NCWNZ Action Item Response Sheet
Returning Action Item response sheets:
1.
Email your Response Sheet to ncwnz@ncwnz.org.nz .
2.
Put in the subject line of the email: Action Item Response: Employment Relations
Amendment Bill
3.
Only one Action Item Response Sheet per email please.
Document
Employment Relations Amendment Bill 2013
Standing
Committee/Writer
Employment /Margaret Ledgerton
Action Item due
date
3 July 2013
Website where
document can be
viewed
http://www.pco.parliament.govt.nz/assets/Uploads/pdf/EmploymentRelations-Amendment-Bill.pdf [the Bill]
http://www.dol.govt.nz/er/services/law/legislationreviews/eramendment-bill.asp [related Ministry of Business, Innovation and
Employment (MBIE) papers including Regulatory Impact Statement]
Responder, eg Name
of Branch, NOS,
individual
Number of people
contributing to
response
Outline of the Bill
The Bill proposes significant amendments to the Employment Relations Act 2000 [the Act].
This Action Item focuses on three areas: collective bargaining; continuity of employment for
employees affected by restructuring; and rest and meal breaks. These are addressed in the
order set out in the Bill.
1. Collective bargaining [clauses 4-16]
 Employers will not be required to provide an employee with access to confidential
information about another person. Edited versions or summaries will be allowed. This is
intended to apply to redundancy selection decisions . [clause 4]
 Restrictions on collective bargaining include:
o A union and employer bargaining for a collective agreement will not be required
either to enter into an agreement, or to agree on any matter to be included in an
agreement. [clause 9]
1
o Employers will be able to opt out of collective bargaining for a single collective
agreement involving two or more employers [multi-employer collective
agreements]. [clause 11]
o Employers/employees will be able to apply for a declaration from the
Employment Relations Authority on whether collective bargaining has concluded.
[clause 12]
o Currently, for the first 30 days of employment, the terms and conditions of a new
employee, who is not a union member, will automatically be the same as those
in the collective agreement. This provision in the Act will be removed. The
employer will still be required to give the employee a copy of the collective
agreement that they are eligible to be covered by. [clause 16]
QUESTION:
 Currently, if an employee’s job is at risk, employers must give the employee
information they need to present their case against dismissal – unless there is good
reason not to. The Employment Court has supported that right to information. The
Bill’s amendments will restrict that right. How do you view this change?
 What impact are the proposed restrictions on collective bargaining likely to have on
employees’ terms and conditions of employment?
 Given the stated aims of the Bill, how well do you think the amendments will ensure a
balance of fairness for employers and employees?
2. Continuity of employment: rights of employees to transfer to a new
employer in the event of restructuring. Exempt employers. [Part 6A, clauses 28-41]
 Exempt employers will not be required to:
o employ employees affected by restructuring;
o meet their entitlements; or
o include employment protection provisions in employment agreements.
 An ‘exempt employer’ [or associated person] is defined as: one who employs 19 or
fewer employees – a warranty must be provided to that effect. [clauses 28-30]
 Following a review by the then Department of Labour, other amendments focus on
improving the transfer process including: specifying timeframes for employees electing
to transfer to the new employer; the apportioning of employees’ service-related
entitlements between the former and new employers; providing warranties that the
employer has not changed the working conditions of the employees or their terms and
conditions of employment without good reason; providing transfer costs information
and individualised employee information; [clauses 32-35, 38,39]
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QUESTIONS:
Currently the Act provides certain employees, including those in cleaning, caretaking,
orderly, laundry and food services, with protections if their work is taken over by a new
employer. They have the right to choose to transfer to the new employer on their current
terms and conditions. The Bill proposes to remove those protections if the new employer
employs fewer than 19 employees [exempt employer].
 What impact are the changes likely to have on employees of exempt employers?
 How well do you think the changes will ensure continuity of employment protection
for employees [including key benefits and security] - as well as ensure business
performance and productivity for employers? Is the balance right?
[The MBIE Regulatory Impact Statement, April 2013 (link p.1), notes: ‘…on balance the
Ministry considers that the benefits of having special continuity of employment
protections for the specified workers are likely to outweigh these costs.’]
3. Rest and meal breaks [clauses 43-44]
 An employee will be able to be compensated for an employer’s failure to provide breaks,
- including time off work at an alternative time during the work period. [clause 43]
 An employer will be required to provide an employee with paid rest/meal breaks – that
are appropriate for the duration of the employee’s work period. [clause 44]
 These breaks may be restricted: if the restrictions are reasonable and necessary, having
regard to the nature of the work; or, if not reasonable and necessary, the restrictions are
reasonable and agreed to by the employer and the employee [which may be in an
employment agreement or otherwise]. [clause 44]
 Where an employer/employee cannot agree, the employer may decide what are
reasonable times and durations for breaks - having regard to: the employer’s
operational environment or resources; the employee’s interests; and the employer’s
ability to maintain continuity of service or production.
QUESTIONS:
 What protections do the amendments provide for employees wishing to retain regular
meal breaks – and how adequate are they likely to be?
 What do you think the potential impacts of the proposed changes will be - particularly
for those in precarious employment?
Other comment:
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