Employment Relations Act 2000
It has arrived! We are now moving into a new era of Industrial Relations in New Zealand with the passing of the Employment Relations Act into law effective from 2 October 2000.
There are a number of changes and amendments to the original draft Bill which are highlighted here for you.
Contractors
Changes to the definition of an employee have been included to clarify who is deemed to be an employee versus a contractor. People such as independent contractors, volunteers, real estate agents and share milkers for example are treated as contractors under the Act. Employers however will still not be able to avoid the obligations under employment law by suggesting someone is a contractor when for all intents and purposes they are employees.
Bargaining
The Act will now allow communication with employees on issues relating to terms and conditions during the bargaining process, but still prohibits actual bargaining directly with employees. Employers or unions are not permitted to do anything that undermines the other party or the actual bargaining process.
Provision of information
This provision has been amended to now limit information requested during bargaining to information that is reasonably necessary to substantiate, support or respond to a claim. If the information is deemed confidential it can be provided to a mutually agreed third party.
Continuity of employment
The draft Bill provided for continuity of employment for employees under a collective agreement. This has been amended and the Act instead now requires collective agreements to include a clause that states what will happen, and how, if any work is contracted out or if part or whole of the business is sold.
Employment relationship problems
Under the Act (as opposed to the draft Bill) employers will not have to provide a notice to employees about the process for resolving employment relationship problems upon their appointment and again on their termination. Instead the Act now simply requires all agreements to include an explanation of the process.
Fixed term contracts
This area has also been amended with the Act now allowing fixed term contracts subject to:
- The employer having a genuine reason for offering a fixed term contract
- The employee being advised of the reasons for the fixed term contract and that it is a fixed-term contract, (prior to acceptance of the contract), and
- The employee being advised their employment will cease at the end of the term of the contract.
The Act however does not allow employers to utilise this provision to avoid employment law obligations.
Strikes and lockouts
The draft Bill prohibited the use of other employees to undertake work normally performed by striking employees.
This has been amended in the Act to allow employers to use existing employees, where they agree to work and perform the work of those on strike. Based on health and safety grounds additional employees may be engaged to perform the work of those on strike.
There are further changes in the Act particularly in the simplification of language used and the combination of sections to make it easier to read and understand.
A summary of the Act can be found under the EMPLOYMENT ACTS section (Subscriber access only).
