Equal Pay Act 1972

Pay equity claims - Settling pay equity claim

13ZH: Settling pay equity claim

You could also call this:

"Agreeing on fair pay for men and women at work"

When you settle a pay equity claim, it means you have agreed on a fair pay rate. You agree that the pay rate does not unfairly treat male and female employees differently, as explained in section 2AAC(b). You also agree on when the new pay rate will start.

If you and the other party cannot agree, the Authority or the court can make a decision, following section 13ZZC. They will decide if the pay rate is fair and if it should be increased over time. The decision will be based on section 2AAC(b), which explains how to make sure pay rates are fair for both male and female employees.

When you settle a pay equity claim, you can include other work conditions, not just pay. But your employer cannot make your work conditions worse just to settle the claim. You must write down the agreement and include important details, such as the new pay rate and when it will start. If multiple unions or employers are involved, you will need to sign a single agreement.

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 It might be out of date or be missing some parts.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=LMS427332.


Previous

13ZG: Application of section 63A of Employment Relations Act 2000 to pay equity bargaining, or

"Rules for fair pay talks between employers and employees"


Next

13ZI: Unfair bargaining for pay equity claim settlement, or

"Unfair treatment when settling a pay equity claim on your own"

Part 4Pay equity claims
Settling pay equity claim

13ZHSettling pay equity claim

  1. A pay equity claim is settled

  2. when—
    1. remuneration is determined that the parties agree does not differentiate between male and female employees in the manner set out in section 2AAC(b); and
      1. the parties agree that remuneration is to be increased to that agreed level on the date of the pay equity claim settlement or in agreed phases over a maximum period of 3 years from that date; and
        1. those matters are recorded in writing in accordance with subsection (3); or
        2. when the Authority or the court (subject to section 13ZZC)
          1. determines that an employee’s remuneration does not differentiate between male and female employees in the manner set out in section 2AAC(b); or
            1. issues a determination that—
              1. fixes remuneration that does not differentiate between male and female employees in the manner set out in section 2AAC(b); and
                1. specifies that remuneration is to be increased in 3 annual phases of equal amounts or proportions starting at the date of the pay equity claim settlement; or
                2. if the parties have agreed on remuneration that does not differentiate between male and female employees in the manner set out in section 2AAC(b), but have not agreed on whether the remuneration is to be increased in phases, issues a determination—
                  1. that remuneration is to be increased to the agreed level on the date of the pay equity claim settlement; or
                    1. that remuneration is to be increased to the agreed level in phases and that specifies the number of phased instalments, their amounts or proportions, and their timing (over a maximum period of 3 years from the date of the pay equity claim settlement).
                  2. A pay equity claim settlement may also include terms and conditions of employment other than remuneration, if the parties agree, but an employer may not reduce any terms and conditions of employment of an employee who has raised a pay equity claim or who is covered by a union-raised claim for the purpose of settling that claim.

                  3. The parties may not agree to review, or agree on a process for the review of, a pay equity claim settlement.

                  4. A pay equity claim settlement agreed between the parties must—

                  5. be in writing; and
                    1. state—
                      1. that it is a pay equity claim settlement for the purposes of this Act; and
                        1. the name of the employer; and
                          1. the name of the claimant to whom the settlement relates; and
                            1. in the case of a settlement of a union-raised pay equity claim, a description of the work to which the settlement relates; and
                              1. in the case of a pay equity claim settlement with an individual employee, the employee’s occupation and position; and
                                1. the remuneration that the parties agree does not differentiate between male and female employees in the manner set out in section 2AAC(b); and
                                  1. whether remuneration is to be increased on the date of the pay equity claim settlement or in phases; and
                                    1. if remuneration is to be increased in phases, the number of phased instalments, their amounts or proportions, and their timing (over a maximum period of 3 years from the date of the pay equity claim settlement); and
                                      1. terms and conditions of employment other than remuneration that the parties have agreed to include (if any); and
                                          1. include a summary of the method used to assess the pay equity claim and a description of the comparators that were considered by the parties.
                                            1. Settlement of a multi-employer pay equity claim must be recorded in a single multi-employer pay equity claim settlement that is signed by each union and each employer who is a party to the claim at the time of the settlement.

                                            2. Settlement of a pay equity claim raised by multiple unions with a single employer must be recorded in a single pay equity claim settlement that is signed by the employer and by each union that is a party to the claim at the time of the settlement.

                                            Notes
                                            • Section 13ZH: inserted, on , by section 18 of the Equal Pay Amendment Act 2020 (2020 No 45).
                                            • Section 13ZH(1)(a)(ii): replaced, on , by section 30(1) of the Equal Pay Amendment Act 2025 (2025 No 21).
                                            • Section 13ZH(1)(b): amended, on , by section 30(2) of the Equal Pay Amendment Act 2025 (2025 No 21).
                                            • Section 13ZH(1)(b)(ii): replaced, on , by section 30(3) of the Equal Pay Amendment Act 2025 (2025 No 21).
                                            • Section 13ZH(1)(b)(iii): inserted, on , by section 30(3) of the Equal Pay Amendment Act 2025 (2025 No 21).
                                            • Section 13ZH(2A): inserted, on , by section 30(4) of the Equal Pay Amendment Act 2025 (2025 No 21).
                                            • Section 13ZH(3)(b)(via): inserted, on , by section 30(5) of the Equal Pay Amendment Act 2025 (2025 No 21).
                                            • Section 13ZH(3)(b)(vib): inserted, on , by section 30(5) of the Equal Pay Amendment Act 2025 (2025 No 21).
                                            • Section 13ZH(3)(b)(viii): repealed, on , by section 30(6) of the Equal Pay Amendment Act 2025 (2025 No 21).
                                            • Section 13ZH(3)(b)(ix): repealed, on , by section 30(6) of the Equal Pay Amendment Act 2025 (2025 No 21).