Equal Pay Act 1972

Pay equity claims - Settling pay equity claim

13ZF: Requirement for union to obtain mandate before settling pay equity claim

You could also call this:

"Unions must ask employees to vote on pay equity settlements before agreeing to them."

If you are part of a union that is making a pay equity claim, the union needs to follow some rules. The union must ask you and the other employees covered by the claim to vote on whether to accept a proposed settlement. You will get to vote on whether to approve or decline the proposed settlement.

The union must tell you and your employer about the voting process before it starts. You will get a copy of the proposed settlement and information about how to vote. You need to know that if the settlement is approved, it will affect your employment contract and you won't be able to make your own pay equity claim.

The union can only accept a settlement if most of the employees who vote agree to it. You can vote to approve or decline the settlement, and the union must follow the rules when counting the votes. If you are not a union member, you can opt out under section 13Y by the final voting date.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS427327.


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Part 4Pay equity claims
Settling pay equity claim

13ZFRequirement for union to obtain mandate before settling pay equity claim

  1. This section applies to—

  2. a union that is the claimant in a pay equity claim; and
    1. each employee who is covered by the union-raised claim (proposed settlement employee).
      1. The union must establish a process for proposed settlement employees to vote on whether to approve or decline a proposed pay equity claim settlement.

      2. The union must, before the process begins, give notice of the process to—

      3. the proposed settlement employees; and
        1. the employer or employers who are parties to the claim.
          1. The process must ensure that—

          2. each proposed settlement employee is entitled to vote and all votes have equal weight; and
            1. each proposed settlement employee is provided with a copy of a proposed pay equity claim settlement within a reasonable time before voting starts; and
              1. each proposed settlement employee is given reasonable notice—
                1. that they are entitled to vote; and
                  1. of the final date by which their vote must be cast; and
                    1. of the method by which votes may be cast; and
                      1. that, if the proposed pay equity claim settlement is approved, the union must sign it; and
                        1. of the consequences of the union entering into the settlement (including that the employee’s employment contract will be varied and the employee will lose the ability to bring their own claim relating to pay equity); and
                          1. that the final date by which their vote must be cast is also the final date on which employees who are not members of the union may opt out under section 13Y.
                          2. A union may not enter into a pay equity claim settlement unless—

                          3. a vote has been taken in accordance with the process established under subsection (2); and
                            1. a simple majority of those proposed settlement employees who voted, voted in favour of approving the proposed pay equity claim settlement.
                              Notes
                              • Section 13ZF: inserted, on , by section 18 of the Equal Pay Amendment Act 2020 (2020 No 45).