Employment Relations Amendment Bill: Potential changes to consider

Introduction

The Employment Relations Amendment Bill was introduced into Parliament on 26 April 2013 and passed its first reading on 5 June 2013. The Bill introduces many changes to the Employment Relations Act 2000 relating to the following key areas: 

• Restructuring and the Privacy Act 
• Collective Bargaining 
• Trial periods 
• Flexible working hours 
• Part 6A (vulnerable workers) 
• Rest and meal breaks; 
• Strikes and lockouts 
• Employment Relations Authority decisions 

Restructuring and the Privacy Act

Following the recent Employment Court decisions, some uncertainty arose in terms of what information employers are required to release to those interviewed for prospective jobs. The Amendment Bill provides a specific list of information which an employer does not have to disclose particularly in relation to confidential information. 

Collective bargaining

Concluding bargaining

Currently the parties in employment relationships are required to conclude bargaining on collective employment agreements unless there is a real reason not to do so. In addition to this, the parties are also required to continue bargaining even though when deadlock has been reached. The Amendment Bill seeks to remove the requirement to continue bargaining when deadlock has been reached and repeals the section which requires parties to conclude a collective agreement. The Amendment Bill emphasises good faith negotiations rather than negotiations merely for statutory requirements. 

Initiation of bargaining timeframes 

The current law allows for different time periods between employer and employee for initiating bargaining when renewing existing collective agreements. The Amendment Bill seeks to align both employer and employee time limits for the various steps that are to taken. 

Opting out of multi-employer bargaining 

Under the Amendment Bill, multi-employer bargaining may be opted out of within a ten day period. This must be by notice and must be served on all parties without going through the current provisions and steps for bargaining to reach settlement. 

Ending collective bargaining

Currently the Act assumes that parties will continue to bargain until settlement is reached. The Amendment Bill seeks to allow parties who are no longer interested in bargaining to ask the Employment Relations Authority to declare bargaining as concluded. 

Offering the collective agreement to new employees

Currently when a new employee begins employment where collective agreements are available, the employee has benefit of the terms and conditions under the collective agreement (for the first 30 days) and any specific individual terms negotiated. The Amendment Bill removes the automatic adoption to the collective agreement terms and conditions availability but rather allows the employer to inform the employee about these should they wish to be part of it. 

Flexible working

Reasons for requests

Currently employees have a statutory right to request flexible working hours when three criteria apply (care of another person; six months service to the employer and the employee has not made a request in the last twelve months). The Bill removes these criteria allowing any employee to make a request at any time. 

Timing of response by employer

Currently an employer is required to respond within three months. Should the Bill be passed, employers must respond within one month. 

Part 6A

Part 6A was inserted in 2004 and substituted in 2006 as a protection for employees (typically in service industries) who have been affected by a restructure followed by the same or a similar service being done by another employer. The Bill allows for more certainty and security for “vulnerable workers” in terms of the time by which employees must choose to transfer by, liability for transferring service-related entitlements, change of pay rates and conditions, and the transfer of information. 

Meal and rest breaks

The proposed amendments would take away the stringent regime for meal breaks allowing employees to take breaks when reasonable and necessary in the course of work period. Meal and rest breaks must provide the employee with reasonable opportunity to rest, attend to personal matters, for refreshments and be appropriate for the duration of the work period. 

Strikes and lockouts

The Bill allows employers to deduct pay for a partial strike by employees to the value of productivity that was lost during the strike time (apart from a lawful partial strike on health and safety grounds). In order for the strike to adhere to statutory requirements, the employer must be given notice, following which the employee must be notified of any deductions that are to be made. Minimum wage provisions will not apply to the extent that the person is paid less than the minimum wage because of a deduction due to a partial strike. 

Employment Relations Authority decisions

The Bill will require the Authority to deliver a written decision within three months of the investigation meeting as well as giving an initial indication of what the findings of the ERA might be. 

How this will affect you

The Bill sets out a number of potential changes to the current Act. It is important to note that these changes are not in effect yet, and there are a number of steps in the process before any of these changes can take effect. There have been no dates indicated at this stage. 

If you would like further information please contact Renika Siciliano on 07 958 7429.