a fixed term of employment, or probationary or trial period of employment, is proposed:

    • (g) under section 69M or section 69N in relation to employee protection provisions in individual employment agreements:

    • (h) under section 69I in relation to redundancy entitlements with a new employer.

    (2) The employer must do at least the following things:

    • (a) provide to the employee a copy of the intended agreement, or the part of the intended agreement, under discussion; and

    • (b) advise the employee that he or she is entitled to seek independent advice about the intended agreement or any part of the intended agreement; and

    • (c) give the employee a reasonable opportunity to seek that advice; and

    • (d) consider any issues that the employee raises and respond to them.

    (3) Every employer who fails to comply with this section is liable to a penalty imposed by the Authority.

    (4) Failure to comply with this section does not affect the validity of the employment agreement between the employee and the employer.

    (5) The requirements imposed by this section are in addition to any requirements that may be imposed under any provision in this Act.

    (6) For the purpose of subsection (1)(e), a collective agreement that includes a coverage clause referring to named employees, or the work done by named employees, to whom the collective agreement applies, must be treated as covering the work or type of work done by the named employees (whether done by those employees or any other employees).

    (7) In this section, employee includes a prospective employee.

    Section 63A: inserted, on 1 December 2004, by section 23 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

64 Opportunity to seek advice for new employee where no collective agreement applies
  • [Repealed]

    Section 64: repealed, on 1 December 2004, by section 24 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

65 Terms and conditions of employment where no collective agreement applies
  • (1) The individual employment agreement of an employee whose work is not covered by a collective agreement that binds his or her employer—

    • (a) must be in writing; and

    • (b) may contain such terms and conditions as the employee and employer think fit.

    (2) However, the individual employment agreement—

    • (a) must include—

      • (i) the names of the employee and employer concerned; and

      • (ii) a description of the work to be performed by the employee; and

      • (iii) an indication of where the employee is to perform the work; and

      • (iv) an indication of the arrangements relating to the times the employee is to work; and

      • (v) the wages or salary payable to the employee; and

      • (vi) a plain language explanation of the services available for the resolution of employment relationship problems, including a reference to the period of 90 days in section 114 within which a personal grievance must be raised; and

    • (b) must not contain anything—

      • (i) contrary to law; or

      • (ii) inconsistent with this Act.

    (3) To determine for the purposes of subsection (1) whether the work of an employee is covered by a collective agreement that binds the employer, a collective agreement that includes a coverage clause referring to named employees, or the work or type of work done by named employees, to whom the collective agreement applies, must be treated as covering the work or type of work done by the named employees (whether done by those employees or any other employees).

    Section 65(3): added, on 1 December 2004, by section 25 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

65A Deduction of union fees
  • (1) An individual employment agreement of an employee who is a member of a union is to be treated as if it contains a provision that requires the employee's employer to deduct, with the consent of the employee, the employee's union fee from the employee's salary or wages on a regular basis during the year.

    (2) An individual employment agreement may exclude or vary the effect of subsection (1).

    (3) Union fees deducted from an employee's salary or wages under subsection (1) must be paid to the union concerned in accordance with any arrangement agreed with the union.

    Section 65A: inserted, on 1 December 2004, by section 26 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

66 Fixed term employment
  • (1) An employee and an employer may agree that the employment of the employee will end—

    • (a) at the close of a specified date or period; or

    • (b) on the occurrence of a specified event; or

    • (c) at the conclusion of a specified project.

    (2) Before an employee and employer agree that the employment of the employee will end in a way specified in subsection (1), the employer must—

    • (a) have genuine reasons based on reasonable grounds for specifying that the employment of the employee is to end in that way; and

    • (b) advise the employee of when or how his or her employment will end and the reasons for his or her employment ending in that way.

    (3) The following reasons are not genuine reasons for the purposes of subsection (2)(a):

    • (a) to exclude or limit the rights of the employee under this Act:

    • (b) to establish the suitability of the employee for permanent employment:

    (4) If an employee and an employer agree that the employment of the employee will end in a way specified in subsection (1), the employee's employment agreement must state in writing—

    • (a) the way in which the employment will end; and

    • (b) the reasons for ending the employment in that way.

    (5) Failure to comply with subsection (4), including failure to comply because the reasons for ending the employment are not genuine reasons based on reasonable grounds, does not affect the validity of the employment agreement between the employee and the employer.

    (6) However, if the employer does not comply with subsection (4), the employer may not rely on any term agreed under subsection (1)—

    • (a) to end the employee's employment if the employee elects, at any time, to treat that term as ineffective; or

    • (b) as having been effective to end the employee's employment, if the former employee elects to treat that term as ineffective.

    Section 66(3)(c): added, on 1 April 2004, by section 91(2) of the Holidays Act 2003 (2003 No 129).

    Section 66(4): added, on 1 December 2004, by section 27 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 66(5): added, on 1 December 2004, by section 27 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 66(6): added, on 1 December 2004, by section 27 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

67 Probationary arrangements
  • (1) Where the parties to an employment agreement agree as part of the agreement that an employee will serve a period of probation after the commencement of the employment,—

    • (a) the fact of the probation period must be specified in writing in the employment agreement; and

    • (b) neither the fact that the probation period is specified, nor what is specified in respect of it, affects the application of the law relating to unjustifiable dismissal to a situation where the employee is dismissed in reliance on that agreement during or at the end of the probation period.

    (2) Failure to comply with subsection (1)(a) does not affect the validity of the employment agreement between the parties.

    (3) However, if the employer does not comply with subsection (1)(a), the employer may not rely on any term agreed under subsection (1) that the employee serve a period of probation if the employee elects, at any time, to treat that term as ineffective.

    Section 67(1): amended, on 1 March 2009, by section 6 of the Employment Relations Amendment Act 2008 (2008 No 106).

    Section 67(1)(a): amended, on 1 March 2009, by section 6 of the Employment Relations Amendment Act 2008 (2008 No 106).

    Section 67(1)(b): amended, on 1 March 2009, by section 6 of the Employment Relations Amendment Act 2008 (2008 No 106).

    Section 67(2): added, on 1 December 2004, by section 28 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 67(3): added, on 1 December 2004, by section 28 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 67(3): amended, on 1 March 2009, by section 6 of the Employment Relations Amendment Act 2008 (2008 No 106).

67A When employment agreement may contain provision for trial period for 90 days or less
  • (1) An employment agreement containing a trial provision, as defined in subsection (2), may be entered into by an employee, as defined in subsection (3), and an employer as defined in subsection (4).

    (2) Trial provision means a written provision in an employment agreement that states, or is to the effect, that—

    • (a) for a specified period (not exceeding 90 days), starting at the beginning of the employee's employment, the employee is to serve a trial period; and

    • (b) during that period the employer may dismiss the employee; and

    • (c) if the employer does so, the employee is not entitled to bring a personal grievance or other legal proceedings in respect of the dismissal.

    (3) Employee means an employee who has not been previously employed by the employer.

    (4) Employer means an employer who, at the beginning of the day on which the employment agreement is entered into, employs fewer than 20 employees.

    (5) To avoid doubt, a trial provision may be included in an employment agreement under—

    Section 67A: inserted, on 1 March 2009, by section 7 of the Employment Relations Amendment Act 2008 (2008 No 106).

67B Effect of trial provision under section 67A
  • (1) This section applies if an employer terminates an employment agreement containing a trial provision under section 67A by giving the employee notice of the termination before the end of the trial period, whether the termination takes effect before, at, or after the end of the trial period.

    (2) An employee whose employment agreement is terminated in accordance with subsection (1) may not bring a personal grievance or legal proceedings in respect of the dismissal.

    (3) Neither this section nor a trial provision prevents an employee from bringing a personal grievance or legal proceedings on any of the grounds specified in section 103(1)(b) to (g).

    (4) An employee whose employment agreement contains a trial provision is, in all other respects (including access to mediation services), to be treated no differently from an employee whose employment agreement contains no trial provision or contains a trial provision that has ceased to have effect.

