56 Application of collective agreement

(1)

A collective agreement that is in force binds and is enforceable by—

(a)

the union and the employer that are the parties to the agreement; and

(b)

employees—

(i)

who are employed by an employer that is a party to the agreement; and

(ii)

who are or become members of a union that is a party to the agreement; and

(iii)

whose work comes within the coverage clause in the agreement.

(1A)

However, an employee who is bound by a collective agreement and who holds a minimum wage exemption permit under section 8 of the Minimum Wage Act 1983 may be paid wages at the rate specified in the permit,—

(a)

while the permit is in force; and

(b)

if the union that is a party to the collective agreement agrees.

(2)

If the registration of a union that is a party to a collective agreement is cancelled or the union ceases to be an incorporated society, the collective agreement continues to bind the employer or employers who are parties to the agreement, and the members of the union who were bound by the collective agreement immediately before the cancellation of the union’s registration or the cessation of the union as an incorporated society.

(3)

If the union’s registration is cancelled as a result of the union’s amalgamation with 1 or more other unions, the collective agreement binds the amalgamated union.

Section 56(1A): inserted, on 1 December 2004, by section 16 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).

Section 56(1A): amended, on 28 March 2007, by section 5(1) of the Minimum Wage Amendment Act 2007 (2007 No 12).