Employment Relations Act 2000 Article Index for
Employment
Website Links For
Employment Relations
 

Information About

Employment Relations Act 2000





NZ Information

  Short Title Employment Relations Act
  Long Title No long title
  Introduced By
  Date Passed 2000
  Royal Assent
  Commencement October 2, 2000
  Amendments 2001, 2004
  Related Legislation Industrial Conciliation And Arbitration Act 1894 , Industrial Relations Act 1973 , Labour Relations Act 1987 , Employment Contracts Act 1991


The New Zealand Employment Relations Act 2000 (sometimes known by its acronym, '''ERA''') is a Statute of the New Zealand Parliament . It was substantially amended by the Employment Relations (Validation of Union Registration and Other Matters) Amendment Act 2001 and by the ERAA (No 2) 2004.


PRECEDING STATUTES

The original statute governing employment relations in New Zealand was the Industrial Conciliation And Arbitration Act 1894 (ICAA). It remained in force for 80 years from 1894 to 1973.

In 1973, the Third Labour Government brought in the Industrial Relations Act 1973.

In 1987, the Fourth Labour Government brought in the Labour Relations Act 1987.

In 1991, the Fourth National Government brought in the Employment Contracts Act 1991 It was in force from 15 May 1991 to 2 October 2000 when it was repealed by the Fifth Labour Government and replaced with the ERA.

The ICAA and IRA gave the most power to a government agency to force employers and employees to reach an agreement. The ECA gave the most freedom to employers and employees to reach agreement without government intervention. The LRA, the ERA 2000 and the ERAA 2004 lie in the middle of this spectrum.


COURTS AND INSTITUTIONS

Each Act established a Court or institution to settle Industrial disputes.
The ICCAA had the Court of Arbitration.
The IRA had the Industrial Court and the Industrial Commission which was replaced in 1977 by Arbitration Court.
The LRA had the Labour Court and the Arbitration Commission.
The ECA had the Employment Court and the Employment Tribunal.
The ERA established the Employment Court, the '''Employment Relations Authority''', and the '''Mediation Service'''.

The judges of the Employment Court are appointed by the Governor-General on the advice of the Attorney-General (section 200). The members of the Employment Relations Authority are appointed by the Governor-General on the advice of the Minister (section 167). The Mediation Service is run by the Department of Labour.


The Employment Court

Section 187 of the ERA gives the Employment Court jurisdiction over all matters relating to Employment disputes. The Employment Court is a court of record and has equal standing to the High Court of New Zealand.


The Employment Relations Authority

Section 157 states that the Employment Relations Authority is an investigative body that examines the facts of the case, as opposed to legal technicalities, in seeking to resolve problems with the parties' employment relationship.


The Mediation Service

Section 144 establishes the Mediation Service. It is currently run by the Department Of Labour with the mediators being employees of the Department. Section 164 (b) says that the parties should have tried to solve their problems before going to the Employment Relatons Authority.


COVERAGE OF THE ERA

Almost all employees in NZ are covered by the ERA (section 6). The ERA covers persons who do any work for payment for an employer under a contract of service. Payment may include commissions, piece rates, salaries, or wages. In 2007 The Employment Relations Authority decided that some Ukrainian sailors, who entered into their employment agreements in Russia and were working on a Russian registered ship in NZ waters for a NZ-based charter were entitled to get the NZ minimum wage while in NZ waters.1.''Your rights: Working under Aussie law'', NZ Herald:

However, The Armed Forces, Judges, the NZ SIS , and to some extent the Police are not covered.2.''Police officers quit after rural station woes'', wwww.stuff.co.nz: The ERA specifically includes homeworkers, for example, a person who buys material from a provider to make shirts at home and then sells the shirts back to the provider, and persons intending to work, that is, those who have accepted a job offer but not yet started working. It specifically excludes volunteers.

The ERA does not cover the relationship between principal and contractor or between contractor and sub-contractor. When the nature of the employment relationship is in doubt the Employment Court "must consider all relevant matters" pertaining to the nature of the relationship. (section 6(3)a).


EMPLOYEE VS INDEPENDENT CONTRACTOR

Independent contractors are not covered by the ERA. Whether a worker is an independent contractor or an employee can be difficult to determine. In ''Bryson v Three Foot Six Ltd'' (2003) & (2005),3. 7 NZELC 97,317 & 7 NZELC 97,866: the Employment Relations Authority decided Bryson was a contractor but the Employment Court and the Supreme Court decided he was an employee.

The Employment Court may consider the following factors when deciding when a person is an employer or a contractor.
  • The intention of the parties, that is, the terminology used in their contract.

  • Whether one party is able to exercise control over how the other party does the work and to what degree.

  • Whether the worker is free to get another person to do part of the work.

  • Which party provides the tools or equipment need to do the job. ''Hook v JB's Contractors Ltd'' (2001).4. 6 NZELC 96,207:

  • Whether the alleged contractor hires their own workers or not. ''Hook''

  • Which party is assuming the risk of making a profit or a loss. ''Hook''

  • The amount of responsibility for management and investment each party has. ''Hook''

  • The way in which taxes are paid (or avoided). Employers must deduct PAYE and ACC levies from employees wages.

  • The way in which workers are paid.