Individual & collective agreements
Collective employment agreement
Must be in writing.
Must explain the dispute resolution processes available in plain language, and refer specifically to the statutory period of 90 days within which a personal grievance must be lodged.
Must be signed by every union and every employer covered by it.
Must specify who and what it covers.
Must specify what will happen if an employee’s work is contracted out, or if an employer’s business is sold or transferred (to protect employees from being disadvantaged in these circumstances).
Must provide for the agreement to be varied and explain how.
Must specify when and how the agreement will expire.
Individual employment agreement
Must be in writing.
Must explain the dispute resolution processes in plain language, including a specific reference to the statutory period of 90 days within which a personal grievance must be lodged.
Must include the names of the employer and employee concerned.
Must have a description of the work to be undertaken.
Must have an indication of where the work is to be done.
Must have an indication of the hours the employee is expected to work.
Must show the wages or salary payable to the employee.
Collective employment agreements
Collective employment agreements are defined in section 5 of the Employment Relations Act as ‘...an agreement that is binding on
- (a) one or more unions; and
- (b) one or more employers; and
- (c) two or more employees.’
The duty to act in good faith is prescribed. Only unions may represent employees as bargaining agents when negotiating collective employment agreements (CEAs).
Individual employment agreements
The Act defines individual employment agreements (IEAs) as ‘...an employment agreement entered into by one employer and one employee who is not bound by a collective agreement that binds the employer’.
The duty to act in good faith applies equally to CEAs and IEAs. The Employment Relations Act protects employees with an IEA from ‘unfair bargaining’, as the circumstances surrounding them are more flexible.
Clauses in an employment agreement
Administrative clauses set the context for the agreement. They include who the parties are, whether more parties may be included later, and when the agreement will start and finish.
Procedural clauses set out processes for circumstances such as disciplinary procedures, dispute and grievance procedures, or procedures to challenge decisions about things like performance appraisals or promotions.
Substantive clauses set out the substance of the agreement, including the rate of payment, holidays, performance bonuses, hours of work, and the nature of the work to be performed.
Universal clauses apply to all of the parties to the contract. These might include obligations that the parties might agree to during bargaining.
Specific clauses apply only to some of the people covered by the agreement. These might include entitlements to special leave for study or training, or particular benefits like transfer costs for employees who have to move from one town to another.
Right to obtain independent advice
Employers must provide individuals with a copy of the proposed employment agreement and give them a reasonable opportunity to seek independent advice before they sign it (section 64).
Limitations on fixed-term contracts
Employers may not use fixed-term contracts to avoid statutory rights for permanent employees, or to place new employees on trial.