FAIR PAY AGREEMENTS

Fair Pay Agreements (FPAs) went into effect on 1 December 2022.


Fair Pay Agreements are now in effect. The legislation is complex and technical. If a union initiates bargaining in a sector that covers any of your employees, you will have immediate obligations as an employer.  To help, you can find more information in this presentation (PDF download). 

The Chamber in coordination with BusinessNZ and our wider network are continuously working to provide guidelines and resources to help our members understand their obligations if a Fair Pay Agreement is initiated in their sector. If you are interested in being kept informed as further information is available, please email [email protected].

If you need advice on Fair Pay Agreements, please contact our team at [email protected] or 03 366 5096.

RECOMMENDED RESOURCES -

1. A quick guide for employers

A Fair Pay Agreement must include who is covered by the FPA; standard hours; minimum pay rates, including overtime and penalty rates; training and development; how much leave an employee can have; and how long the FPA applies for. Read this Employment New Zealand guide to learn more -

    Understanding Fair Pay Agreements - employer quick guide >


2. The Fair Pay Agreement system

This diagram illustrates the FPA system, which includes initiation of a proposed FPA, the bargaining process, voting (ratification) on the employment terms, and finalisation. Once finalised, the Fair Pay Agreement is put into law.

   View 'The Fairpay Agreement system' diagram on employment.govt.nz >

 


3. Employer responsibilities and rights

Understanding your responsibilities is key to the initiation process. Below is a link to an overview from Employment New Zealand about your rights and responsibilities under the Fair Pay Agreements law and how to take part in the process as an employer.

   Overview of Employer responsibilities and rights in the FPA process >


4. Overview of the Fair Pay Agreements process

Employees, employers and their bargaining sides all have different roles and responsibilities in the Fair Pay Agreements process.  To get a better understanding of the process, read through this overview from Employment New Zealand - 

   The Fair Pay Agreements system – an overview >