    (5) Subsection (4) applies subject to the following provisions:

    • (a) in observing the obligation in section 4 of dealing in good faith with the employee, the employer is not required to comply with section 4(1A)(c) in making a decision whether to terminate an employment agreement under this section; and

    • (b) the employer is not required to comply with a request under section 120 that relates to terminating an employment agreement under this section.

    Section 67B: inserted, on 1 March 2009, by section 7 of the Employment Relations Amendment Act 2008 (2008 No 106).

68 Unfair bargaining for individual employment agreements
  • (1) Bargaining for an individual employment agreement is unfair if—

    • (a) 1 or more of paragraphs (a) to (d) of subsection (2) apply to a party to the agreement (person A); and

    • (b) the other party to the agreement (person B) or another person who is acting on person B's behalf—

      • (i) knows of the circumstances described in the paragraph or paragraphs that apply to person A; or

      • (ii) ought to know of the circumstances in the paragraph or paragraphs that apply to person A because person B or the other person is aware of facts or other circumstances from which it can be reasonably inferred that the paragraph or paragraphs apply to person A.

    (2) The circumstances are that person A, at the time of bargaining for or entering into the agreement,—

    • (a) is unable to understand adequately the provisions or implications of the agreement by reason of diminished capacity due (for example) to—

      • (i) age; or

      • (ii) sickness; or

      • (iii) mental or educational disability; or

      • (iv) a disability relating to communication; or

      • (v) emotional distress; or

    • (b) reasonably relies on the skill, care, or advice of person B or a person acting on person B's behalf; or

    • (c) is induced to enter into the agreement by oppressive means, undue influence, or duress; or

    • (d) where section 63A applied, did not have the information or the opportunity to seek advice as required by that section.

    (3) In this section, individual employment agreement includes a term or condition of an individual employment agreement.

    (4) Except as provided in this section, a party to an individual employment agreement must not challenge or question the agreement on the ground that it is unfair or unconscionable.

    Section 68(2)(d): amended, on 1 December 2004, by section 29 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

69 Remedies for unfair bargaining
  • (1) If a party to an individual employment agreement is found to have bargained unfairly under section 68, the Authority may do 1 or more of the following things:

    • (a) make an order that the party pay to the other party such sum, by way of compensation, as the Authority thinks fit:

    • (b) make an order cancelling or varying the agreement:

    • (c) make such other order as it thinks fit in the circumstances.

    (2) The Authority must not make an order under subsection (1)(b) unless the requirements in section 164 have been met, and that section applies accordingly with all necessary modifications.

Part 6AA
Flexible working

  • Part 6AA: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AA Object of this Part
  • The object of this Part is to—

    • (a) provide certain employees with a statutory right to request a variation of their working arrangements if they have the care of any person; and

    • (b) require an employer to deal with a request as soon as possible but not later than 3 months after receiving it; and

    • (c) provide that an employer may refuse a request only if it cannot be accommodated on certain grounds; and

    • (d) if an employer does not deal with a request in accordance with the process specified in this Part, provide for reference of the matter to a Labour Inspector, then to mediation, and then to the Authority.

    Section 69AA: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAA Interpretation
  • In this Part, unless the context otherwise requires,—

    mediation means mediation provided under section 144

    non-compliance with section 69AAE, except in section 69AAJ, includes an employer's wrong determination about an employee's eligibility to make a request under section 69AAB

    request means a written request made—

    • (a) under this Part; and

    • (b) by an employee to his or her employer to vary the employee's terms and conditions of employment relating to the employee's working arrangements

    working arrangements, in relation to an employee, means 1 or more of the following:

    • (a) hours of work:

    • (b) days of work:

    • (c) place of work (for example, at home or at the employee's place of work).

    Section 69AAA: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

Employee's statutory right to make request

  • Heading: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAB When employee may make request
  • (1) An employee may make a request—

    • (a) if the employee satisfies the criteria specified in subsection (2); and

    (2) The criteria are that—

    • (a) the employee has the care of any person; and

    • (b) the employee, as at the date the request is made, has been employed by his or her employer for the immediately preceding 6 months.

    Section 69AAB: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAC Requirements relating to request
  • A request must be in writing and—

    • (a) state—

      • (i) the employee's name; and

      • (ii) the date on which the request is made; and

      • (iii) that the request is made under this Part; and

    • (b) specify the variation of the working arrangements requested and whether the variation is permanent or for a period of time; and

    • (c) specify the date on which the employee proposes that the variation take effect and, if the variation is for a period of time, the date on which the variation is to end; and

    • (d) explain, in the employee's view, how the variation will enable the employee to provide better care for the person concerned; and

    • (e) explain, in the employee's view, what changes, if any, the employer may need to make to the employer's arrangements if the employee's request is approved.

    Section 69AAC: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAD Limitation on frequency of requests
  • (1) Subsection (2) applies if an employee has made a request under this Part and his or her employer has approved or refused the request.

    (2) The employee is not entitled to make another request under this Part to his or her employer earlier than 12 months after the date on which the previous request was made.

    Section 69AAD: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

Duties of employer

  • Heading: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAE Employer must notify decision as soon as possible
  • An employer must deal with a request as soon as possible but not later than 3 months after receiving it and—

    • (a) notify the employee whether his or her request has been approved or refused; and

    • (b) if the request is refused, notify the employee that the request is refused because—

      • (i) the employee is not eligible to make a request under section 69AAB; or

      • (iii) both; and

    • (c) if the request is refused because of a ground specified in section 69AAF(2) or (3),—

      • (i) notify the employee of the ground for refusal; and

      • (ii) provide an explanation of the reasons for that ground.

    Section 69AAE: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAF Grounds for refusal of request by employer
  • (1) An employer may refuse a request only if the employer determines that—

    • (a) the employee is not eligible to make a request under section 69AAB; or

    • (b) the request cannot be accommodated on 1 or more of the grounds specified in subsection (2); or

    • (c) both.

    (2) The grounds are—

    • (a) inability to reorganise work among existing staff:

    • (b) inability to recruit additional staff:

    • (c) detrimental impact on quality:

    • (d) detrimental impact on performance:

    • (e) insufficiency of work during the periods the employee proposes to work:

    • (f) planned structural changes:

    • (g) burden of additional costs:

    • (h) detrimental effect on ability to meet customer demand.

    (3) However, an employer must refuse a request if—

    • (a) the request is from an employee who is bound by a collective agreement; and

    • (b) the request relates to working arrangements to which the collective agreement applies; and

    • (c) the employee's working arrangements would be inconsistent with the collective agreement if the employer were to approve the request.

    Section 69AAF: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

Resolving disputes

  • Heading: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAG Role of Labour Inspector
  • (1) For the purposes of this Part, a Labour Inspector may provide to employees and employers such assistance as he or she considers appropriate in the circumstances.

    (2) This section applies subject to section 69AAH(2).

    Section 69AAG: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAH Labour Inspectors and mediation
  • (1) This section applies if an employee believes that his or her employer has not complied with section 69AAE.

    (2) The employee may refer the non-compliance with section 69AAE to a Labour Inspector who must, to the extent practicable in the circumstances, assist the employee and employer to resolve the matter.

    (3) If, after completion of the process under subsection (2), the employee is dissatisfied with the result, the employee may refer the matter to mediation.

    (4) For the purposes of subsection (3), non-compliance with section 69AAE is an employment relationship problem.

    Section 69AAH: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAI Application to Authority
  • (1) This section applies if—

    • (a) an employee believes that his or her employer has not complied with section 69AAE; and

    • (b) mediation has not resolved the matter.

    (2) The employee may apply to the Authority for a determination as to whether the employer has complied with section 69AAE.

    (3) An application under subsection (2) must be made within 12 months after the relevant date.

    (4) If the Authority determines that the employer has made a wrong determination about an employee's eligibility to make a request under section 69AAB, the employer must comply with section 69AAE as soon as practicable.

