Plain language law

New Zealand law explained for everyone

Equal Pay Act 1972

Pay equity claims - Claims involving multiple employers

13L: Opting out of multi-employer pay equity claim

You could also call this:

"How to leave a shared pay fairness claim with other employers"

You can opt out of a multi-employer pay equity claim. An employer can do this by giving notice to all other parties. If an employer opts out, their claim will be progressed separately.

You might be wondering how unions are involved. If two or more unions have raised a claim together, they can opt out jointly. They must have genuine reasons and act together to do so.

A single union can also opt out, but only if they are the only union that has raised a claim with that employer. They must have genuine reasons and be the only union involved. If a union opts out, their claim will also be progressed separately.

When opting out, a notice must be given in writing. This notice must state the reasons for opting out and the grounds for those reasons. You can give this notice at any time before the claim is settled.

There is also a rule about applying to the Authority under section 13ZY. A party cannot apply for a determination concerning an employer's decision to opt out of a multi-employer claim. This means you cannot ask the Authority to review an employer's decision to opt out.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS427268.

Topics:
Rights and equality > Anti-discriminationWork and jobs > Worker rights
Previous

13K: Union-raised claims raised with multiple employers: employers must enter into pay equity process agreement, or

"When a union helps workers claim fair pay from many employers, those employers must work together to fix the problem."

Next

13M: Multiple union claims raised with single employer: unions must consolidate, or

"When two unions make similar pay claims to the same employer, they must combine them into one claim."

Part 4Pay equity claims
Claims involving multiple employers

13LOpting out of multi-employer pay equity claim

  1. An employer may opt out of a multi-employer pay equity claim by giving notice to all other parties.

  2. If an employer opts out of a multi-employer pay equity claim, the claim in respect of that employer must be progressed as a separate claim.

  3. Subsection (4) applies if 2 or more unions have jointly raised a claim with an employer, or have consolidated their claims raised with an employer (as required by section 13M), and the claim raised with the employer is part of a multi-employer pay equity claim.

  4. The unions may opt out of the multi-employer pay equity claim raised with the employer by giving notice to all other parties only if—

  5. the unions have genuine reasons, based on reasonable grounds, to do so; and
    1. the unions act jointly.

      1. If 2 or more unions jointly opt out of a multi-employer pay equity claim in respect of an employer under subsection (4), the unions’ joint claim in respect of that employer must be progressed as a separate claim.

      2. A union may opt out of a multi-employer pay equity claim in respect of an employer only if—

      3. the union has genuine reasons, based on reasonable grounds, to do so; and
        1. the union is the only union that has raised a claim with that employer in respect of the work to which the claim relates.

          1. If a union opts out of a multi-employer pay equity claim in respect of an employer under subsection (6), the union’s claim in respect of that employer must be progressed as a separate claim.

          2. A notice opting out of a multi-employer pay equity claim may be given by an employer under subsection (1), by unions jointly under subsection (4), or by a single union under subsection (6), at any time before the claim is settled.

          3. A notice opting out of a multi-employer pay equity claim—

          4. must be given in writing; and
            1. in the case of a notice given by 1 or more unions under subsection (4) or (6), must state the genuine reasons of the union or unions for opting out and the reasonable grounds on which those reasons are based.

              1. A party may not apply to the Authority under section 13ZY for a determination concerning an employer’s decision under this section to opt out of a multi-employer claim.

              Notes
              • Section 13L: inserted, on , by section 18 of the Equal Pay Amendment Act 2020 (2020 No 45).
              • Section 13L(1): amended, on , by section 15(1) of the Equal Pay Amendment Act 2025 (2025 No 21).
              • Section 13L(9): replaced, on , by section 15(2) of the Equal Pay Amendment Act 2025 (2025 No 21).
              • Section 13L(10) heading: inserted, on , by section 15(2) of the Equal Pay Amendment Act 2025 (2025 No 21).
              • Section 13L(10): inserted, on , by section 15(2) of the Equal Pay Amendment Act 2025 (2025 No 21).