You are here:
NZLII >>
Databases >>
New Zealand Bill of Rights Act Reports >>
2017 >>
[2017] NZBORARp 38
Database Search
| Name Search
| Recent Documents
| Noteup
| LawCite
| Download
| Help
Employment (Pay Equity and Equal Pay) Bill (Consistent) (Sections 14, 19) [2017] NZBORARp 38 (29 June 2017)
Last Updated: 7 January 2019
29 June 2017
Hon Christopher Finlayson QC, Attorney-General
LEGAL ADVICE
LPA 01 01 21
Consistency with the New Zealand Bill of Rights Act 1990: Employment (Pay Equity
and Equal Pay) Bill 2017
Purpose
- We
have considered whether the Employment (Pay Equity and Equal Pay) Bill
(‘the Bill’) is consistent with the rights and
freedoms affirmed in
the New Zealand Bill of Rights Act 1990 (‘the Bill of Rights
Act’).
- We
have not yet received a final version of the Bill. This advice has been prepared
with the latest version of the Bill (PCO 19861/24.0).
We will provide you with
further advice if the final version of the Bill includes amendments that affect
the conclusions in this
advice.
- We
have concluded that the Bill appears to be consistent with the rights and
freedoms affirmed in the Bill of Rights Act. In reaching
that conclusion, we
have considered the consistency of the Bill with s 14 (freedom of expression)
and s 19 (freedom from discrimination).
Our analysis is set out
below.
The Bill
- The
Bill repeals and replaces the Equal Pay Act 1972 and the Government Service
Equal Pay Act 1960. It also makes amendments to the
Employment Relations Act
2000.
- The
purpose of the Bill is to:
- promote
enduring settlement of claims regarding sex discrimination on pay equity
grounds
- provide
for the elimination of existing and prevention of future sex discrimination in
remuneration and other terms and conditions
of employment
- set
out the different processes by which employees may make claims relating to sex
discrimination, and
- re-enact,
in an up-to-date form, the relevant provisions of the Equal Pay
Act.
- To
that end, the Bill sets up processes for employees to make the following
claims:
- equal
pay claims, which are claims alleging that the rate of remuneration paid
discriminates on the basis of sex between employees
who perform the same or
substantially similar work
- unlawful
discrimination (non-remuneration) claims, which are claims alleging that the
terms and conditions of employment (other than
remuneration) discriminate on the
basis of sex between employees who perform the same or substantially similar
work, and
- pay
equity claims, which are claims that for work that is exclusively or
predominantly performed by female employees, the rate of
remuneration paid for
the work contains an element of sex-based
discrimination.
Consistency of the Bill with the Bill of Rights Act
Section 14 – Freedom of expression
- Section
14 of the Bill of Rights Act affirms the right to freedom of expression,
including the freedom to seek, receive, and impart
information and opinions of
any kind in any form. The right to freedom of expression has also been
interpreted as including the
right not to be compelled to say certain things or
to provide certain information.1
- Parties
to a pay equity claim who are having difficulties in resolving that claim may
seek the assistance of the Employment Relations
Authority in resolving those
difficulties, through a process called facilitation. Clause 33(2) of the Bill
provides that a party
to facilitation may only make a public statement about
facilitation if it is made in good faith, and limited to the process of
facilitation
or the progress being made. The clause therefore appears to limit s
14 of the Bill of Rights Act.
- Where
a provision is found to limit a particular right or freedom, it may nevertheless
be consistent with the Bill of Rights Act if
it can be considered a reasonable
limit that is justifiable in terms of s 5 of that Act.
- We
consider that the limitation arising from cl 33(2) is justified under s 5 of the
Bill of Rights Act. First, the objectives of promoting
enduring settlement of
pay equity claims and eliminating sex discrimination in employment are
sufficiently important. Further, we
consider a requirement that parties to
facilitation maintain confidentiality in that process is rationally connected to
those objectives.
- As
cl 33(2) still allows for public statements to be made about facilitation
processes and progress, we consider it impairs the right
to freedom of
expression no more than is reasonably necessary. Further, given the importance
of confidentiality to the use of facilitation
to resolve employment claims, the
limits are in due proportion to the importance of the objective. In particular,
we are advised
that settlement is more likely to be achieved if parties to
facilitation can make representations in a confidential and without prejudice
manner.
- A
number of clauses in the Bill also compel the provision of certain
information:
- clause
16 provides that an employer who receives a pay equity claim must notify other
employees, doing the same work, that a pay equity
claim has been made
- clause
17 requires employers to give notice to an employee of whether they view the
employee’s pay equity claim as having merit
1 RJR MacDonald v
Attorney-General of Canada (1995) 127 DLR (4th) 1.
- clause
19 requires employers, where pay equity claims have been consolidated, to
provide all claimants with one another’s names
and addresses (except where
a claimant has requested confidentiality)
- clause
22 requires parties to a pay equity claim to provide each other information that
is reasonably required to support or substantiate
the claim or a response to the
claim, and
- clause
41 requires employers to keep records about pay equity claims, with failure to
do so attracting a penalty of up to $2,000.
- We
consider any limitations arising from these provisions to be justified under s 5
of the Bill of Rights Act. First, the provisions
form part of a mechanism that
aims to promote enduring settlement of pay equity claims and the elimination of
sex discrimination
in employment. We consider these objectives to be
sufficiently important. Requiring employers to keep records and to provide
information
about claims and other claimants to employees is rationally
connected to those objectives. The requirement that parties provide relevant
information to each other us also rationally connected to those objectives.
- The
provisions relate to information that is factual in nature, and there are
safeguards in cases where claimants request confidentiality.