    (5) In subsection (3), relevant date means,—

    • (a) if the employer notifies a refusal within 3 months after receiving a request, the date on which the employer notifies the employee of the employer's refusal:

    • (b) in any other case, the date 3 months after the employer received the employee's request.

    Section 69AAI: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAJ Penalty
  • (1) An employer who does not comply with section 69AAE is liable to a penalty not exceeding $2,000, imposed by the Authority.

    (2) The penalty is payable to the employee concerned.

    Section 69AAJ: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAK Limitation on challenging employer
  • An employee may not challenge his or her employer's refusal of a request, or failure to respond to a request, except—

    • (a) if the employee believes his or her employer has not complied with section 69AAE; and

    Section 69AAK: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

Review of Part

  • Heading: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

69AAL Review of operation of Part after 2 years
  • (1) The Minister must, as soon as is practicable, 2 years after the commencement of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007, require a report to be prepared on the operation and effects of this Part.

    (2) The Minister must ensure that the persons and organisations (including representatives of employees and employers), that the Minister thinks appropriate, are consulted during the preparation of the report about the matters to be considered in the report.

    (3) The report will include recommendations in relation to whether the provisions of this Part should extend to all employees.

    (4) The Minister must present a copy of the report to the House of Representatives.

    Section 69AAL: inserted, on 1 July 2008, by section 5 of the Employment Relations (Flexible Working Arrangements) Amendment Act 2007 (2007 No 105).

Part 6A
Continuity of employment if employees' work affected by restructuring

  • Part 6A: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

Subpart 1Specified categories of employees

  • Subpart 1: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69A Object of this subpart
  • The object of this subpart is to provide protection to specified categories of employees if, as a result of a proposed restructuring, their work is to be performed by another person and, to this end, to give—

    • (a) the employees a right to elect to transfer to the other person as employees on the same terms and conditions of employment; and

    • (b) the employees who have transferred a right,—

      • (i) subject to their employment agreements, to bargain for redundancy entitlements from the other person if made redundant by the other person for reasons relating to the transfer of the employees or to the circumstances arising from the transfer of the employees; and

      • (ii) if redundancy entitlements cannot be agreed with the other person, to have the redundancy entitlements determined by the Authority.

    Section 69A: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69B Interpretation
  • In this subpart, unless the context otherwise requires,—

    agreement means a contract or arrangement

    contracting in has the meaning set out in section 69C

    contracting out has the meaning set out in section 69C

    independent contractor means a person engaged to perform work under an agreement that is not an employment agreement

    new employer has the meaning set out in section 69D

    redundancy entitlements includes redundancy compensation

    restructuring

    • (a) means—

      • (i) contracting out; or

      • (ii) contracting in; or

      • (iii) subsequent contracting; or

      • (iv) selling or transferring an employer's business (or part of it) to another person; but

    • (b) to avoid doubt, does not include,—

      • (i) in the case of an employer that is a company, the sale or transfer of any or all of the shares in the company; or

      • (ii) any contract, arrangement, sale, or transfer entered into, made, or concluded while the employer is adjudged bankrupt or in receivership or liquidation

    subcontractor

    • (a) means a person engaged by an independent contractor to perform work—

      • (i) under an agreement that is not an employment agreement; and

      • (ii) that the independent contractor has agreed to perform for another person; and

    • (b) includes another person engaged by a subcontractor (within the meaning of paragraph (a)) to perform the work or part of the work under an agreement that is not an employment agreement

    subsequent contracting has the meaning set out in section 69C

    work, in relation to work performed by an employee, includes part of the work performed by the employee.

    Section 69B: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69C Meaning of contracting in, contracting out, and subsequent contracting
  • (1) In this subpart, unless the context otherwise requires, contracting in means a situation where—

    • (a) a person (person A) has an agreement with another person (person B) under which person B performs work as an independent contractor for person A; and

    • (b) the work or some of the work is actually performed by employees of person B or of a subcontractor; and

    • (c) the agreement, or that part of the agreement, under which person B performs the work expires or is terminated; and

    • (d) the work is to be performed by person A or employees (if any) of person A.

    (2) In this subpart, unless the context otherwise requires, contracting out means a situation where—

    • (a) a person (person A) enters into an agreement with another person (person B) under which person B is to perform work as an independent contractor for person A; and

    • (b) the employees of person A are actually performing, or employed to undertake, the work or some of the work before the agreement takes effect.

    (3) The definition of contracting out applies whether or not the work is to be performed by—

    • (a) person B or employees (if any) of person B; or

    • (b) a subcontractor or employees (if any) of a subcontractor.

    (4) In this subpart, unless the context otherwise requires,—

    subsequent contracting means a situation where—

    • (a) a person (person A) has an agreement with another person (person B) under which person B performs work as an independent contractor for person A; and

    • (b) the work or some of the work is actually performed by employees of person B or of a subcontractor; and

    • (c) the agreement or that part of the agreement under which person B performs the work expires or is terminated; and

    • (d) person A enters into an agreement with another person (person C) under which person C is to perform the work as an independent contractor for person A.

    (5) The definition of subsequent contracting applies whether or not—

    • (a) the work concerned has previously been the subject of a subsequent contracting:

    • (b) the engagement of person B as an independent contractor constituted a contracting out:

    • (c) the work is to be performed by—

      • (i) person C or employees (if any) of person C; or

      • (ii) a subcontractor or employees (if any) of a subcontractor.

    (6) To avoid doubt, in the definitions of contracting in, contracting out, and subsequent contracting, references to work in relation to person A—

    • (a) mean work that person A is doing or would otherwise do in person A's own right; and

    • (b) include work that person A is doing or would otherwise do as an independent contractor or as a subcontractor.

    Section 69C: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69D Meaning of new employer
  • (1) In section 69I, new employer,—

    • (a) in relation to contracting in, means person A in the definition of that term:

    • (b) in relation to contracting out,—

      • (i) means person B in the definition of that term; but

      • (ii) if, instead of person B or employees (if any) of person B performing the work concerned, person B subcontracts the work (whether before or at the same time as the contracting out), means the subcontractor:

    • (c) in relation to subsequent contracting,—

      • (i) means person C in the definition of that term; but

      • (ii) if, instead of person C or employees (if any) of person C performing the work concerned, person C subcontracts the work (whether before or at the same time as the subsequent contracting), means the subcontractor:

    • (d) in relation to the sale or transfer of an employer's business (or part of it), means the person to whom the business (or part of it) is sold or transferred.

    (2) In the rest of this subpart, new employer means the person to whom an employee—

    • (a) may elect or has elected to transfer under section 69I; or

    • (b) has transferred under that section.

    Section 69D: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69E Examples of contracting in, contracting out, and subsequent contracting
  • (1) This section contains examples of contracting in, contracting out, and subsequent contracting.

    (2) Whether, in the following examples, an employee comes within the protection provided by this subpart depends on whether section 69F applies to the employee.

    (3) This subsection sets out examples of contracting in.

    Example A

    A rest home carries on business in the age-related residential care sector. Instead of providing food catering services through its employees, it enters into an agreement with an independent contractor to provide those services.

    The agreement under which the independent contractor provides those services to the rest home expires or is terminated.

    The rest home then uses its employees or engages further employees to provide those services.

    Employees of the independent contractor to whom section 69F applies may elect to transfer to the rest home.

    Example B

    The circumstances in this example are the same as in example A except that the independent contractor engages a subcontractor to provide food catering services to the rest home.

    As a result of the agreement between the rest home and the independent contractor expiring or being terminated, the agreement between the independent contractor and the subcontractor expires or is terminated.

    Employees of the subcontractor to whom section 69F applies may elect to transfer to the rest home.

    Note

    In both example A and example B, it does not matter whether the rest home's or the independent contractor's employees originally provided the food catering services or whether the work was contracted out or subcontracted at the outset.

    In example A and example B, the persons relate to the definition of contracting in as follows:

    • the rest home is person A:

    • the independent contractor is person B.

    (4) This subsection sets out examples of contracting out.

