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Fair Pay Agreements Bill
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Hon Michael Wood
Fair Pay Agreements Bill
Government Bill
115—1
Contents
Explanatory note
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
Voluntary membership
10
Voluntary membership of union or employer association
11
Only employee bargaining party may represent covered employees’ interests during bargaining
12
Only employer bargaining party may represent covered employers’ interests during bargaining
Prohibition on preference
13
Prohibition on preference: employees
14
Prohibition on preference: employers
15
Contracts, agreements, or other arrangements inconsistent with
section 13 or 14
Undue influence
16
Undue influence
Subpart 2—Good faith obligations
17
General obligation 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
Penalty for breach of duty of good faith
21
Treating employee as independent contractor
Subpart 3—General obligations
22
Obligations imposed on bargaining sides
23
Personal information
24
Chief executive may collect personal information
25
Strikes and lockouts
Part 3
Initiating bargaining for proposed FPA
26
Overview
Subpart 1—Process for initiating bargaining and forming bargaining sides
27
Limit on initiating bargaining
Union to apply for approval to initiate bargaining for proposed FPA
28
Criteria for union to initiate bargaining for proposed FPA
29
Tests for initiating bargaining
30
Application for approval for union to initiate bargaining
31
Coverage of proposed FPA
Chief executive assesses application for approval to initiate bargaining
32
Chief executive must assess application for approval to initiate bargaining
33
Chief executive may invite submissions when considering application
34
Chief executive to publicly notify decision
Formation of employee bargaining side
35
Formation of employee bargaining side
Initiating union must notify approval to initiate bargaining
36
Initiating union to notify unions and employers of approval to initiate bargaining
37
Employer to notify employees and unions of bargaining being initiated
38
Union to notify employers of bargaining being initiated
Employee contact details
39
Employer to provide employee contact details to employee bargaining side
40
Use of employee contact details by initiating union or employee bargaining party
41
Storage of employee contact details
Employer bargaining side
42
Meaning of employer association
43
Employer bargaining party must apply to form or join employer bargaining side
44
Chief executive to assess application for approval to form or join employer bargaining side
45
Formation of employer bargaining side
46
Entitlement and obligation to represent covered employers
47
Exceptions for specified employer bargaining party
48
Obligation to ensure representation of Māori employers
Other union may apply to join employee bargaining side
49
Other union may apply for approval to join employee bargaining side
50
Application for approval for union to join employee bargaining side
51
Chief executive to assess application for approval to join employee bargaining side
52
Chief executive to notify decision on application for approval to join employee bargaining side
53
Entitlement and obligation to represent covered employees
54
Obligation to ensure representation of Māori employees
55
Union may provide members’ views to employee bargaining side
Subpart 2—General provisions for initiating bargaining
Notification of bargaining parties
56
Notification of bargaining parties
Bargaining sides
57
Employee bargaining side
58
Employer bargaining side
59
Requirements for each bargaining side
60
Inter-party side agreement
61
When bargaining party subsequently joins bargaining side
Specified employer bargaining parties
62
Interpretation
63
Specified employer bargaining parties
64
Specified State employers
65
Options for specified State employer
66
Other specified State employers
67
Rights, duties, and obligations of specified employer bargaining party
68
Specified employer bargaining party to notify chief executive
Subpart 3—Default bargaining parties
69
Overview: when default bargaining party may be required
70
Limit on employer default bargaining party being bargaining party
71
Chief executive to notify absence of bargaining party
Default bargaining parties for proposed FPAs
72
Employer default bargaining party deemed to be employer bargaining party
73
Employee default bargaining party may elect to join bargaining
Default bargaining parties for proposed variations
74
Default bargaining party may initiate bargaining for proposed variation
75
Default bargaining party may withdraw from bargaining for proposed variation
Default bargaining parties for proposed renewals or proposed replacements
76
Employer default bargaining party for proposed renewal or proposed replacement
77
Employee default bargaining party for proposed renewal or proposed replacement
78
Default bargaining parties when bargaining for proposed renewal or proposed replacement initiated by employer bargaining party
79
Default bargaining parties when bargaining for proposed renewal or proposed replacement initiated by specified employer bargaining party
80
Default bargaining parties when bargaining for proposed renewal or proposed replacement initiated by employee bargaining party
Part 4
FPA meetings and union access to workplaces
Subpart 1—FPA meetings
81
