Fair Pay Agreements

It’s the 1st of the December and that means… Fair Pay Agreement legislation comes into effect ❗ The new bargaining system received a lot of controversy during the parliamentary process, but is now officially New Zealand legislation.

So, what does that mean? In a nutshell, the Fair Pay Agreement system brings together unions and employers to bargain minimum employment terms for all employees in a specific industry or occupation. Minimum terms can include things such as standard hours, minimum pay rates or what benefits/leave entitlements an employee can have.

Unions can apply to initiate bargaining if supported by the public interest test, or the representation test – meaning 1,000 workers or 10% of covered workers support the application. If approved, employers must engage in negotiation through their industry representative.

#employmentlaw #update