    Example C

    A school has employees who provide cleaning services.

    The school then enters into an agreement with an independent contractor to do that work or some of that work.

    The employees of the school to whom section 69F applies may elect to transfer to the independent contractor.

    Note

    Example C would not be a contracting out if, at the outset, the school did not have employees providing cleaning services.

    In example C, the persons relate to the definition of contracting out as follows:

    • the school is person A:

    • the independent contractor is person B.

    Example D

    The circumstances in this example are the same as in example C, except that later on the independent contractor decides that, instead of using its employees for the contract for the school, it will engage a subcontractor to do the work or some of the work.

    Employees of the independent contractor to whom section 69F applies may elect to transfer to the subcontractor.

    Note

    In example D, the persons relate to the definition of contracting out as follows:

    • the independent contractor is person A:

    • the subcontractor is person B.

    Note

    In example C and example D if, at the outset, the independent contractor did not have employees providing cleaning services, but subcontracts the work straight away, then the employees to whom section 69F applies may elect to transfer to the subcontractor.

    (5) This subsection sets out examples of subsequent contracting.

    Example E

    An airport operator enters into an agreement with an independent contractor to provide food catering services at the airport.

    Some time later, the agreement under which the independent contractor provides those services expires or is terminated.

    The airport operator then enters into an agreement with a second independent contractor to provide food catering services at the airport.

    Employees of the first independent contractor to whom section 69F applies may elect to transfer to the second independent contractor.

    Note

    In example E, it does not matter whether the agreement between the airport operator and the first independent contractor constitutes a contracting out.

    In example E, the persons relate to the definition of subsequent contracting as follows:

    • the airport operator is person A:

    • the first independent contractor is person B:

    • the second independent contractor is person C.

    Example F

    The circumstances in this example are the same as in example E, except that the first independent contractor engages a subcontractor to do the work or some of the work.

    Later on, the agreement under which the subcontractor provides the work expires or is terminated and the first independent contractor engages a second subcontractor to provide food catering services at the airport.

    The employees of the first subcontractor to whom section 69F applies may elect to transfer to the second subcontractor.

    Note

    In example F, the subsequent contracting occurs at the subcontracting level.

    In example F, the persons relate to the definition of subsequent contracting as follows:

    • the independent contractor is person A:

    • the first subcontractor is person B:

    • the second subcontractor is person C.

    Section 69E: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69F Application of this subpart
  • (1) This subpart applies to an employee if—

    • (b) as a result of a proposed restructuring,—

      • (i) the employee will no longer be required by his or her employer to perform the work performed by the employee; and

      • (ii) the work performed by the employee (or work that is substantially similar) is to be performed by or on behalf of another person.

    (2) To avoid doubt, this subpart applies even though the performance of the work by or on behalf of the other person does not begin immediately after an employee ceases to perform the work for his or her employer.

    Section 69F: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69G Notice of right to make election
  • (1) Before a restructuring takes effect, the employer of the employees who will be affected by the restructuring must provide the employees affected with—

    • (a) a reasonable opportunity to exercise the right to make an election under section 69I(1); and

    • (b) the date by which the right to make an election must be exercised; and

    • (c) information sufficient for the employees to make an informed decision about whether to exercise the right to make an election.

    (2) Without limiting subsection (1)(c), the information provided under that provision must include—

    • (a) the name of the new employer:

    • (b) the nature and scope of the restructuring:

    • (c) the date on which the restructuring is to take effect:

    • (d) how to make an election, the person to whom an election is to be sent, and the form in which the election is to be sent (for example by post, fax, or email).

    (3) If the restructuring is a contracting in or a subsequent contracting, person A in the definition that applies must give the employer sufficient notice of, and information about, the restructuring to enable the employer to comply with subsection (1).

    (4) An employer or other person who fails to comply with this section is liable to a penalty imposed by the Authority.

    Section 69G: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69H Employee bargaining for alternative arrangements
  • (1) To avoid doubt, an employee may, after his or her employer has complied with section 69G and before deciding whether to elect to transfer to the new employer, bargain with his or her employer for alternative arrangements.

    (2) If the employee and employer agree on alternative arrangements,—

    • (a) the alternative arrangements must be recorded in writing; and

    • (b) if paragraph (a) is complied with, the employee may not subsequently elect to transfer to the new employer.

    Section 69H: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69I Employee may elect to transfer to new employer
  • (1) An employee to whom this subpart applies may, before the date provided to the employee under section 69G(1)(b), elect to transfer to the new employer.

    (2) If an employee elects to transfer to the new employer, then to the extent that the employee's work is to be performed by the new employer, the employee—

    • (a) becomes an employee of the new employer on and from the specified date; and

    • (b) is employed on the same terms and conditions by the new employer as applied to the employee immediately before the specified date, including terms and conditions relating to whether the employee is employed full-time or part-time; and

    • (c) is not entitled to any redundancy entitlements under those terms and conditions of employment from his or her previous employer because of the transfer.

    (3) To avoid doubt,—

    • (a) the election of an employee to transfer to a new employer may result in the employee being employed by more than 1 employer if—

      • (i) only part of the employee's work is affected by the restructuring; or

      • (ii) the work performed by the employee will be performed by or on behalf of more than 1 new employer; and

    • (b) a person becomes the new employer of an employee who elects to transfer to the new employer whether or not the new employer—

      • (i) has, or intends to have, employees performing the type of work (or work that is substantially similar) to the work performed by the employee who has elected to transfer to the new employer; or

      • (ii) was an employer before the employee transferred to the new employer:

    • (c) this section does not affect the employment agreement of an employee who elects not to transfer to the new employer.

    Example

    This example relates to subsection (3)(a). A retailer owns 3 gift shops and engages an independent contractor to clean the shops. The independent contractor employs a cleaner to clean the gift shops.

    The cleaning contract between the retailer and the independent contractor expires.

    The retailer enters into a cleaning contract with a second independent contractor for the cleaning of 1 shop, and enters into a new cleaning contract with the first independent contractor for the cleaning of the other 2 shops.

    As a result, the first independent contractor no longer requires the cleaner to clean 1 of the shops.

    The cleaner may elect to transfer and become an employee of the second independent contractor in relation to 1 shop while remaining an employee of the first independent contractor in relation to the other 2 shops.

    (4) In this section, specified date means the date on which the restructuring takes effect.

    Section 69I: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69J Employment of employee who elects to transfer to new employer treated as continuous
  • (1) The employment of an employee who elects to transfer to a new employer is to be treated as continuous, including for the purpose of service-related entitlements whether legislative or otherwise.

    (2) To avoid doubt, and without limiting subsection (1),—

    • (a) in relation to an employee's entitlements under the Holidays Act 2003,—

      • (i) the period of employment of an employee with the employer that ends with the transfer must be treated as a period of employment with the new employer for the purpose of determining the employee's entitlement to annual holidays, sick leave, and bereavement leave; and

      • (ii) the employer must not pay the employee for annual holidays not taken before the date of transfer; and

      • (iii) the new employer must recognise the employee's entitlement to—

        • (A) any sick leave, including any sick leave carried over under section 66 of that Act, not taken before the date of transfer; and

        • (B) any annual holidays not taken before the date of transfer; and

        • (C) any alternative holidays not taken or exchanged for payment under section 61 of that Act before the date of transfer:

    • (b) for the purposes of determining an employee's rights and benefits to parental leave and parental leave payments under the Parental Leave and Employment Protection Act 1987,—

      • (i) the period of employment of an employee with the employer that ends with the transfer must be treated as a period of employment with the new employer; and

      • (ii) the new employer must treat any notice given to or by the employer under the Act as if it had been given to or by the new employer.

