If passed, employee opting for individual agreement may avail of 90-day trial from the start
The government plans to remove the 30-day rule, which will enable employees and employers to agree on more employment terms, including those differing from the collective employment agreement, for the first 30 days.
“Currently, if a collective agreement is in place the employee’s individual agreement must reflect the terms of the collective agreement and that applies for 30 days regardless of whether an employee chooses to join a union or not,” said Brooke van Velden, New Zealand’s workplace relations and safety minister, in a government news release.
“If a new employee chooses to negotiate the terms and conditions that suit their personal preferences or situation, they should have that choice realised from day one of employment,” van Velden added.
The government announced that it also intends to reduce related employer obligations and adjust the way employers communicate and report back on union membership for new employees. The Employment Relations Amendment Bill will cover these changes. The government said it expects to introduce the legislation this year and pass it by year-end.
The amendments will also make 90-day trials available from the beginning of employment if the employee has chosen an individual employment agreement. This change seeks to help New Zealanders find employment more easily and help employers be more confident about their hiring decisions, van Velden said.
Under the amendments, employers no longer need to use the ‘active choice form’ but still have to tell the employee they can join a union party to the collective employment agreement, which will bind them upon joining. The employer also needs to provide the union’s contact information.
The upcoming amendments aim to repeal changes introduced by the previous government, promote freedom of choice, lighten the burden on employers dealing with new employees, and ensure employees remain well-informed when making decisions about the employment agreement or union membership, van Velden said.
“I am striking the right balance between ensuring information about unions is available to new employees, protecting the personal choice of workers and reducing the compliance burden for employers,” she said.
The current process is convoluted, confusing, more burdensome in terms of administrative costs, and detrimental to workplace productivity, van Velden said.