Requirements for arranging FPA meeting
82
Entitlement to attend FPA meetings
83
Payment for attending FPA meeting
84
Entitlement to attend additional FPA meeting
Subpart 2—Employee bargaining party may access workplaces
85
Workplace does not include dwellinghouse
86
Access to workplaces
87
Conditions relating to access
88
When access to workplaces may be denied
89
When access to workplaces may be denied on religious grounds
90
Issue of certificate of exemption
91
Duties in relation to accessing workplace
Part 5
Bargaining
Subpart 1—Good faith obligation to provide information
92
Providing information when bargaining
Subpart 2—Obligations during bargaining
Ceasing to be bargaining party
93
When bargaining party ceases to be bargaining party
94
Bargaining party may apply to cease being bargaining party
95
Bargaining party ceases to be eligible
96
Appointment of new bargaining side lead advocate
97
Initiating union ceases to be bargaining party
Provision of information
98
Modification to requirement to provide employees’ contact details
99
Employee bargaining side must update contact address
100
Obligation to submit further information if coverage changed during bargaining
101
Provision of information: coverage changes or new employers identified
102
Provision of information: new employees within coverage
Subpart 3—Coverage overlap, consolidation, and addition of occupation
Coverage overlap between proposed FPA and fair pay agreement
103
Application of
sections 104 and 105
104
Chief executive must notify initiating party of coverage overlap
105
Consequences of coverage overlap
Consolidation of bargaining for fair pay agreements
106
Application of
sections 107 to 111
107
When bargaining for fair pay agreements is consolidated
108
Chief executive to notify parties
109
Effect of decision to consolidate
110
Bargaining party may request negotiation of inter-party side agreement
111
Effect of decision not to consolidate
Addition of occupation to fair pay agreement
112
Proposed FPA that adds occupation to fair pay agreement
113
Chief executive to notify parties of existing fair pay agreement
Part 6
Content of fair pay agreements
Content of fair pay agreements
114
Mandatory content for each fair pay agreement
115
Topics that bargaining sides must discuss
116
Limit on what fair pay agreement may include
Minimum entitlement provisions
117
Minimum entitlement provisions
118
How minimum entitlement provisions must be expressed
119
How minimum entitlement provisions relate to other legislation
Minimum wage rates
120
Minimum wage exemption permits
121
Differing minimum wage rates
Differentiation of application and entitlement
122
Fair pay agreement may include differentiation
123
Fair pay agreement may include district variation for some provisions
124
Application of fair pay agreement with district variation
125
Permitted differentiation in minimum entitlement provision
126
Prohibited differentiation
Delayed commencement of term in fair pay agreement
127
When delayed commencement can be considered
128
Topics to which delayed commencement can relate
129
Delayed commencement provision
Part 7
Finalisation of proposed agreement
130
Overview
131
Meaning of proposed agreement
Subpart 1—Compliance assessment
132
Bargaining sides to submit proposed agreement for compliance assessment
133
Authority to assess proposed agreement for compliance
134
Consequences if Authority does not approve proposed agreement
135
Authority to check whether coverage overlap exists
136
Time frame for Authority to assess proposed agreement
137
Time frame for Authority to determine which agreement provides better terms overall
138
How Authority determines which agreement provides better terms overall
139
Consequences of Authority’s determination
Subpart 2—Ratification
140
Approved proposed agreement to be ratified
141
Provision of information prior to ratification
142
Time frame for holding ratification vote
143
Bargaining sides to notify of ratification vote
144
Ratification process
145
Notification of outcome of ratification vote
146
Obligation to keep records of ratification
Subpart 3—Verification
147
Bargaining sides must submit evidence of ratification for verification
148
Chief executive to verify ratification
149
Consequences if chief executive declines to verify ratification
150
Penalty for providing inaccurate information
Subpart 4—Chief executive’s assessment of overlapping coverage
151
Chief executive to assess whether coverage overlap exists
152
Consequences if coverage overlap exists
153
Authority to determine which agreement provides better terms overall
154
Consequences of Authority’s determination: proposed agreement provides better terms overall
155
Consequences of Authority’s determination: fair pay agreement provides better terms overall
Subpart 5—Issuing fair pay agreement notice
Chief executive to issue fair pay agreement notice
156
Chief executive may issue fair pay agreement notice
157
Form and content of notice
158
Notification to bargaining sides
159
Chief executive may make editorial changes
Application and effect of fair pay agreement
160
Application of notice and fair pay agreement
161
Obligation to comply with fair pay agreement
162
Effect of fair pay agreement on employment agreements
163
Relationship between fair pay agreements and collective agreements
Part 8
Variation, renewal, and replacement of fair pay agreements
Subpart 1—Variation
164
Application
165
