Do you know the penalty or fine for not having a signed employment agreement for an employee? The new year could be a good time to check your employment agreements, make sure you have a current signed one for every employee, and that they are up to date and fit for purpose. Try this Q&A to test the basics.
Fair Pay Agreements: Test your Knowledge
Are you up to speed with the Fair Pay Agreement process, your obligations, and how it may affect your business? Test your knowledge by reviewing these scenarios.
Yes. A FPA will cover everyone in the industry or occupation specified in the coverage clause of the FPA regardless of whether they are union members or not.
No. If the coverage clause in the FPA includes their industry or occupation the FPA must be applied to them.
No. If the coverage clause includes the employee’s industry or occupation the FPA must be applied to them. Neither the employer or the employee have a choice to opt out even if they agree to
The employee can be covered by more than one FPA, but the terms and conditions of the more favourable (advantageous) FPA will be the FPA that applies to the employee.
Once a union has been approved to be the ‘initiating bargaining agent’ for an FPA for the employee, that union must use best endeavours to identify and contact each employer so that the process of identifying the employees who will be covered begins. Once a FPA has been finalised (and approved) a notice is sent to all relevant employers to let them know.
MBIE has a website that has all this information. https://www.mbie.govt.nz/business-and-employment/employment-and-skills/fair-pay-agreements/fpa-dashboard
Yes, the Fair Pay Agreement Act specifically states an FPA must include these terms.
No. The Fair Pay Agreement Act specifically states an employer cannot engage someone as a contractor to avoid obligations under an FPA. An employer can still engage the services of independent contractors, but if the nature of the relationship still ‘appears’ to be an employer/employee relationship- then it will be presumed that the contract was entered into to avoid the Fair Pay Agreement Act (and penalties may apply).
The Fair Pay Agreements Act 2022.
If you have any questions about your obligations as an employer, do not hesitate to contact us to discuss this with one of our Consultants.
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