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Building Societies Act 1965

Conversion to company

113K: Employees

You could also call this:

“Rules for employees when a building society becomes a company”

If a building society becomes a company, some important things happen for the employees on the day the change takes place. This day is called the conversion date.

On the conversion date, everyone who works for the building society becomes an employee of the new company. Your job doesn’t stop and start again - it’s like your employment just carries on without a break. The time you worked for the building society counts as time working for the new company.

Your job conditions, like your pay and holidays, stay the same as they were before. They can only be changed in the same way they could have been changed when you worked for the building society.

You don’t get any extra money or benefits just because the building society has turned into a company. Your job is considered to have continued, so there’s no special payment for the change.

These rules are there to make sure that when a building society becomes a company, the employees’ jobs are protected and continue smoothly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM372337.

Topics:
Money and consumer rights > Banking and loans Work and jobs > Worker rights
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Part 7A Conversion to company

113KEmployees

  1. Notwithstanding any other provision of this Act, the following provisions shall have effect in respect of any society that becomes converted into a company pursuant to this Part on and after the conversion date—

  2. on the conversion date each employee of the society shall become an employee of the company but, for the purposes of every enactment, law, award, determination, contract, and agreement relating to the employment of each such employee, the contract of employment of that employee shall be deemed to have been unbroken and the period of service with the society shall be deemed to have been a period of service with the company:
    1. the terms and conditions of employment of each such employee shall, until varied, be identical with the terms and conditions of that employee's employment with the society immediately before the conversion date and be capable of variation in the same manner:
      1. no such employee shall be entitled to receive any payment or other benefit by reason only of that employee ceasing to be an employee of the society by virtue of the society becoming converted into a company under this Part.

        Notes
        • Section 113K: inserted, on , by section 26 of the Building Societies Amendment Act 1987 (1987 No 175).