We therefore
consider the provisions impair the right to freedom of expression no more than
is reasonably necessary in order to achieve
the objectives, and the limits are
in due proportion to the importance of those objectives.
- For
these reasons, we conclude that any limits to the freedom of expression imposed
by the Bill are justified under s 5 of the Bill
of Rights
Act.
Section 19 – Freedom from discrimination
- Section
19 of the Bill of Rights Act affirms that everyone has the right to freedom from
discrimination on the grounds set out in
the Human Rights Act 1993, including
sex.2
- The
key questions in assessing whether there is a limit on the right to freedom from
discrimination are:3
- does
the legislation draw a distinction on one or more of the prohibited grounds of
discrimination under s 21 of the Human Rights
Act and, if so,
- does
the distinction involve material disadvantage to one or more classes of
individuals?
- In
determining if a distinction arises, consideration is given to whether the
legislation proposes that two comparable groups of people
be treated differently
on one or more of the prohibited grounds of discrimination.4
The distinction analysis takes a purposive and
2 Human Rights Act 1993, s 21(1)(a).
3 See, for example, Atkinson v Minister of Health
and others [2010] NZHRRT 1; McAlister v Air New Zealand [2009] NZSC
78; and Child Poverty Action Group v Attorney-General [2008] NZHRRT
31.
4 Quilter v Attorney-General [1997] NZCA 207; [1998] 1 NZLR
523 (CA) at [573] per Tipping J (dissenting) relied on in Atkinson v Minister
of Health and others [2010] NZHRRT 1 at [199]; McAlister v Air New
Zealand [2009] NZSC 78 at [34] per Elias CJ, Blanchard and Wilson JJ and at
[51] per Tipping J; and Child Poverty Action Group v Attorney-General
[2008] NZHRRT 31 at [137].
untechnical approach to avoid artificially ruling out
discrimination.5 Once a distinction on prohibited
grounds is identified, the question of whether disadvantage arises is a factual
determination.6
Limitation on back pay in pay equity claims
- Monetary
claims (for example equal pay claims under both the Equal Pay Act and the Bill,
and minimum wage claims) generally have a
six year limitation on back pay.
Clause 40 provides that, where the Employment Relations Authority determines a
pay equity claim,
the back pay awarded may only be paid in respect of the period
beginning with the date the claim was lodged, instead of six years
prior. This
limitation does not apply to pay equity settlements negotiated between employers
and employees. It also does not apply
to other types of claims under the Bill,
such as equal pay claims.
- Pay
equity claims by definition relate to work exclusively or predominantly
performed by women, so the limitation on back pay in such
claims
disproportionately affects women. The Equal Pay Act, which is repealed by this
Bill, allows for back pay to six years. We
note that all existing and
undetermined pay equity claims brought under the Equal Pay Act will be
discontinued under the Bill in
accordance with the transitional provisions at
Schedule 1, and recommenced under the provisions of the Bill. Accordingly, this
change
will also impact on those existing unresolved pay equity claims.
- We
therefore consider the material effect of cl 40 disproportionately affects
women, and therefore that the Bill limits the right
to be free from
discrimination on the prohibited grounds of sex affirmed in s 19(1) of the Bill
of Rights Act.
- In
our view, the limitation is justified under s 5 of the Bill of Rights Act
because:
- the
Bill aims to implement a pay equity bargaining framework, to address historical
discrimination against predominately female professions
- back
pay has been limited to the date of lodging the claim to ensure the process is
balanced and fairly reflects the nature of the
grievance
- it
is a necessary restriction for the implementation of a scheme which aims to
address the systemic discrimination against women in
the workplace and therefore
does not limit s 19(1) any more than reasonably necessary,
and
- the
limit is in due proportion to the importance of the objective.
- In
our consideration, we have also noted that a pay equity claim is substantially
different from an equal pay claim. Equal pay claims
involve direct
discrimination from an individual employer. Through actual intent or
unconscious bias, the employer has caused discrimination
against the employee.
Pay equity relates to a systemic social issue. It takes account of historical
discrimination against an occupation,
and therefore is not caused by the
individual employer. The employer in a pay equity dispute has paid the market
wage in good faith,
and is therefore less blameworthy.
5 Atkinson v Minister of Health and
others [2010] NZHRRT 1 at [211]- [212]; McAlister v Air New Zealand
[2009] NZSC 78 at [51] per Tipping J; and Child Poverty Action Group v
Attorney-General [2008] NZHRRT 31 at [137].
6 See for example Child Poverty Action Group v
Attorney-General [2008] NZHRRT 31 at [179]; and McAlister v Air New
Zealand [2009] NZSC 78 at [40] per Elias CJ, Blanchard and Wilson JJ.
- We
therefore conclude that the limitation on the right to be free from
discrimination is reasonably justified.
Language distinguishing
between the sexes
- We
have also considered whether the distinctions based on sex throughout the Bill
constitute a limit on the right to be free from
discrimination. For example, cl
8 of the Bill provides that pay equity claims relate to work that is exclusively
or predominantly
performed by female employees.
- However
we consider the Bill is covered under s 19(2), which provides that measures
taken in good faith for the purpose of assisting
or advancing disadvantaged
persons do not constitute discrimination. The Bill provides a scheme to address
systemic workplace discrimination
on the basis of sex. It is therefore necessary
to make some distinctions based on sex.
Conclusion
- We
have concluded that the Bill appears to be consistent with the rights and
freedoms affirmed in the Bill of Rights Act.
Edrick Child
Acting Chief Legal Counsel Office of Legal Counsel
NZLII:
Copyright Policy
|
Disclaimers
|
Privacy Policy
|
Feedback
URL: http://www.nzlii.org/nz/other/NZBORARp/2017/38.html