{"id":226366,"date":"2024-04-22T17:44:21","date_gmt":"2024-04-22T04:44:21","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=226366"},"modified":"2024-05-16T19:45:44","modified_gmt":"2024-05-16T06:45:44","slug":"employment-relations-act","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/employment-relations-act\/","title":{"rendered":"Understanding the Employment Relations Act: Key Sections and Implications for Employers"},"content":{"rendered":"\n<p>The <a href=\"https:\/\/www.legislation.govt.nz\/act\/public\/2000\/0024\/latest\/DLM58317.html\"><em>Employment Relations Act 2000<\/em><\/a> is one of the key pieces of legislation that employers should understand. This Act governs the relationship between employers, employees and other groups, including unions. Further, the Act also establishes a personal grievance process, for when you and your employees are in a dispute. This process outlines what court systems are available to solve these relationship disputes. If you and your employee cannot resolve the issue between yourselves, you may need to rely on the court system. This article explains the key sections of the <em>Employment Relations Act<\/em> and how to ensure you effectively enforce employment standards.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Employment-Related Legislation<\/h2>\n\n\n\n<p>The <em>Employment Relations Act<\/em> (the &#8216;Act&#8217;) is the main piece of employment law legislation that you, as an employer, should be aware of. That said, you, as an employer, need to be aware of other legislative instruments that govern different aspects of employment law. The main pieces of legislation that you should be aware of are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Holidays Act 2003<\/em>;<\/li>\n\n\n\n<li><em>Wages Protection Act 1983<\/em>;<\/li>\n\n\n\n<li><em>Parental Leave and Employment Protection Act 1987<\/em>;<\/li>\n\n\n\n<li><em>Minimum Wage Act 1983<\/em>;<\/li>\n\n\n\n<li><em>Health and Safety at Work Act 2015<\/em>;<\/li>\n\n\n\n<li><em>Equal Pay Act 1972<\/em>;<\/li>\n\n\n\n<li><em>Human Rights Act 1993<\/em>;<\/li>\n\n\n\n<li><em>Protected Disclosures Act 2000<\/em>; and<\/li>\n\n\n\n<li><em>Privacy Act 2020<\/em>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The Basics of the <em>Employment Relations Act<\/em><\/h2>\n\n\n\n<p>The main purpose of the Act is to ensure that employment relationships are conducted with good faith. This focuses heavily on the trust between yourself, as the employer and your employees. There is an obvious power imbalance in an employment relationship. Naturally, this power imbalance generally favours you and not your employees. To address the power imbalance, the Act also encourages collective bargaining. Lastly, the<em> <\/em>Act, encourages you and your employees to attempt mediation to resolve any employment dispute prior to attending court.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Good Faith Obligations in Employment Relationships<\/h3>\n\n\n\n<p>The concept of <a href=\"https:\/\/legalvision.co.nz\/employment\/good-faith-obligation\/\">good faith<\/a> is built upon notions of trust and confidence. Good faith has to be demonstrated on both sides. Both you and your employee must act in good faith. In doing so, you and your employees maintain a positive and productive employment relationship.\u00a0<\/p>\n\n\n\n<p>There are three main components to the good faith principles, which are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ensuring transparency and honesty without deception or misleading intentions;<\/li>\n\n\n\n<li>maintaining open communication and responsiveness throughout the process; and<\/li>\n\n\n\n<li>offering comprehensive information in situations where an employee&#8217;s job may be at risk to encourage clarity and the employee&#8217;s input. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Personal Grievances and Disputes<\/h3>\n\n\n\n<p>Employees are able to raise a personal grievance under the Act. Your employees may raise a personal grievance for any of the following reasons:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>unjustified dismissal;<\/li>\n\n\n\n<li>unjustified disadvantage (if a condition of the employment is or was disadvantageous by an unjustifiable action by the employer);<\/li>\n\n\n\n<li>racial or sexual harassment;<\/li>\n\n\n\n<li>duress or coercion due to membership or non-membership of a union or organisation; or<\/li>\n\n\n\n<li><a href=\"https:\/\/legalvision.co.nz\/employment\/employer-guide-workplace-discrimination\/\">discrimination<\/a>.<\/li>\n<\/ul>\n\n\n\n<p>Your employee has 90 days from when the grievance arose or came to an employee\u2019s attention to raise it. The 90-day period commences from whichever of the two dates is later. For personal grievances related to sexual harassment, your employees have 12 months to raise a personal grievance. This time period activates from when the grievance arose or when it came to your employee\u2019s attention. This was extended on 13 June 2023 from 90 days to 12 months.