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This legislation has been repealed.

FAIR PAY AGREEMENTS ACT 2022

- As at 20 December 2023
- Act 58 of 2022

TABLE OF PROVISIONS

   1.      Title
   2.      Commencement

   PART 1 - Preliminary provisions

   3.      Purpose
   4.      Overview of Act
   5.      Interpretation
   6.      Transitional, savings, and related provisions
   7.      Act binds the Crown
   8.      No contracting out

   PART 2 - General principles and obligations

   9.      Object of this Part

           SUBPART 1 - Freedom of association

   10.     Voluntary membership of union or employer association
   11.     Only employee bargaining party may represent covered employees’ interests
   12.     Only employer bargaining party may represent covered employers’ interests
   13.     Prohibition on preference: employees
   14.     Prohibition on preference: employers
   15.     Fair pay agreements, contracts, agreements, or other arrangements inconsistent with section 13 or 14
   16.     Undue influence

           SUBPART 2 - Duty of good faith

   17.     Duty of good faith
   18.     Good faith obligations between bargaining parties on same bargaining side
   19.     Good faith obligations between bargaining parties on different bargaining sides
   20.     Further application of duty of good faith
   21.     Penalty for breach of duty of good faith

           SUBPART 3 - General obligations

   22.     Engaging employee under contract for services
   23.     Obligations imposed on bargaining sides
   24.     Strikes and lockouts

   PART 3 - Preliminary requirements: initiating bargaining and forming bargaining sides

   25.     Overview

           SUBPART 1 - Process for initiating bargaining and forming bargaining sides

   26.     Limit on initiating bargaining
   27.     Criteria for union to initiate bargaining for proposed FPA
   28.     Test for initiating bargaining: representation test
   29.     Test for initiating bargaining: public interest test
   30.     Application for approval for union to initiate bargaining
   31.     Evidence provided in support of application
   32.     Coverage of proposed FPA
   33.     Chief executive must assess application for approval to initiate bargaining
   34.     Time frame for chief executive
   35.     Chief executive may require applicant to provide further information
   36.     Chief executive may invite submissions when considering application
   37.     Chief executive to publicly notify decision
   38.     Formation of employee bargaining side
   39.     Initiating union to notify unions and employers of approval to initiate bargaining
   40.     Employer to notify employees and unions of bargaining being initiated
   41.     Union to notify employers of bargaining being initiated
   42.     Employer to provide employee contact details to employee bargaining side
   43.     Employer association may apply to be employer bargaining party
   44.     Chief executive to assess application for approval to be employer bargaining party
   45.     Chief executive must notify decision to approve employer bargaining party
   46.     Formation of employer bargaining side for proposed FPA
   47.     Other union may apply for approval to be additional employee bargaining party on employee bargaining side
   48.     Application for approval for union to be additional employee bargaining party
   49.     Chief executive to assess application for approval to be additional employee bargaining party
   50.     Chief executive to notify decision on application for approval to be additional employee bargaining party

           SUBPART 2 - General provisions for initiating bargaining

   51.     Notification of bargaining parties
   52.     Employee bargaining side
   53.     Employer bargaining side
   54.     Requirements for each bargaining side
   55.     Inter-party side agreement
   56.     When bargaining party subsequently joins bargaining side

   PART 4 - Specified employer bargaining parties and default bargaining parties
   SUBPART Subpart 1 - Specified employer bargaining parties

   57.     Interpretation
   58.     Public Service Commissioner
   59.     Specified State employers
   60.     Options for specified State employer
   61.     Other specified State employers
   62.     Specified employer bargaining parties
   63.     Specified employer bargaining party to notify chief executive
   64.     Chief executive must publicly notify if specified employer bargaining party is employer bargaining party

