Breadcrumb

Employment Contracts Act 1991 (No.22 of 1991)

Country(ies)

New Zealand

Subjects (Classification)

Conditions of employment; Employment security, termination of employment; Freedom of association, collective bargaining and industrial relations; Non-discrimination

Adopted on (Date of text)

1991-05-07

Scope of text

National

Type of legislation (Type of text)

Law, Act

Abstract/Citation

This Act repeals the Labour Relations Act 1987, and its subsequent amendments. The overall purpose of the Act is to "promote an efficient labour market". The Act is divided into 9 Parts. Part I concerns freedom of association. It reintroduces voluntary membership of employee organisations and prohibits any arrangements that require an employee to be a member of an employees organisation. Discrimination in employment on the grounds of membership or non-membership of an employees organisation is also prohibited. Part II deals with individual and collective bargaining structures for the conclusion of employment contracts. Employees are free to choose who will represent them in bargaining and employers have to recognise a bargaining agent's actual authority to represent the employee or employees concerned. Part III covers personal grievances such as those based on allegations of unjustifiable dismissal, sexual harrassment and discrimination. Union coverage is no longer to be the trigger for access to the procedure. Instead, access will be based on the employment contract. The role of the Labour Court is restricted to the determination of questions of law that arise out of the decisions of the grievance committees. Finally, the failure by an employer to observe any procedural requirements in dismissing an employee is not of itself sufficient to render that dismissal unjustifiable if, but for that failure, the dismissal would otherwise have been substantively justifiable. Part IV concerns the enforcement of employment contracts. Part V governs strikes and lockouts. In general, a strike or a lockout will be lawful if there is no current collective employment contract or no new matter. Part VI establishes a Mediation Service and an Employment Court with limited functions and jurisdiction because of the different nature of the Bill. Part VII is composed of miscellaneous provisions. Part VIII amends numerous Acts including the Human Rights Commission Act 1977 and the Trade Unions Act 1908. Part IX provides for the repeals referred to above as well as transitional provisions.