|
|
|
 EMPLOYMENT
RELATIONS ACT, 2000
|
The purpose of the act is to build productive employment relationships by encouraging mutual trust and confidence in all areas of the employee-employer relationship (Small Business Company, 2004). The act was based on the fact that “employment is a human relationship and is not simply a contractual, economic exchange”, hence stresses the high importance that employers act reasonably and fairly at all times (BIZ, 2004b).
In an effort to build ‘productive employment relationships’, the act promotes the need for good faith in building employment relationships, more power equality in bargaining employment agreements, collective bargaining, mediation rather than court arbitration and individual choice (BIZ, 2004b).
The act also specifies minimum standards required in an employment relationship, including who is an employee, union information, collective bargaining, holidays and pay, and parental leave requirements (BIZ, 2004b).
Every employer needs to be aware of the act, but if employers and employees (and unions) are open and honest with each other, and operate in good faith, then most disputes should be able to be resolved peacefully, without court arbitration (BIZ, 2004b).
Good Faith
The Employment Relations Act, 2000 states that employees (and unions) and employers must work with each other in good faith. This basically means that both parties should not do anything to deceive or mislead each other (both directly and indirectly) (Install Law, 2004b). Both parties must adhere to this ‘good faith’ agreement when negotiating contracts, for instance. This good faith does not apply to potential employees, but the act does lay out a few ground rules, protecting the prospective employee from the imbalance of power (see ‘bargaining’ section, below) (Install Law, 2004b). An extensive ‘code of good faith’ has been drawn up, and needs to be adhered to when bargaining (ERS, 2004b).
Employment Agreements
It is a legal necessity to have a written agreement for every employee. This is called an employment agreement. The employment agreement constitutes things like the parties involved, the job description with the position and duties described, both parties’ obligations, the place/hours of work, bonuses, holidays, redundancy and termination of employment (ERS, 2004e).
The employment relations service makes it easy for you to create your own employment agreement draft online at:
http://www.ers.dol.govt.nz/relationships/builder/
It is recommended, however, that you get legal advice before putting employment agreements in action.
Collective vs. Individual Employment Agreements
Collective employment agreements are for unions, and individual employment agreements are for individuals. Employees have the right to choose whether or not to join a union. The employer cannot put undue pressure on the employee to join, or not to join a union (ERS, 2004b). Both collective and individual employment agreements can be negotiated under the act. Only unions can negotiate under collective agreements however, and to qualify as a union, it has to be registered with the Department of Labour and abide by its conditions. Individuals can negotiate collectively, but each individual must have an individual agreement (Install Law, 2004b).
If a union makes a proposal, the employer has the legal responsibility to meet with it and consider its suggestions. If a proposal is rejected, reasons must be given according to the act (Install Law, 2004b). All of this of course must be done
in ‘good faith’ (see above).
Collective Employment Agreements
The agreement must be signed by both parties (the union and the employer) to take effect (Install Law, 2004b). The agreement must contain several things, including a coverage clause, obligations, how to make a complaint, and an expiry date (Install Law, 2004b). The agreement can also include company policies. Having them on the collective employment agreement makes them binding.
Individual Employment Agreements
The individual employment agreement must also contain certain things, including the names of those involved, a description of the work, an indication of where the work is to be done, hours of work, the wages/salary, and how to make a complaint (Install Law, 2004b). As with collective employment agreements, these agreements may contain company policies and a variety of other issues (e.g. confidentiality clause).
Offering Employment
All job advertisements, interviews, application forms and job offers must comply with the Human Rights Act, 1993 and not discriminate on a number of different variables (discussed in further detail in ‘Equal Pay Act, 1972 and Human Rights Act, 1993’ section) (ERS, 2004g). Employers must also not use deception in advertising or offering employment positions, so as to comply with the Fair Trading Act, 1986 (ERS, 2004g).
Before you advertise a new job opening, you must be clear exactly what it entails. This is because the individual employment agreement must include a description of the work, times to be worked, wages to be paid and where the work is to be done (Small Business Company, 2004). Your advertisement can be derived from the job description in your employment agreement (BIZ, 2004o)
Before you conduct any interviews, you must be prepared with a written employment agreement, and advise your perspective employee that they may obtain independent advice (and give them a reasonable opportunity to do so). Failure to do so could result in a $5,000 fine for an individual, or a $10,000 fine for a company (Small Business Company, 2004).
Once a suitable candidate is found, a written job offer needs to be made and sent out to the candidate, along with the employment agreement. The Employment Relations Service has template letters, which meet the regulations of the employment relations act. These are found at:
http://www.ers.dol.govt.nz/relationships/letters.html
Cover letters differ according to whether the candidate is a union member or non-union member, and the agreement is collective or individual (ERS, 2004d). The procedures are also different, for instance if the job is under a union’s collective agreement the new employee will be covered under that agreement for 30 days while he/she decides whether he/she wants to be in the union or not (BIZ, 2004h).
Bargaining
Any bargaining conducted for the individual employment agreement cannot be unfair and must be in good faith (see above). If the employee is unable to understand the terms of the agreement for any reason, special care must be taken (Small Business Company, 2004). If need be, both parties may appoint a representative to deal with employment agreement issues (Install Law, 2004b). If bargaining is deemed as fair, one party may not unduly pressure the other, the employer must allow the employee to seek independent advice (and give sufficient time to do so), and one party must not rely on the knowledge/skill of the other while negotiating (ACE, 2004).
For a list of references, click here.
Disclaimer: U-Turn Internet Services Ltd. (or any of its
partners, subsidiaries or affiliates) is not responsible for any
results attained or not attained from reading or applying the above
resources. You should always consult a qualified professional
attorney, business, or tax/bookkeeping advisor for advice as to how
the law pertains to your particular situation and business.
The accuracy or completeness of the resources is also by no
means guaranteed. They should be treated as 'an opinion'.
Use at your own risk. In addition, U-Turn Internet Services
Ltd. is not responsible for the content of the articles either on
this site, or on external websites. These resources should not
be used as a substitute for professional or legal advice, they
are merely intended to give you a helping hand or point you in the
right direction. Articles housed on U-Turn's servers (unless
otherwise stated) are believed to be public domain - if this is not
the case, please contact us and we will remove them.
|