Who may propose agreement to bargain for proposed variation
166
Agreement required before bargaining for proposed variation may start
167
Notification requirements relating to agreement to bargain for proposed variation
168
Ability to join bargaining side during bargaining for proposed variation
169
Limitations on requesting variations
170
Notice to employers of agreement to bargain for proposed variation
171
Obligations to provide information relating to proposed variation
172
Employer must provide information to new employee
173
Employer bargaining side must provide information to new employer
174
Procedure for finalising variation
175
Process for ratifying proposed variation
176
Further requirements for ratifying proposed variation
177
Ratification of proposed variation to agreement attached as schedule
178
Chief executive may issue notice to vary fair pay agreement
179
Form and content of notice to vary fair pay agreement
180
Bargaining sides may seek recommendation from Authority
181
Bargaining sides may not seek determination in relation to proposed variation
Subpart 2—Renewal and replacement of fair pay agreements
182
Purpose of this subpart
183
Approval required to bargain to renew fair pay agreement
Timing
184
When application to renew fair pay agreement may be made
185
Application for approval to bargain for replacement fair pay agreement
186
Effect on expiry date of approval to bargain for renewal
187
Commencement of renewed or replacement agreement
Coverage
188
Coverage of renewed or replaced fair pay agreement
Application for approval to renew or replace fair pay agreement
189
Contents of application to renew or replace fair pay agreement
190
Test for initiating bargaining to renew or replace fair pay agreement
191
Chief executive to assess application for approval to renew or replace fair pay agreement
Notification requirements
192
Chief executive must notify bargaining parties of approval to bargain for proposed renewal or proposed replacement
193
Notification of bargaining for proposed renewal or proposed replacement
194
Formation of employer bargaining side for proposed renewal or proposed replacement
195
Employee bargaining side for proposed renewal or proposed replacement
Part 9
Penalties and enforcement
Penalties
196
Penalty for non-compliance with obligation when bargaining
197
Penalty for non-compliance with obligation when fair pay agreement in force
198
Jurisdiction concerning penalties
199
Priority when overlapping jurisdiction
200
Matters Authority and court must have regard to in determining amount of penalty
201
Recovery of penalties
202
Chief executive or Labour Inspector may enforce payment of penalty
203
Application of penalties recovered
Part 10
Institutions
Subpart 1—Mediation services
204
Mediation services
205
Application of provisions in Employment Relations Act 2000
206
Other mediation services
Subpart 2—Bargaining support services
207
Bargaining support services
208
Access to bargaining support services
209
Provision of bargaining support services
210
Other bargaining support services
Subpart 3—Employment Relations Authority
211
Role of Authority
Determinations and recommendations
212
Parties may apply to Authority for determination
213
Jurisdiction of Authority
214
Determination relating to topic that bargaining sides must consider for inclusion
215
Recommendations on terms of proposed FPA, proposed renewal, or proposed replacement
216
Authority must direct use of mediation before making determination or recommendation
217
Limitations on issues relating to coverage
Fixing terms of fair pay agreements
218
Authority may fix terms of proposed FPA, proposed renewal, or proposed replacement
219
Terms that Authority may fix
220
Considerations when Authority recommends or fixes terms
221
Limits on Authority fixing terms
222
Effect of Authority fixing terms
223
Membership of Authority when fixing terms of fair pay agreement
General provisions relating to Employment Relations Authority
224
Powers of Authority under this Act
225
Panel member not permitted to hear disputes about same fair pay agreement
226
Decision of Authority
227
Obligation not to obstruct or delay Authority
Provisions that apply when application made to Authority
228
Application of Employment Relations Act 2000
Part 11
Miscellaneous provisions
229
Meaning of document
Representation
230
Representation of individuals
231
Representation of bargaining parties
Record-keeping requirements
232
Record when minimum entitlement provision has district variation
233
Record when agreement includes penalty rate or overtime rate
234
How records must be kept
Labour Inspector may make determination of coverage by fair pay agreement
235
Employee or employer may apply for coverage determination
236
Labour Inspector may determine coverage under fair pay agreement
237
Actions by Labour Inspector
238
Effect of coverage determination
239
Appeal against coverage determination
240
Extended powers of Labour Inspectors
241
Extent of Labour Inspectors’ powers
Regulations
242
Power to make regulations
Forms
243
Chief executive may approve forms
244
Consequential amendments
Schedule 1
Transitional, savings, and related provisions
Schedule 2
Ratification process: number of votes for covered employers
Schedule 3
Application of provisions of Employment Relations Act 2000 relating to Employment Relations Authority
Schedule 4
Consequential amendments
The Parliament of New Zealand enacts as follows: