Andrew Shaw of Lane Neave Ronaldson outlines employers' obligations under the Employment Relations Act 2000


Employers taking on new staff since the Employment Relations Act 2000 came into force on 2 October need to revamp their hiring procedures, depending on their workforce, and the status of the new employee.

New employees who don't belong to a union

An employer who is a party to a collective agreement (and not just a collective employment contract) that covers the work of a new non-union-member employee has several obligations. They do not apply where the employee resigns from a union or enters into a new individual employment agreement with the same employer.

When an employee enters into an individual employment agreement, the employer must tell the employee:

- that the collective agreement exists and covers the work of the employee;

- that the employee may join the union that is a party to the collective agreement;

- how the employee can contact the union;

- that if the employee joins a union, they are bound by the collective agreement; and

- that for the first 30 days of employment, the terms and conditions of the employee's employment are the same as the collective agreement, and any additional terms agreed to that are not inconsistent with the collective agreement.

The employer must give the employee a copy of the new collective agreement. When an employee decides to enter into an individual employment agreement after the first 30 days, the employer must tell the union, with the employee's consent. If more than one collective agreement covers the work of an employee, there are other obligations.

The employer must not agree with the employee any provisions that automatically alter the terms and conditions of employment after the 30 days has expired. However, after 30 days has expired, the employer and the employee can mutually agree to new terms and conditions and enter into an individual employment agreement.

New employees in a workplace without a collective agreement

The employer must comply with the following conditions before entering into an individual employment agreement with a new employee:

- The employer must give the employee a copy of the intended individual employment agreement;

- The employer must advise the employee to seek independent advice (for example, a lawyer, a union, a family friend, someone they trust, a local Community Law Centre); and

- The employer must give the employee a reasonable opportunity to seek independent advice.

Meeting the obligations

If the employer fails to comply with any obligation, they are liable to fines of up to $5,000 (for a sole trader or partnership) or $10,000 (for a company). We suggest employers draft standard letters for new employees depending on whether a collective agreement is in force or where no collective agreement is in force. The letters will help employers meet their obligations and hopefully prevent prosecution.

This is a general summary only and should not be taken as a substitute for specific advice.
Andrew Shaw is a partner and member of the employment relations team of Lane Neave Ronaldson.

Web site: Lane Neave Ronaldson

Email: andrew.shaw@laneneave.co.nz

March 2001