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4: Parties to employment relationship to deal with each other in good faith
or “People at work should be honest, kind, and helpful to each other, like good friends.”

You could also call this:

“You can get in trouble for breaking the rules about being fair at work.”

If you are part of an employment relationship, you have a duty to act in good faith. This duty is explained in [section 4(1)]. If you don’t follow this duty, you might have to pay a penalty. You could face a penalty if:

You deliberately, seriously, and continuously fail to act in good faith.

You try to weaken negotiations for an employment agreement, either for an individual or a group.

You try to undermine an existing employment agreement, either for an individual or a group.

You try to damage an employment relationship.

You try to interfere with the process of resolving a pay equity claim, as described in [Part 4 of the Equal Pay Act 1972].

You break the rules set out in [section 59B] or [section 59C].

These rules help make sure that everyone in an employment relationship treats each other fairly and respectfully.

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Next up: 4B: Employer’s general obligation to keep records relating to minimum entitlement provisions

or “Employers must keep detailed records to show they follow the rules about workers' basic rights.”

Part 1 Key provisions
Good faith employment relations

4APenalty for certain breaches of duty of good faith

  1. A party to an employment relationship who fails to comply with the duty of good faith in section 4(1) is liable to a penalty under this Act if—

  2. the failure was deliberate, serious, and sustained; or
    1. the failure was intended to—
      1. undermine bargaining for an individual employment agreement or a collective agreement; or
        1. undermine an individual employment agreement or a collective agreement; or
          1. undermine an employment relationship; or
            1. undermine the pay equity claim resolution process under Part 4 of the Equal Pay Act 1972; or
            2. the failure was a breach of section 59B or section 59C.
              Notes
              • Section 4A: inserted, on , by section 6 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).
              • Section 4A(b): replaced, on , by section 33 of the Equal Pay Amendment Act 2020 (2020 No 45).