    Section 69J: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69K Terms and conditions of employment of transferring employee under fixed term employment
  • (1) This section applies to an employee if—

    • (a) he or she is an employee of—

      • (i) person A in the definition of contracting out; or

      • (ii) person B or of a subcontractor in the definition of contracting in; or

      • (iii) person B or of a subcontractor in the definition of subsequent contracting; or

      • (iv) an employer who is selling or transferring the employer's business (or part of it) to another person; and

    • (b) the employee's terms and conditions of employment include a term agreed under section 66(1) that is—

      • (i) linked to the expiry or termination of the agreement under which his or her employer performs the work; or

      • (ii) included in contemplation of his or her employer entering into an agreement that constitutes a restructuring.

    (2) Despite the employee's terms and conditions of employment containing a term referred to in subsection (1)(b), the employee may elect, under section 69I, to transfer to the new employer.

    (3) If the employee elects, under section 69I, to transfer to the new employer, then the following provisions apply:

    • (a) if the restructuring is a contracting out, the employee's terms and conditions of employment must be read and applied as if the term agreed under section 66(1) were linked to the expiry or termination of the agreement between person A and person B (or a subcontractor):

    • (b) if the restructuring is a contracting in, the employee's terms and conditions of employment cease to include the term referred to in subsection (1)(b):

    • (c) if the restructuring is a subsequent contracting, the employee's terms and conditions of employment must be read and applied as if the term agreed under section 66(1) were linked to the expiry or termination of the contract or arrangement between person A and person C (or a subcontractor):

    • (d) if the restructuring is a sale or transfer of an employer's business, the employee's terms and conditions of employment cease to include the term referred to in subsection (1)(b).

    Section 69K: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69L Agreements excluding entitlements for technical redundancy not affected
  • (1) To avoid doubt, this subpart does not limit or affect any terms and conditions of employment under which the employee's entitlement to redundancy entitlements is excluded where the employee may transfer to the new employer but elects not to do so.

    (2) This subpart does not limit or affect section 77HA of the State Sector Act 1988.

    Section 69L: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69M New employer becomes party to collective agreement that binds employee electing to transfer
  • (1) This section applies if—

    • (a) an employee who elects to transfer to a new employer is a member of a union and bound by a collective agreement; and

    • (b) the new employer is not a party to the collective agreement that the union is a party to.

    (2) On and from the date on which the employee becomes an employee of the new employer, the new employer becomes a party to the collective agreement, but only in relation to, and for the purposes of, that employee.

    Section 69M: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69N Employee who transfers may bargain for redundancy entitlements with new employer
  • (1) This section applies to an employee if—

    • (a) the employee elects, under section 69I(1), to transfer to a new employer; and

    • (b) the new employer proposes to make the employee redundant for reasons relating to the transfer of the employees or to the circumstances arising from the transfer of the employees; and

    • (c) the employee's employment agreement—

      • (i) does not provide for redundancy entitlements for those reasons or in those circumstances; or

      • (ii) does not expressly exclude redundancy entitlements for those reasons or in those circumstances.

    (2) The employee is entitled to redundancy entitlements from his or her new employer.

    (3) If an employee seeks redundancy entitlements from his or her new employer, the employee and new employer must bargain with a view to reaching agreement on appropriate redundancy entitlements.

    Section 69N: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69O Authority may investigate bargaining and determine redundancy entitlements
  • (1) If an employee and his or her new employer fail to agree on redundancy entitlements under section 69N(3), the employee or new employer may apply to the Authority to investigate the bargaining relating to the matter.

    (2) After concluding the investigation, the Authority must determine—

    • (a) if, in the Authority's view, it is possible for the bargaining to continue, how further bargaining should occur; or

    • (b) if, in the Authority's view, further bargaining is not warranted, the redundancy entitlements due to an employee.

    (3) In determining the redundancy entitlements under subsection (2)(b), the Authority may take into account 1 or more of the following matters:

    • (a) the redundancy entitlements (if any) provided in the employee's employment agreement for redundancy in circumstances other than restructuring:

    • (b) the employee's length of service with his or her previous employer and new employer:

    • (c) how much notice of the redundancy the employee has received:

    • (d) the ability of the new employer to provide redundancy entitlements:

    • (e) the likelihood of the employee being re-employed or obtaining employment with another employer:

    • (f) any other relevant matter that the Authority thinks fit.

    Section 69O: substituted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

Subpart 2Disclosure of costs relating to transfer of employees under proposed restructuring

  • Subpart 2: substituted, on 13 December 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OA Object of this subpart
  • The object of this subpart is to provide for the disclosure of employee transfer costs information if—

    • (a) disclosure is sought for the purpose of—

      • (i) deciding whether to terminate an agreement or let it expire; or

      • (ii) negotiating an agreement; or

      • (iii) deciding whether to enter into an agreement; or

      • (iv) tendering for an agreement; and

    • (b) a restructuring would result if the agreement were to be—

      • (i) terminated or to expire; or

      • (ii) concluded; or

      • (iii) entered into; or

      • (iv) awarded.

    Section 69OA: inserted, on 13 December 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OB Interpretation
  • (1) In this subpart, employee transfer costs information, in relation to a proposed restructuring,—

    • (a) means information about the employment-related entitlements of the employees who would be eligible to elect, under section 69I, to transfer to a new employer if the proposed restructuring were to proceed; and

    • (b) includes—

      • (i) the number of employees who would be eligible to elect to do so; and

      • (ii) the wages or salary payable in a stated period (for example, a week, fortnight, or month) to the employees for performing the work that would be subject to the proposed restructuring; and

      • (iii) the total number of hours the employees spend in a stated period (for example, a week, fortnight, or month) performing the work that would be subject to the proposed restructuring; and

      • (iv) the cost of service-related entitlements of the employees whether legislative or otherwise; and

      • (v) the cost of any other entitlements of the employees in their capacity as employees, including any entitlements already agreed but not due until a future date or time.

    (2) Any term or expression defined in subpart 1 and used but not defined in this subpart has the same meaning as in subpart 1.

    Section 69OB: inserted, on 13 December 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OC Disclosure of employee transfer costs information
  • (1) A request for the disclosure of employee transfer costs information may be made if—

    • (a) disclosure is sought for the purpose of—

      • (i) deciding whether to terminate an agreement or let it expire; or

      • (ii) negotiating an agreement; or

      • (iii) deciding whether to enter into an agreement; or

      • (iv) tendering for an agreement; and

    • (b) a restructuring would result if the agreement were to be—

      • (i) terminated or to expire; or

      • (ii) concluded; or

      • (iii) entered into; or

      • (iv) awarded.

    (2) The persons who may make the request are the persons who would, if the restructuring were to proceed and they were parties to the restructuring, be—

    • (a) person A in the definition of contracting in:

    • (b) person B in the definition of contracting out:

    • (c) person C in the definition of subsequent contracting:

    • (d) the person to whom an employer's business (or part of it) is sold or transferred.

    (3) The persons to whom a request may be made are the persons who would, if the restructuring were to proceed and they were parties to the restructuring, be—

    • (a) person B in the definition of contracting in:

    • (b) person A in the definition of contracting out:

    • (c) person A in the definition of subsequent contracting:

    • (d) the seller or transferor in the case of the sale or transfer of an employer's business (or part of it).

    (4) A person to whom a request is made under subsection (3) must provide to the person who made the request under subsection (2) employee transfer costs information that relates to the proposed restructuring.

    (5) A person must provide the employee transfer costs information in sufficient time for the person who made the request to take the information into account for the purpose for which it was requested.

    (6) Employee transfer costs information provided under this section must be provided—

    • (a) in aggregate form; and

    • (b) to the extent practicable, in a form that protects the privacy of the employees concerned.

    Section 69OC: inserted, on 13 December 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OD Provision of employee transfer costs information by other persons
  • (1) Subsection (2) applies to a person who receives a request for employee transfer costs information under section 69OC(3)(a).

    (2) If the request relates (whether wholly or in part) to work that has been subcontracted and the person receiving the request does not have some or all of the information requested, the person must immediately require the subcontractor to provide the information.

    (3) Subsection (4) applies to a person who receives a request for employee transfer costs information under section 69OC(3)(c).

    (4) If the person does not have some or all of the information requested, the person must immediately require the person who performs the work to which the request relates to provide the information.