<\/p>\n\n\n\n<p>If a dispute is raised, you must do your best to work with your employee to resolve the dispute. You both may do this via negotiation or mediation, for instance. Employees may raise a personal grievance outside of the notice period if you agree to it. However, if you do not agree, they must raise it with the Employment Relations Authority on the grounds of exceptional circumstances.<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left 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In this event, your employee may then make a claim for the dispute to be heard by the Employment Relations Authority. The Employment Relations Authority is able to award remedies, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>reinstatement (permanent and interim);<\/li>\n\n\n\n<li>reimbursement;<\/li>\n\n\n\n<li>compensation for hurt and humiliation; and&nbsp;<\/li>\n\n\n\n<li>greater compliance from employers regarding their duties and responsibilities towards employees.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The decision the Employment Relations Authority makes may not be welcomed by you or your employee. If this is the case, you may appeal the decision to the <a href=\"https:\/\/legalvision.co.nz\/employment\/claim-employment-court\/\">Employment Court<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Penalties for Breach of the Act<\/h2>\n\n\n\n<p>It is quite possible the Employment Relations Authority could find in your employee\u2019s favour, regarding the dispute. In which event, the Employment Relations Authority could order you, as an employer, to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>pay a financial penalty for breaching the <a href=\"https:\/\/legalvision.co.nz\/employment\/employment-agreement\/\">employment agreement<\/a>;<\/li>\n\n\n\n<li>pay money under the terms of the employment agreement (i.e. leave entitlements or any other compensation that was part of the agreement); or<\/li>\n\n\n\n<li>require you to perform a duty or comply with the law (i.e. reinstatement of the employee).&nbsp;<\/li>\n<\/ul>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2023\/08\/18195054\/nz-corporate-governance-guide-560px.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Corporate Governance Guide for SMEs in NZ<\/div>\n            <div class=\"body-text\">\n                <p>Download our free guide to understand your corporate governance responsibilities.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/nz-corporate-governance-guide.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways&nbsp;<\/h2>\n\n\n\n<p>It is crucial that you, as an employer, understand the <em>Employment Relations Act 2000<\/em>. This law governs the relationship between you, your employees and other groups, including your employees\u2019 union. Furthermore, it outlines the process by which you and your employees can resolve your disputes. Key sections include the:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>good faith obligations;&nbsp;<\/li>\n\n\n\n<li>your employees\u2019 collective bargaining rights; and&nbsp;<\/li>\n\n\n\n<li>provisions facilitating mediation if required.<\/li>\n<\/ul>\n\n\n\n<p>Personal grievances can be raised by employees for unjust dismissal, disadvantage, harassment or discrimination. The Employment Relations Authority can hear disputes unresolved through negotiation or mediation. If you breach the Act,<em> <\/em>you may face fines or be compelled to abide by compensation orders.&nbsp;<\/p>\n\n\n\n<p>If you need help determining whether you are in compliance with the <em>Employment Relations Act 2000<\/em>, contact our experienced <a href=\"https:\/\/legalvision.co.nz\/employment-lawyers-lp\">employment lawyers<\/a> as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <a href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page<\/a>.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Employment Relations Act 2000 is one of the key pieces of legislation that employers should understand. This Act governs the relationship between employers, employees and other groups, including unions. Further, the Act also establishes a personal grievance process, for when you and your employees are in a dispute. This process outlines what court systems<a href=\"https:\/\/legalvision.co.nz\/employment\/employment-relations-act\/\">Continue reading <span class=\"sr-only\">&#8220;Understanding the Employment Relations Act: Key Sections and Implications for Employers&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13387,"featured_media":215538,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"205803,203420,208230,213814,217749,2082","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[5],"tags":[191,375,576,2168,2169],"class_list":["post-226366","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-employees","tag-employment-law","tag-employers","tag-employment-relations-act","tag-legal-compliance"],"acf":[],"yoast_head":"<!-- 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