Equal Pay Act 1972

Pay equity claims - Settling pay equity claim

13ZI: Unfair bargaining for pay equity claim settlement

You could also call this:

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

When you are bargaining for a pay equity claim settlement, it is unfair if you raised the claim as an individual employee, not with a union. You must also be in a situation where you are unable to understand the settlement properly, or you are relying on your employer's advice. This can happen if you have a diminished capacity due to age, sickness, or a disability, or if you are under emotional distress.

If your employer knows or should know about your situation, and you are not able to make a proper decision, the bargaining is unfair. Your employer should not take advantage of you if you are in a vulnerable position.

You are also in an unfair situation if you are forced to agree to the settlement through oppressive means, or if you did not have a chance to get independent advice. In this case, a pay equity claim settlement includes any terms or conditions of the settlement, as defined in the pay equity claim settlement term.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS427335.


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13ZH: Settling pay equity claim, or

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


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13ZJ: Remedies for unfair bargaining, or

"What happens if an employer doesn't bargain fairly with you"

Part 4Pay equity claims
Settling pay equity claim

13ZIUnfair bargaining for pay equity claim settlement

  1. Bargaining for a pay equity claim settlement is unfair if—

  2. the pay equity claim was raised by an individual employee (not by a union); and
    1. 1 or more of paragraphs (a) to (d) of subsection (2) apply to the employee; and
      1. the employer, or the employer’s representative,—
        1. knows of the circumstances described in the paragraph or paragraphs that apply to the employee; or
          1. ought to know of the circumstances in the paragraph or paragraphs that apply to the employee because the employer or the employer’s representative is aware of facts or other circumstances from which it can be reasonably inferred that the paragraph or paragraphs apply to the employee.
          2. The circumstances are that the employee, at the time of bargaining for or entering into the pay equity claim settlement,—

          3. is unable to understand adequately the provisions or implications of the settlement by reason of diminished capacity due (for example) to—
            1. age; or
              1. sickness; or
                1. mental or educational disability; or
                  1. a disability relating to communication; or
                    1. emotional distress; or
                    2. reasonably relies on the skill, care, or advice of the employer or a person acting on the employer’s behalf; or
                      1. is induced to enter into the settlement by oppressive means, undue influence, or duress; or
                        1. had not been given a reasonable opportunity to seek independent advice about the agreement.
                          1. In this section, pay equity claim settlement includes a term or condition of a pay equity claim settlement.

                          2. Except as provided in this section, an employee must not challenge or question a pay equity claim settlement on the ground that it is unfair or unconscionable.

                          Compare
                          Notes
                          • Section 13ZI: inserted, on , by section 18 of the Equal Pay Amendment Act 2020 (2020 No 45).