    (5) If the person who performs the work has subcontracted some or all of the work and does not have some or all of the information requested, the person must immediately require the subcontractor to provide the information.

    (6) A person required to provide information—

    • (a) under subsection (2) or (4) must provide the information—

      • (i) to the person who received the request; and

    • (b) under subsection (5) must provide the information—

      • (i) to the person who required the information; and

      • (ii) in time for the person who received the request to comply with section 69OC(5).

    (7) However, if the subcontractor who is required to provide the information under subsection (2) or (5) does not have some or all of the information requested because the work has been further subcontracted, the subcontractor must immediately provide to the person who required the information any details the subcontractor has about who the other subcontractor is and how to contact the other subcontractor, and (to avoid doubt) subsection (2) or (5) (as the case may require) applies accordingly.

    (8) Employee transfer costs information provided under this section must be provided—

    • (a) in aggregate form; and

    • (b) to the extent practicable, in a form that protects the privacy of the employees concerned.

    Section 69OD: inserted, on 13 December 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OE Updating disclosure of employee transfer costs information
  • (1) This section applies if—

    • (a) employee transfer costs information has been provided under section 69OC or 69OD; and

    • (b) after the provision of the information, there is a change in the employment-related entitlements or circumstances that the information relates to; and

    • (c) the change makes the information provided out of date.

    (2) The person who provided the employee transfer costs information must, immediately after the change in the employment-related entitlements or circumstances, provide to the person who was originally provided with the information details specifying—

    • (a) the information that is out of date; and

    • (b) what the up-to-date information is.

    (3) If the person who is provided with the up-to-date employee transfer costs information is not the person who made the request for the original information under section 69OC,—

    • (a) the person must, immediately after receiving the up-to-date information, provide it to the person who received the request for the original information; and

    • (b) that person must, immediately after receiving the up-to-date information, provide it to the person who made the request for the original information.

    (4) A person is not required to provide up-to-date information if, at the time of the change in the employment-related entitlements or circumstances, a request could not have been made for the information under section 69OC.

    Section 69OE: inserted, on 13 December 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OF Employer who is subject to Official Information Act 1982
  • Nothing in the Official Information Act 1982 (except section 6) enables an employer that is subject to that Act to withhold information that is requested under this subpart.

    Section 69OF: inserted, on 13 December 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OG Subpart prevails over agreement
  • A contract, agreement, or other arrangement has no force or effect to the extent that it is inconsistent with this subpart.

    Section 69OG: inserted, on 13 December 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

Subpart 3Other employees

  • Subpart 3: added, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OH Object of this subpart
  • The object of this subpart is to provide protection to employees to whom subpart 1 does not apply if, as a result of a restructuring, their work is to be performed by or on behalf of another person and, to this end, to require their employment agreements to contain employee protection provisions relating to negotiations between the employer and the other person about the transfer of affected employees to the other person.

    Section 69OH: inserted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OI Interpretation
  • (1) In this subpart, unless the context otherwise requires,—

    employee means an employee to whom Schedule 1A does not apply

    employee protection provision means a provision—

    • (a) the purpose of which is to provide protection for the employment of employees affected by a restructuring; and

    • (b) that includes—

      • (i) a process that the employer must follow in negotiating with a new employer about the restructuring to the extent that it relates to affected employees; and

      • (ii) the matters relating to the affected employees' employment that the employer will negotiate with the new employer, including whether the affected employees will transfer to the new employer on the same terms and conditions of employment; and

      • (iii) the process to be followed at the time of the restructuring to determine what entitlements, if any, are available for employees who do not transfer to the new employer

    new employer, in relation to a restructuring, means,—

    • (a) in the case of a contracting out, person B in the definition of that term; or

    • (b) in the case of a sale or transfer of a business, the person to whom the business is sold or transferred

    restructuring

    • (a) means—

      • (i) contracting out; or

      • (ii) selling or transferring the employer's business (or part of it) to another person; but

    • (b) to avoid doubt, does not include—

      • (i) contracting in; or

      • (ii) subsequent contracting; or

      • (iii) in the case of an employer that is a company, the sale or transfer of any or all of the shares in the company; or

      • (iv) any contract, arrangement, sale, or transfer entered into, made, or concluded while the employer is adjudged bankrupt or in receivership or liquidation.

    (2) For the purposes of this subpart, an employee is an affected employee if,—

    • (a) as a result of a restructuring, the employee is, or will be, no longer required by his or her employer to perform the work performed by the employee; and

    • (b) the type of work performed by the employee (or work that is substantially similar) is, or is to be, performed by or on behalf of another person.

    (3) Any term or expression defined in subpart 1 and used but not defined in this subpart has the same meaning as in subpart 1.

    Section 69OI: inserted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OJ Collective agreements and individual employment agreements must contain employee protection provision
  • Every collective agreement and every individual employment agreement must contain an employee protection provision to the extent that the agreement binds employees to whom this subpart applies.

    Section 69OJ: inserted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OK Affected employee may choose whether to transfer to new employer
  • If an employer, in relation to a restructuring, arranges for an affected employee to transfer to the new employer, the affected employee may—

    • (a) choose to transfer to the new employer; or

    • (b) choose not to transfer to the new employer.

    Section 69OK: inserted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

Subpart 4Review of Part

  • Subpart 4: added, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

69OL Review of operation of Part after 3 years
  • (1) The Minister must, as soon as is practicable, 3 years after the commencement of the Employment Relations Amendment Act 2006, require a report to be prepared on—

    • (a) whether the operation of this Part since the commencement of that Act has met the objects specified in sections 69A and 69OH; and

    • (b) if not, whether any amendments to this Part are necessary or desirable to meet those objects.

    (2) The Minister must ensure that the persons and organisations (including representatives of employees and employers), that the Minister thinks appropriate, are consulted during the preparation of the report about the matters to be considered in the report.

    (3) The Minister must present a copy of the report to the House of Representatives.

    Section 69OL: inserted, on 14 September 2006, by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).

Part 6B
Bargaining fees

  • Part 6B: inserted, on 1 December 2004, by section 30 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

69P Interpretation
  • In this Part, unless the context otherwise requires,—

    bargaining fee means an amount payable by an employee to a union under a bargaining fee clause, whether payable as a lump sum or on a periodical basis

    bargaining fee clause means a provision in a collective agreement that, subject to this Part,—

    • (a) applies to the employer's employees who are not members of a union and who perform work that comes within the coverage clause of the collective agreement; and

    • (b) specifies the amount of the bargaining fee; and

    • (c) requires those employees to pay a bargaining fee; and

    • (d) provides that those employees' terms and conditions of employment comprise the terms and conditions of employment specified in the collective agreement.

    Section 69P: inserted, on 1 December 2004, by section 30 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

69Q Bargaining fee clause does not come into force unless agreed to first by employer and union and then by secret ballot
  • (1) A bargaining fee clause does not come into force unless the clause has—

    • (a) first been agreed to by the employer and the union in a collective agreement; and

    • (b) then been agreed to in a secret ballot held in accordance with this section.

    (2) The secret ballot must be—

    • (a) held before the collective agreement comes into force; and

    • (b) conducted jointly by the employer and union.

    (3) An employee is entitled to vote in a secret ballot if—

    • (a) the work performed by the employee comes within the coverage clause in the collective agreement; and

    • (b) the employee is—

      • (i) not a member of any union; or

      • (ii) a member only of the union that is a party to the collective agreement with the employer.

    (4) For the purposes of a secret ballot, a ballot paper must contain, or have attached to it, a copy of the bargaining fee clause.

    (5) A bargaining fee clause is agreed to in a secret ballot if a majority of the employer's employees who vote, vote in favour of the clause.

