Fair Pay Agreements Bill

Hon Michael Wood

Fair Pay Agreements Bill

Government Bill

115—1

Contents

Explanatory note
1Title
2Commencement
3Purpose
4Overview of Act
5Interpretation
6Transitional, savings, and related provisions
7Act binds the Crown
8No contracting out
9Object of this Part
10Voluntary membership of union or employer association
11Only employee bargaining party may represent covered employees’ interests during bargaining
12Only employer bargaining party may represent covered employers’ interests during bargaining
13Prohibition on preference: employees
14Prohibition on preference: employers
15Contracts, agreements, or other arrangements inconsistent with section 13 or 14
16Undue influence
17General obligation of good faith
18Good faith obligations between bargaining parties on same bargaining side
19Good faith obligations between bargaining parties on different bargaining sides
20Penalty for breach of duty of good faith
21Treating employee as independent contractor
22Obligations imposed on bargaining sides
23Personal information
24Chief executive may collect personal information
25Strikes and lockouts
26Overview
27Limit on initiating bargaining
28Criteria for union to initiate bargaining for proposed FPA
29Tests for initiating bargaining
30Application for approval for union to initiate bargaining
31Coverage of proposed FPA
32Chief executive must assess application for approval to initiate bargaining
33Chief executive may invite submissions when considering application
34Chief executive to publicly notify decision
35Formation of employee bargaining side
36Initiating union to notify unions and employers of approval to initiate bargaining
37Employer to notify employees and unions of bargaining being initiated
38Union to notify employers of bargaining being initiated
39Employer to provide employee contact details to employee bargaining side
40Use of employee contact details by initiating union or employee bargaining party
41Storage of employee contact details
42Meaning of employer association
43Employer bargaining party must apply to form or join employer bargaining side
44Chief executive to assess application for approval to form or join employer bargaining side
45Formation of employer bargaining side
46Entitlement and obligation to represent covered employers
47Exceptions for specified employer bargaining party
48Obligation to ensure representation of Māori employers
49Other union may apply for approval to join employee bargaining side
50Application for approval for union to join employee bargaining side
51Chief executive to assess application for approval to join employee bargaining side
52Chief executive to notify decision on application for approval to join employee bargaining side
53Entitlement and obligation to represent covered employees
54Obligation to ensure representation of Māori employees
55Union may provide members’ views to employee bargaining side
56Notification of bargaining parties
57Employee bargaining side
58Employer bargaining side
59Requirements for each bargaining side
60Inter-party side agreement
61When bargaining party subsequently joins bargaining side
62Interpretation
63Specified employer bargaining parties
64Specified State employers
65Options for specified State employer
66Other specified State employers
67Rights, duties, and obligations of specified employer bargaining party
68Specified employer bargaining party to notify chief executive
69Overview: when default bargaining party may be required
70Limit on employer default bargaining party being bargaining party
71Chief executive to notify absence of bargaining party
72Employer default bargaining party deemed to be employer bargaining party
73Employee default bargaining party may elect to join bargaining
74Default bargaining party may initiate bargaining for proposed variation
75Default bargaining party may withdraw from bargaining for proposed variation
76Employer default bargaining party for proposed renewal or proposed replacement
77Employee default bargaining party for proposed renewal or proposed replacement
78Default bargaining parties when bargaining for proposed renewal or proposed replacement initiated by employer bargaining party
79Default bargaining parties when bargaining for proposed renewal or proposed replacement initiated by specified employer bargaining party
80Default bargaining parties when bargaining for proposed renewal or proposed replacement initiated by employee bargaining party
81Requirements for arranging FPA meeting
82Entitlement to attend FPA meetings
83Payment for attending FPA meeting
84Entitlement to attend additional FPA meeting
85Workplace does not include dwellinghouse
86Access to workplaces
87Conditions relating to access
88When access to workplaces may be denied
89When access to workplaces may be denied on religious grounds
90Issue of certificate of exemption
91Duties in relation to accessing workplace
92Providing information when bargaining
93When bargaining party ceases to be bargaining party
94Bargaining party may apply to cease being bargaining party
95Bargaining party ceases to be eligible
96Appointment of new bargaining side lead advocate
97Initiating union ceases to be bargaining party
98Modification to requirement to provide employees’ contact details
99Employee bargaining side must update contact address
100Obligation to submit further information if coverage changed during bargaining
101Provision of information: coverage changes or new employers identified
102Provision of information: new employees within coverage
103Application of sections 104 and 105
104Chief executive must notify initiating party of coverage overlap
105Consequences of coverage overlap
106Application of sections 107 to 111
107When bargaining for fair pay agreements is consolidated
108Chief executive to notify parties
109Effect of decision to consolidate
110Bargaining party may request negotiation of inter-party side agreement
111Effect of decision not to consolidate
112Proposed FPA that adds occupation to fair pay agreement
113Chief executive to notify parties of existing fair pay agreement
114Mandatory content for each fair pay agreement
115Topics that bargaining sides must discuss
116Limit on what fair pay agreement may include
117Minimum entitlement provisions
118How minimum entitlement provisions must be expressed
119How minimum entitlement provisions relate to other legislation
120Minimum wage exemption permits
121Differing minimum wage rates
122Fair pay agreement may include differentiation
123Fair pay agreement may include district variation for some provisions