           SUBPART 2 - Default bargaining parties

   65.     Overview: when default bargaining party may elect to be bargaining party
   66.     Limit on employer default bargaining party electing to be bargaining party
   67.     Chief executive’s notification: bargaining side not formed
   68.     Chief executive’s notification: all bargaining parties on bargaining side cease to be bargaining parties
   69.     Default bargaining party elects to be bargaining party
   70.     Employer default bargaining party for proposed agreement
   71.     Employee default bargaining party for proposed renewal or proposed replacement
   72.     Default bargaining parties when bargaining for proposed agreement initiated by employee bargaining party
   73.     Default bargaining parties when bargaining for proposed renewal or proposed replacement initiated by employer bargaining party
   74.     Default bargaining parties when bargaining for proposed renewal or proposed replacement initiated by specified employer bargaining party
   75.     Default bargaining party ceases to be bargaining party
   76.     Default bargaining party may initiate bargaining for proposed variation
   77.     Default bargaining party may withdraw from bargaining for proposed variation

           SUBPART 3 - Consequences of default bargaining party not electing to be bargaining party

   78.     Default bargaining party does not elect to be bargaining party
   79.     Default bargaining party does not elect to be bargaining party when bargaining initiated by specified employer bargaining party
   80.     Bargaining discontinued if bargaining party does not apply for determination
   81.     Chief executive to publicly notify that bargaining has been discontinued
   82.     Subsequent period when bargaining side may be formed

   PART 5 - FPA meetings and union access to workplaces

           SUBPART 1 - FPA meetings

   83.     Requirements for arranging FPA meeting
   84.     Entitlement to attend FPA meetings
   85.     Payment for attending FPA meeting
   86.     Entitlement to attend additional FPA meeting

           SUBPART 2 - Employee bargaining party may access workplaces

   87.     Workplace does not include dwellinghouse
   88.     Access to workplaces
   89.     Conditions relating to access
   90.     When access to workplaces may be denied
   91.     When access to workplaces may be denied on religious grounds
   92.     Duties in relation to accessing workplace

   PART 6 - Bargaining

           SUBPART 1 - Good faith obligation to provide information

   93.     Providing information when bargaining
   94.     Bargaining side must provide requested information to requester or independent reviewer
   95.     Limits on use of information provided during bargaining

           SUBPART 2 - Representation

   96.     Entitlement and obligation to represent covered employees
   97.     Obligation to ensure representation of Māori employees
   98.     Union may provide members’ views to employee bargaining side
   99.     Entitlement and obligation to represent covered employers
   100.    Obligation to ensure representation of Māori employers

           SUBPART 3 - Ceasing to be bargaining party

   101.    When bargaining party ceases to be bargaining party
   102.    Bargaining party may apply to cease being bargaining party
   103.    Bargaining party ceases to be eligible
   104.    Appointment of new bargaining side lead advocate

           SUBPART 4 - Provision of information

   105.    Modification to requirement to provide employeescontact details
   106.    Employee bargaining side must update contact address
   107.    Provision of information: coverage changes or new employers identified
   108.    Provision of information: new employees within coverage

           SUBPART 5 - Coverage change, coverage overlap, consolidation, and addition of occupation

   109.    Bargaining party must apply for approval to bargain with changed coverage
   110.    Chief executive must assess application made under section 109
   111.    Chief executive to publicly notify changed coverage
   112.    Application of sections 113 and 114
   113.    Chief executive must notify initiating party of coverage overlap
   114.    Consequences of coverage overlap
   115.    Application of sections 116 to 120
   116.    When bargaining for fair pay agreements is consolidated
   117.    Chief executive to notify parties
   118.    Effect of decision to consolidate
   119.    Bargaining party may request negotiation of inter-party side agreement
   120.    Effect of decision not to consolidate
   121.    Proposed FPA that adds occupation to fair pay agreement
   122.    Chief executive to notify parties of existing fair pay agreement

   PART 7 - Content of fair pay agreements

   123.    Mandatory content for each fair pay agreement
   124.    Mandatory content: details of wages
   125.    Topics that bargaining sides must discuss
   126.    Limit on what fair pay agreement may include
   127.    Minimum entitlement provisions
   128.    How minimum entitlement provisions must be expressed
   129.    How minimum entitlement provisions relate to other legislation
   130.    Minimum wage exemption permits
   131.    Differing minimum base wage rates
   132.    Differing minimum base wage rates: starting-out rate
   133.    Differing minimum base wage rates: training rate
   134.    Fair pay agreement may include differentiation
   135.    Fair pay agreement may include district variation for some provisions
   136.    Application of fair pay agreement with district variation
   137.    Permitted differentiation in minimum entitlement provision
   138.    Prohibited differentiation
   139.    When delayed commencement can be considered
   140.    Topics to which delayed commencement can relate
   141.    Delayed commencement provision