    Section 69Q: inserted, on 1 December 2004, by section 30 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

69R Employer to notify employees if bargaining fee clause agreed to
  • (1) If a bargaining fee clause is agreed to in a secret ballot, the employer must provide the employees referred to in section 69S(a) to (c) with a copy of the collective agreement that contains the bargaining fee clause and notify them in writing that—

    • (a) their terms and conditions of employment will comprise the terms and conditions of employment specified in the collective agreement (including the obligation to pay a bargaining fee) on and from the later of the following:

      • (i) the expiry of the period referred to in paragraph (c); or

      • (ii) the date on which the collective agreement comes into force; and

    • (b) the bargaining fee will be deducted from their wages, specifying the amount of the bargaining fee; and

    • (c) if an employee does not wish to pay the bargaining fee, the employee must notify the employer in writing within the period specified in the collective agreement for that purpose that the employee does not agree to pay the bargaining fee.

    (2) If an employee notifies his or her employer that the employee does not agree to pay the bargaining fee,—

    • (a) the bargaining fee clause does not apply to the employee; and

    • (b) the employee's terms and conditions of employment remain the same until such time as varied by agreement with the employer.

    Section 69R: inserted, on 1 December 2004, by section 30 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

69S Which employees bargaining fee clause applies to
  • When a bargaining fee clause has been agreed to in a secret ballot and comes into force, the clause applies to an employee if—

    • (a) the work performed by the employee comes within the coverage clause of the collective agreement; and

    • (b) the employee is not a member of any union; and

    • (c) the employee was—

      • (i) entitled to vote in the secret ballot that agreed to the clause; or

      • (ii) employed in the period beginning immediately after the secret ballot was held and ending with the close of the day before the date on which the collective agreement came into force; and

    • (d) the employee has not notified his or her employer in writing, within the period specified under section 69R(1)(c) that the employee does not agree to pay the bargaining fee.

    Section 69S: inserted, on 1 December 2004, by section 30 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

69T Bargaining fee clause binding on employer and employee
  • While a bargaining fee clause applies to an employee,—

    • (a) the clause is binding on the employee and his or her employer; and

    • (b) the employer must deduct the bargaining fee from the employee's wages and pay it to the union concerned.

    Section 69T: inserted, on 1 December 2004, by section 30 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

69U Amount of bargaining fee
  • (1) A bargaining fee must not be greater than the union fee that an employee would be required to pay to the union if the employee were a member of the union.

    (2) A bargaining fee has no effect to the extent (if any) that the bargaining fee does not comply with subsection (1).

    Section 69U: inserted, on 1 December 2004, by section 30 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

69V Expiry of bargaining fee clause
  • A bargaining fee clause expires when the collective agreement that contains the clause expires.

    Section 69V: inserted, on 1 December 2004, by section 30 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

69W Validity of bargaining fee clause
  • A bargaining fee clause, and anything done under it in accordance with this Part,—

    • (a) is not a breach of, or inconsistent with, this Act (in particular sections 8, 9, 11, and 68(2)(c)); and

    Section 69W: inserted, on 1 December 2004, by section 30 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

Part 6C
Breastfeeding facilities and breaks

  • Part 6C: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69X Interpretation
  • In this Part, unless the context otherwise requires,—

    breastfeeding includes expressing breast milk

    work period has the same meaning as in section 69ZC.

    Section 69X: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69Y Employer's obligation
  • (1) An employer must ensure that, so far as is reasonable and practicable in the circumstances,—

    • (a) appropriate facilities are provided in the workplace for an employee who is breastfeeding and who wishes to breastfeed in the workplace; and

    • (b) appropriate breaks are provided to an employee who is breastfeeding and wishes to breastfeed during a work period.

    (2) For the purpose of subsection (1)(b), the breaks are paid only if the employee and employer agree that they are paid.

    (3) In subsection (1), circumstances includes—

    • (a) the employer's operational environment; and

    • (b) the employer's resources.

    Section 69Y: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69Z Breastfeeding breaks additional to breaks under Part 6D
  • (1) Breastfeeding breaks provided under this Part are in addition to breaks an employee is entitled to under Part 6D.

    (2) However, if an employee and employer agree, the same break may be taken for the purposes of this Part and Part 6D.

    (3) To avoid doubt, a break taken for the purposes of this Part and Part 6D is a paid break to the same extent as it would be if taken separately under Part 6D.

    Section 69Z: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69ZA Code of employment practice relating to employer's obligation
  • As soon as practicable after the commencement of this Part, the Minister must approve, under section 100A, a code of employment practice relating to an employer's obligation under section 69Y.

    Section 69ZA: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69ZB Penalty
  • An employer who does not comply with section 69Y is liable to a penalty imposed by the Authority.

    Section 69ZB: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

Part 6D
Rest breaks and meal breaks

  • Part 6D: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69ZC Interpretation
  • In this Part, unless the context otherwise requires, work period

    • (a) means the period—

      • (i) beginning with the time when, in accordance with an employee's terms and conditions of employment, an employee starts work; and

      • (ii) ending with the time when, in accordance with an employee's terms and conditions of employment, an employee finishes work; and

    • (b) to avoid doubt, includes all authorised breaks (whether paid or not) provided to an employee or to which an employee is entitled during the period specified in paragraph (a).

    Section 69ZC: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69ZD Entitlement to rest breaks and meal breaks
  • (1) An employee is entitled to, and the employer must provide the employee with, rest breaks and meal breaks in accordance with this Part.

    (2) If an employee's work period is 2 hours or more but not more than 4 hours, the employee is entitled to one 10-minute paid rest break.

    (3) If an employee's work period is more than 4 hours but not more than 6 hours, the employee is entitled to—

    • (a) one 10-minute paid rest break; and

    • (b) one 30-minute meal break.

    (4) If an employee's work period is more than 6 hours but not more than 8 hours, the employee is entitled to—

    • (a) two 10-minute paid rest breaks; and

    • (b) one 30-minute meal break.

    (5) If an employee's work period is more than 8 hours, the employee is entitled to—

    • (a) the same breaks as specified in subsection (4); and

    • (b) the breaks as specified in subsections (2) and (3) as if the employee's work period had started at the end of the eighth hour.

    Section 69ZD: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69ZE When employer to provide rest breaks and meal breaks
  • (1) Rest breaks and meal breaks are to be observed during an employee's work period—

    • (a) at the times agreed between the employee and his or her employer; but

    • (b) in the absence of such an agreement, as specified in subsections (2) to (5).

    (2) Where section 69ZD(2) applies, an employer must, so far as is reasonable and practicable, provide the employee with the rest break in the middle of the work period.

    (3) Where section 69ZD(3) applies, an employer must, so far as is reasonable and practicable, provide the employee with—

    • (a) the rest break one-third of the way through the work period; and

    • (b) the meal break two-thirds of the way through the work period.

    (4) Where section 69ZD(4) applies, an employer must, so far as is reasonable and practicable, provide the employee with—

    • (a) the meal break in the middle of the work period; and

    • (b) a rest break halfway between—

      • (i) the start of work and the meal break; and

      • (ii) the meal break and the finish of work.

    (5) Where section 69ZD(5) applies, an employer must, so far as is reasonable and practicable, provide the employee with the rest breaks and meal breaks in accordance with the applicable provision in subsections (2) to (4).

    Section 69ZE: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69ZF Penalty
  • An employer who does not comply with sections 69ZD and 69ZE is liable to a penalty imposed by the Authority.

    Section 69ZF: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69ZG Relationship between Part and employment agreements
  • (1) This Part does not prevent an employer providing an employee with enhanced or additional entitlements to rest breaks and meal breaks (whether specified in an employment agreement or otherwise) on a basis agreed with the employee.

    (2) An employment agreement that excludes, restricts, or reduces an employee's entitlements under section 69ZD

    • (a) has no effect to the extent that it does so; but

    Section 69ZG: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

69ZH Relationship between Part and other enactments
  • (1) Where an employee is provided with, or entitled to, rest breaks or meal breaks under another enactment,—

    • (a) this Part prevails if the breaks provided under this Part are additional or enhanced breaks:

    • (b) the other enactment prevails if the breaks provided under the other enactment are additional or enhanced breaks.

