Equal Pay Act 1972

Pay equity claims - Settling pay equity claim

13ZM: Effect of pay equity claim settlement on employment agreements

You could also call this:

"What happens to your job agreement when a pay equity claim is settled"

When a pay equity claim is settled, it affects your employment agreement. If you are an employee covered by the settlement, your employer must pay you the agreed remuneration if it is more than what your employment agreement says. Your employment agreement will also include any better terms or conditions from the pay equity claim settlement.

The changes to your employment agreement start from the date of the pay equity claim settlement. If you accept the benefits of the settlement later, the changes start from the date you accept it. A pay equity claim settlement cannot take away entitlements you already have in your employment agreement.

You and your employer can still agree on terms or conditions that are better for you than what is in the pay equity claim settlement. This is allowed under the Equal Pay Act 1972, which was amended by the Equal Pay Amendment Act 2020. The settlement will be applied to your employment agreement as required by law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS427344.


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13ZL: Offers of benefit of pay equity claim settlement to other employees, or

"Getting the same pay and work conditions as others who made a pay equity claim"


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13ZN: Relationship between pay equity claims and collective bargaining, or

"How collective agreements affect ongoing pay equity claims"

Part 4Pay equity claims
Settling pay equity claim

13ZMEffect of pay equity claim settlement on employment agreements

  1. A pay equity claim settlement binds—

  2. every employer who was a party to the claim; and
    1. every employee who is covered by the pay equity claim settlement.
      1. The employment agreement (whether individual or collective) of an employee who is covered by a pay equity claim settlement is deemed to be varied to—

      2. require the employer to pay the employee the remuneration agreed in the pay equity claim settlement, if that remuneration exceeds the amount specified in the employment agreement before the variation required by this section; and
        1. include any other terms or conditions that are included in the pay equity claim settlement and that are more favourable to the employee than the terms and conditions of employment in the employee’s employment agreement before the variation required by this section.
          1. The variation referred to in subsection (2) is effective from—

          2. the date of the pay equity claim settlement; or
            1. in the case of an employee who accepts an offer of the benefit of the pay equity claim settlement, the date on which the employee accepts that offer.
              1. A pay equity claim settlement that contains a term or condition that excludes, restricts, or reduces an employee’s entitlements under the employee’s employment agreement has no effect to the extent that it does so.

              2. Nothing in this Act prevents an employer and an employee from agreeing to a term or condition of employment in an employment agreement that is more favourable to the employee than the terms and conditions of employment in a pay equity claim settlement.

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