   PART 8 - Finalisation of proposed agreement

   142.    Overview

           SUBPART 1 - Compliance assessment

   143.    Bargaining sides to submit proposed agreement for compliance assessment
   144.    Authority to assess proposed agreement for compliance
   145.    Consequences if Authority does not approve proposed agreement
   146.    Authority to assess whether coverage overlap exists
   147.    Time frame for Authority to assess proposed agreement
   148.    Time frame for Authority to determine which agreement provides better terms overall
   149.    How Authority determines which agreement provides better terms overall
   150.    Consequences of Authority’s determination

           SUBPART 2 - Ratification

   151.    Approved proposed agreement to be ratified
   152.    Provision of information prior to ratification
   153.    Time frame for holding ratification vote
   154.    Bargaining sides to notify of ratification vote
   155.    Entitlement to vote in ratification vote
   156.    Ratification process
   157.    Notification of outcome of ratification vote
   158.    Obligation to keep records of ratification

           SUBPART 3 - Verification

   159.    Bargaining sides must submit evidence of ratification for verification
   160.    Chief executive to verify ratification
   161.    Consequences if chief executive declines to verify ratification
   162.    Penalty for providing inaccurate information

           SUBPART 4 - Chief executive to check for overlapping coverage

   163.    Chief executive to check whether coverage overlap exists
   164.    Consequences if coverage overlap may exist
   165.    Authority to make determinations relating to coverage overlap
   166.    Consequences of Authority’s determination: proposed agreement provides better terms overall
   167.    Consequences of Authority’s determination: fair pay agreement provides better terms overall

           SUBPART 5 - Issuing fair pay agreement notice

   168.    Chief executive to issue fair pay agreement notice
   169.    Form and content of notice
   170.    Notification to bargaining sides
   171.    Chief executive may make editorial changes
   172.    Application of notice and fair pay agreement
   173.    Threshold to be covered employee for fair pay agreement
   174.    Obligation to comply with fair pay agreement
   175.    Effect of fair pay agreement on employment agreements
   176.    Relationship between fair pay agreements and collective agreements

   PART 9 - Variation, renewal, and replacement of fair pay agreements

           SUBPART 1 - Variation

   177.    Application
   178.    Who may propose agreement to bargain for proposed variation
   179.    Agreement required before bargaining for proposed variation may start
   180.    Notification requirements relating to agreement to bargain for proposed variation
   181.    Ability to join bargaining side during bargaining for proposed variation
   182.    Limitations on requesting variations
   183.    Notice to employers of agreement to bargain for proposed variation
   184.    Employee bargaining side must update contact address
   185.    Obligations to provide information relating to proposed variation
   186.    Employer must provide information to new employee
   187.    Employer bargaining side must provide information to new employer
   188.    Procedure for finalising variation
   189.    Process for ratifying proposed variation
   190.    Further requirements for ratifying proposed variation
   191.    Ratification of proposed variation to agreement attached as schedule
   192.    Chief executive to issue notice to vary fair pay agreement
   193.    Form and content of notice to vary fair pay agreement
   194.    Bargaining sides may seek recommendation from Authority
   195.    Bargaining sides may not seek determination in relation to proposed variation

           SUBPART 2 - Renewal and replacement of fair pay agreements

   196.    Purpose of this subpart
   197.    Approval required to bargain to renew or replace fair pay agreement
   198.    When application to renew fair pay agreement may be made
   199.    Application for approval to bargain for replacement fair pay agreement
   200.    Effect on expiry date of approval to bargain for renewal
   201.    Commencement of renewed or replacement agreement
   202.    Coverage of renewed or replaced fair pay agreement
   203.    Contents of application to renew or replace fair pay agreement
   204.    Evidence provided in support of application from eligible employer association or specified employer bargaining party
   205.    Test for initiating bargaining to renew or replace fair pay agreement
   206.    Chief executive to assess application for approval to renew or replace fair pay agreement
   207.    Chief executive must notify bargaining parties of approval to bargain for proposed renewal or proposed replacement
   208.    Notification of bargaining for proposed renewal or proposed replacement
   209.    Formation of employer bargaining side for proposed renewal or proposed replacement
   210.    Formation of employee bargaining side for proposed renewal or proposed replacement