124Application of fair pay agreement with district variation
125Permitted differentiation in minimum entitlement provision
126Prohibited differentiation
127When delayed commencement can be considered
128Topics to which delayed commencement can relate
129Delayed commencement provision
130Overview
131Meaning of proposed agreement
132Bargaining sides to submit proposed agreement for compliance assessment
133Authority to assess proposed agreement for compliance
134Consequences if Authority does not approve proposed agreement
135Authority to check whether coverage overlap exists
136Time frame for Authority to assess proposed agreement
137Time frame for Authority to determine which agreement provides better terms overall
138How Authority determines which agreement provides better terms overall
139Consequences of Authority’s determination
140Approved proposed agreement to be ratified
141Provision of information prior to ratification
142Time frame for holding ratification vote
143Bargaining sides to notify of ratification vote
144Ratification process
145Notification of outcome of ratification vote
146Obligation to keep records of ratification
147Bargaining sides must submit evidence of ratification for verification
148Chief executive to verify ratification
149Consequences if chief executive declines to verify ratification
150Penalty for providing inaccurate information
151Chief executive to assess whether coverage overlap exists
152Consequences if coverage overlap exists
153Authority to determine which agreement provides better terms overall
154Consequences of Authority’s determination: proposed agreement provides better terms overall
155Consequences of Authority’s determination: fair pay agreement provides better terms overall
156Chief executive may issue fair pay agreement notice
157Form and content of notice
158Notification to bargaining sides
159Chief executive may make editorial changes
160Application of notice and fair pay agreement
161Obligation to comply with fair pay agreement
162Effect of fair pay agreement on employment agreements
163Relationship between fair pay agreements and collective agreements
164Application
165Who may propose agreement to bargain for proposed variation
166Agreement required before bargaining for proposed variation may start
167Notification requirements relating to agreement to bargain for proposed variation
168Ability to join bargaining side during bargaining for proposed variation
169Limitations on requesting variations
170Notice to employers of agreement to bargain for proposed variation
171Obligations to provide information relating to proposed variation
172Employer must provide information to new employee
173Employer bargaining side must provide information to new employer
174Procedure for finalising variation
175Process for ratifying proposed variation
176Further requirements for ratifying proposed variation
177Ratification of proposed variation to agreement attached as schedule
178Chief executive may issue notice to vary fair pay agreement
179Form and content of notice to vary fair pay agreement
180Bargaining sides may seek recommendation from Authority
181Bargaining sides may not seek determination in relation to proposed variation
182Purpose of this subpart
183Approval required to bargain to renew fair pay agreement
184When application to renew fair pay agreement may be made
185Application for approval to bargain for replacement fair pay agreement
186Effect on expiry date of approval to bargain for renewal
187Commencement of renewed or replacement agreement
188Coverage of renewed or replaced fair pay agreement
189Contents of application to renew or replace fair pay agreement
190Test for initiating bargaining to renew or replace fair pay agreement
191Chief executive to assess application for approval to renew or replace fair pay agreement
192Chief executive must notify bargaining parties of approval to bargain for proposed renewal or proposed replacement
193Notification of bargaining for proposed renewal or proposed replacement
194Formation of employer bargaining side for proposed renewal or proposed replacement
195Employee bargaining side for proposed renewal or proposed replacement
196Penalty for non-compliance with obligation when bargaining
197Penalty for non-compliance with obligation when fair pay agreement in force
198Jurisdiction concerning penalties
199Priority when overlapping jurisdiction
200Matters Authority and court must have regard to in determining amount of penalty
201Recovery of penalties
202Chief executive or Labour Inspector may enforce payment of penalty
203Application of penalties recovered
204Mediation services
205Application of provisions in Employment Relations Act 2000
206Other mediation services
207Bargaining support services
208Access to bargaining support services
209Provision of bargaining support services
210Other bargaining support services
211Role of Authority
212Parties may apply to Authority for determination
213Jurisdiction of Authority
214Determination relating to topic that bargaining sides must consider for inclusion
215Recommendations on terms of proposed FPA, proposed renewal, or proposed replacement
216Authority must direct use of mediation before making determination or recommendation
217Limitations on issues relating to coverage
218Authority may fix terms of proposed FPA, proposed renewal, or proposed replacement
219Terms that Authority may fix
220Considerations when Authority recommends or fixes terms
221Limits on Authority fixing terms
222Effect of Authority fixing terms
223Membership of Authority when fixing terms of fair pay agreement
224Powers of Authority under this Act
225Panel member not permitted to hear disputes about same fair pay agreement
226Decision of Authority
227Obligation not to obstruct or delay Authority
228Application of Employment Relations Act 2000
229Meaning of document
230Representation of individuals
231Representation of bargaining parties
232Record when minimum entitlement provision has district variation
233Record when agreement includes penalty rate or overtime rate
234How records must be kept
235Employee or employer may apply for coverage determination
236Labour Inspector may determine coverage under fair pay agreement
237Actions by Labour Inspector
238Effect of coverage determination
239Appeal against coverage determination
240Extended powers of Labour Inspectors
241Extent of Labour Inspectors’ powers
242Power to make regulations
243Chief executive may approve forms
244Consequential amendments

The Parliament of New Zealand enacts as follows: