Three60 Consult Logo

Employment Agreements Hires

Posted on: Feb 12, 2015

With the recent amendments to the Employment Relations Act 2000 removing the “30-day rule” from 6 March 2015, there may be some confusion as to what employment agreement employers should be offering new employees.

The answers to the questions below should help determine whether a new employee should be covered by an individual agreement or a collective agreement.

Q1 Is the employer bound by one or more collective agreements?

YESDo any of these agreements cover the new employee or the work to be done by the new employee?

  • YES, then there is an applicable collective agreement. Go to Question 2.
  • NO, the new employee will be engaged under an individual employment agreement.

NO – The new employee will be engaged under an individual employment agreement.

Q2  Is the new employee a member of a union?

YESIs the employee’s union a party to a collective agreement which both binds the employer and covers the new employee or the work to be done by that person?

  • YES, then there is an applicable collective agreement and the new employee will be engaged under the provisions of that agreement. However, the employer and the employee may agree on “additional” terms and conditions.

Note:

  • Additional terms and conditions must be “not inconsistent with” the provisions of the collective agreement.
  • The phrase “not inconsistent with” does not simply mean “not less favourable than”.
  • If a matter is dealt with in a collective agreement, no inconsistent term may be negotiated and agreed with an individual employee who is covered by the collective agreement.
  • It doesn’t matter whether the term is more or less favourable. “Additional” terms and conditions can only be negotiated if they are matters not already covered by the collective agreement.
  • NO, ie the employee’s union is not a party to an applicable collective agreement, then the new employee will be engaged under an individual employment agreement.

NO –  ie the employee is not a member of a union, then the new employee will be engaged under an individual employment agreement.  However, the employer must still:

  • Inform the new employee that there is a collective agreement which covers the work to be done by the new employee.
  • Tell the new employee that he or she may join the union that is a party to the collective agreement, and how to contact the union.
  • Tell the new employee that he or she will become bound by the collective agreement on joining the union.
  • Give the new employee a copy of the collective agreement.
  • If the employee agrees, inform the union as soon as practicable that the employee has entered into an individual employment agreement with the employer.

We hope the above Q&A helps you to determine which employment agreement you need to offer to your new employees, and what additional information you are required to provide (if any).  Feel free to contact any of our team for further information.

Disclaimer

This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.

Disclaimer

This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.

Subscribe to Newsletter

Christmas is coming…

Christmas is coming…

Once Labour Day has been [yes, believe it or not it’s this coming Monday], the next public holidays are at Christmas and New Year. It always feels like employers have to put a bit more thought into Christmas and New Year because: there are four public holidays; this is a time that many businesses have their annual closedown period; many employees take their annual leave; some employees don’t have enough leave to cover this period; some employment agreements have special rates for these public holidays; and, let’s face it, it is a busy busy busy time. In the next few weeks, my colleague, Tasneem Begum, and I will be offering a free webinar for those employers who want a bit more information around those tricky calculations for leave at this time of the year. We will also be able to answer the questions you have and the challenges you face with leave during the Christmas/New Year period. You are not alone with the questions you have – Questions we are often asked at this time of the year are about employing staff to cover the busy Christmas period

Read More
What the heck is going on with pay?

What the heck is going on with pay?

While we are conscious of the impact that inflation is having on wage and salary conversations, there are four other levers that have been, and are being, used to bring about fundamental change and significant uplift to pay in New Zealand. The Government is using these levers to drive increases in pay at various levels in ways that we may not be conscious of. However, when brought together as a single thread, they are having a big impact.

Read More
To Mediate or not to Mediate

To Mediate or not to Mediate

To mediate or not to mediate – that is the question… While William Shakespeare put into verse Hamlet’s soliloquy in endless agonising verse about dire choices with absolutely no chance of a happy ending – it is not so with mediation. Change the name, and the thinking around the word mediation. Let’s start thinking about it and calling it “an opportunity”. That’s really what mediation is; an opportunity for parties in conflict to come together and sort out their problem(s). It doesn’t have to be the only option, but it should be considered as a first step.

Read More
PREV NEXT