skip to Main Content
03 545 0877  

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.

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).

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.

You get reassurance that your employment matters are dealt with professionally, so you can go back to doing what you do best.

Help with anything in the employment life cycle from recruitment and employment agreements to disciplinaries and disputes and anything else in between.


Follow Us


Physical Address:
56 Waimea Road Nelson 7010

Postal Address:
PO Box 1615 Nelson, 7040

Our Newsfeed

Subscribe to our News Feed for the latest industry updates.

Back To Top