    (2) Despite subsection (1), where an employee is a person who is required to take a rest break by, or under, another enactment, the requirement for a rest break defined by, or under, the other enactment applies instead of the provisions or entitlements for rest breaks or meal breaks provided under this Part.

    Section 69ZH: inserted, on 1 April 2009, by section 6 of the Employment Relations (Breaks, Infant Feeding, and Other Matters) Amendment Act 2008 (2008 No 58).

Part 7
Employment relations education leave

70 Object of this Part
  • The object of this Part is to provide paid leave to certain employees to increase their knowledge about employment relations for the purpose of—

    • (a) improving relations among unions, employees, and employers; and

    • (b) promoting the object of this Act, especially the duty of good faith.

71 Interpretation
  • In this Part, unless the context otherwise requires,—

    eligible employee, in relation to a union or an employer, means an employee who is a member of a union

    employment relations education means employment relations education approved under section 72

    specified date means—

    • (a) 1 March; or

    • (b) such other date in a year as is specified in a collective agreement for the purposes of this Part

    year means,—

    • (a) if a collective agreement does not provide a specified date as an alternative date to 1 March, a period of 12 months beginning on 1 March and ending on the close of the last day of February in the following year, the first such year being 1 March 2001 to 28 February 2002:

    • (b) if a collective agreement does provide a specified date as an alternative date to 1 March, a period of 12 months beginning on the specified date.

    Section 71 eligible employee: substituted, on 1 December 2004, by section 31 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

72 Minister to approve employment relations education
  • (1) The Minister may, for the purposes of this Part, approve courses of employment relations education.

    (2) The Minister may approve a course of employment relations education only if satisfied that the course will further the object of this Part.

    (3) The Minister may delegate his or her power under subsection (1) to 1 or more persons.

    Section 72(1): amended, on 1 December 2004, by section 32 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

73 Union entitled to allocate employment relations education leave
  • (1) A union is entitled to allocate employment relations education leave to eligible employees in accordance with this Part.

    (2) The maximum number of days of employment relations education leave that a union is entitled to allocate in a year in respect of an employer's eligible employees is the number of days calculated in accordance with section 74, unless the employer agrees to the allocation of additional days.

    (3) The maximum number of days of employment relations education leave that a union is entitled to allocate in a year to an eligible employee is 5 days, unless the employee's employer agrees to the allocation of additional days.

    (4) Employment relations education leave expires if it is not allocated by the end of the year in respect of which it is calculated under section 74, unless the employer agrees that the leave may be carried forward to the next year.

74 Calculation of maximum number of days of employment relations education leave
  • (1) The maximum number of days of employment relations education leave that a union is entitled to allocate in respect of an employer is based on the number of full-time equivalent eligible employees employed by the employer as at the 30th day before the specified date in a year, and is determined in accordance with the following table:

    Full-time equivalent eligible employees as at the 30th day before the specified date in a yearMaximum number of days of employment relations education leave that union entitled to allocate
    1–53
    6–505
    51–2801 day for every 8 full-time equivalent eligible employees or part of that number
    281 or more35 days plus 5 days for every 100 full-time equivalent eligible employees or part of that number that exceeds 280

    (2) For the purposes of calculating the number of full-time equivalent eligible employees employed by an employer,—

    • (a) an eligible employee who normally works 30 hours or more during a week is to be counted as 1:

    • (b) an eligible employee who normally works less than 30 hours during a week is to be counted as one-half.

    Section 74(1): amended, on 1 December 2004, by section 33(1) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

    Section 74(1) table column 1 heading: amended, on 1 December 2004, by section 33(2) of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

75 Union to notify employer of maximum number of days of employment relations education leave calculated
  • (1) After calculating the maximum number of days of employment relations education leave, a union must give the employer concerned a notice containing—

    • (a) the maximum number of days calculated in respect of the employer; and

    • (b) the details of the calculation.

    (2) The union must comply with subsection (1) within 1 month after the specified date in each year.

    (3) Until a union complies with this section, the union must not allocate employment relations education leave.

    (4) If a union fails to comply with subsections (1) and (2), the union forfeits one-twelfth of the employment relations education leave for each complete month that the failure continues.

76 Allocation of employment relations education leave calculated in respect of another employer
  • (1) This section applies to a union that is a party to a collective agreement with 2 or more employers.

    (2) A union may allocate employment relations education leave calculated in respect of an employer to 1 or more eligible employees of another employer only if, and to the extent that, the employers concerned agree, and subject to any terms and conditions agreed with the employers.

77 Allocation of employment relations education leave to eligible employee
  • (1) A union allocates employment relations education leave to an eligible employee by giving a notice to the employee, and a copy of the notice to the employee's employer, that informs the employee—

    • (a) that the union has allocated employment relations education leave to the employee; and

    • (b) of the number of days of employment relations education leave allocated to the employee; and

    • (c) that the employee must take the employment relations education leave by the end of the year in which it is allocated; and

    (2) The allocation of employment relations education leave does not, of itself, entitle the employee to take the leave.

78 Eligible employee proposing to take employment relations education leave
  • (1) An eligible employee proposing to take employment relations education leave must tell his or her employer—

    • (a) that the employee proposes to take that leave; and

    • (b) the dates on which the employee proposes to take that leave; and

    • (c) the employment relations education that the employee proposes to undertake during that leave.

    (2) An eligible employee must not take employment relations education leave unless the employee complies with subsection (1) as soon as possible, but in any event no later than 14 days before the first day of such leave.

    (3) An employer may refuse to allow an eligible employee to take employment relations education leave if the employer is satisfied, on reasonable grounds, that the employee taking employment relations education leave on the dates notified would unreasonably disrupt the employer's business.

    (3A) To avoid doubt, a representative of an eligible employee may comply with subsection (1) on behalf of the eligible employee.

    (4) In subsection (2), day means a day of the week other than a day in the period beginning with 25 December in any year and ending with 5 January in the following year.

    Section 78(3A): inserted, on 1 December 2004, by section 34 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

79 Eligible employee taking employment relations education leave entitled to ordinary pay
  • (1) An employer must pay to an eligible employee the employee's relevant daily pay (as defined in section 9 of the Holidays Act 2003) for every day or part of a day taken by the employee as employment relations education leave.

    (2) However, an employer is not required to comply with subsection (1) in respect of any day for which the eligible employee is paid weekly compensation under the Injury Prevention, Rehabilitation, and Compensation Act 2001.

    Section 79(1): amended, on 1 April 2004, by section 91(2) of the Holidays Act 2003 (2003 No 129).

    Section 79(2): amended, on 1 April 2002, by section 337(1) of the Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49).

Part 8
Strikes and lockouts

80 Object of this Part
  • The object of this Part is—

    • (a) to recognise that the requirement that a union and an employer must deal with each other in good faith does not preclude certain strikes and lockouts being lawful (as defined in this Part); and

    • (b) to define lawful and unlawful strikes and lockouts; and

    • (c) to ensure that where a strike or lockout is threatened in an essential service, there is an opportunity for a mediated solution to the problem.

Interpretation

81 Meaning of strike
  • (1) In this Act, strike means an act that—

    • (a) is the act of a number of employees who are or have been in the employment of the same employer or of different employers—

      • (i) in discontinuing that employment, whether wholly or partially, or in reducing the normal performance of it; or

      • (ii) in refusing or failing after any such discontinuance to resume or return to their employment; or

      • (iii) in breaking their employment agreements; or

      • (iv) in refusing or failing to accept engagement for work in which they are usually employed; or

      • (v) in reducing their normal output or their normal rate of work; and

    • (b) is due to a combination, agreement, common understanding, or concerted action, whether express or implied, made or entered into by the employees.

    (2) In this Act, strike does not include an employees' meeting authorised—

    • (a) by an employer; or

    • (b) by an employment agreement; or

    • (c) by this Act.

    (3) In this Act, to strike means to become a party to a strike.

    Compare: 1991 No 22 s 61

82 Meaning of lockout
  • (1) In this Act, lockout means an act that—

      <