   PART 10 - Penalties and enforcement

   211.    Penalty for non-compliance with obligation when bargaining
   212.    Penalty for non-compliance with obligation when fair pay agreement in force
   213.    Jurisdiction concerning penalties
   214.    Priority when overlapping jurisdiction
   215.    Matters Authority and court must have regard to in determining amount of penalty
   216.    Recovery of penalties
   217.    Chief executive or Labour Inspector may enforce payment of penalty
   218.    Application of penalties recovered

   PART 11 - Institutions

           SUBPART 1 - Mediation services

   219.    Mediation services
   220.    Application of provisions in Employment Relations Act 2000
   221.    Other mediation services

           SUBPART 2 - Bargaining support services

   222.    Bargaining support services
   223.    Access to bargaining support services
   224.    Provision of bargaining support services
   225.    Application of provisions in Employment Relations Act 2000
   226.    Other bargaining support services

           SUBPART 3 - Employment Relations Authority

   227.    Role of Authority
   228.    Jurisdiction of Authority
   229.    Parties may apply to Authority for determination
   230.    Determination relating to topic that bargaining sides must consider for inclusion
   231.    Recommendations on terms of proposed agreement
   232.    Authority must direct use of mediation before making determination or recommendation
   233.    Limitations on issues relating to coverage
   234.    Authority may fix terms of proposed agreement
   235.    Terms that Authority may fix
   236.    Considerations when Authority recommends or fixes terms
   237.    Limits on Authority fixing terms
   238.    Effect of Authority fixing terms
   239.    Membership of Authority when fixing terms of fair pay agreement
   240.    Panel member not permitted to hear disputes about same fair pay agreement
   241.    Decision of Authority
   242.    Obligation not to obstruct or delay Authority
   243.    Application of Employment Relations Act 2000

   PART 12 - Determinations in absence of bargaining side

   244.    Bargaining party may apply to Authority for determination
   245.    Application for determination
   246.    Joint applicants and other parties to application for determination
   247.    Notification requirements: employee bargaining side
   248.    Notification requirements: employer bargaining side
   249.    Notification requirements: employers
   250.    Restriction on applying for determination: subsequent formation of bargaining side
   251.    Restriction on applying for determination: bargaining initiated for another proposed agreement
   252.    Authority must make determination
   253.    Terms that Authority must fix when making determination
   254.    Terms that Authority may fix when making determination
   255.    Terms that Authority must not fix when making determination
   256.    Provisions that apply to determination under this Part
   257.    Consolidation when Authority making 2 determinations
   258.    Effect of decision whether to consolidate
   259.    Provisions that apply during determination process
   260.    Requirement to provide information
   261.    Personal information
   262.    Requirements for arranging FPA meetings
   263.    Entitlement to attend FPA meetings
   264.    Payment for attending FPA meeting
   265.    Access to workplaces

   PART 13 - Miscellaneous provisions

   266.    Meaning of document
   267.    Representation of individuals
   268.    Representation of bargaining parties
   269.    Record when minimum entitlement provision has district variation
   270.    Record when agreement includes penalty rate or overtime rate
   271.    How records must be kept
   272.    Use of employee contact details by initiating union or employee bargaining party
   273.    Storage of employee contact details
   274.    Personal information
   275.    Chief executive may collect personal information
   276.    Employee or employer may apply for coverage determination
   277.    Labour Inspector may determine whether employee is covered employee under fair pay agreement
   278.    Actions by Labour Inspector
   279.    Effect of coverage determination
   280.    Appeal against coverage determination
   281.    Extended powers of Labour Inspectors
   282.    Extent of Labour Inspectors’ powers
   283.    Power to make regulations
   284.    Chief executive may approve forms
   285.    Consequential amendments
           SCHEDULE 1
           SCHEDULE 2
           SCHEDULE 3
           SCHEDULE 4


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