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Employment Relations Act 2000

Collective bargaining - Collective agreements

54: Form and content of collective agreement

You could also call this:

“The rules for writing down and agreeing on how workers and bosses work together”

A collective agreement is a written document that unions and employers sign together. For it to work, both the union and the employer must sign it.

You can put many different things in a collective agreement, but there are some things that must be included:

  1. A coverage clause that says who the agreement applies to.
  2. The wages or salary that will be paid to the workers covered by the agreement.
  3. An easy-to-understand explanation of how to solve problems at work. This must mention that you have 12 months to raise a personal grievance about sexual harassment, and 90 days for other personal grievances.
  4. A section that explains how to change the agreement.
  5. The date when the agreement will end, or what needs to happen for it to end.

The agreement can’t include anything that breaks the law or goes against the Employment Relations Act.

When it comes to wages and salaries, the agreement needs to show:

  • The pay rates for different jobs or types of workers
  • Or the minimum pay rates for different jobs or types of workers
  • Or how to calculate these pay rates

It also needs to say how workers’ pay might go up while the agreement is active.

Remember, if you have any problems at work, the agreement should explain how to get help to solve them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM59115.

Topics:
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53: Continuation of collective agreement after specified expiry date, or

“When a union or employer starts talks for a new agreement before the old one ends, the old agreement keeps working for up to a year while they talk.”

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55: Deduction of union fees, or

“How money for joining a workers' group can be taken out of your pay if you say it's okay”

Part 5 Collective bargaining
Collective agreements

54Form and content of collective agreement

  1. A collective agreement has no effect unless—

  2. it is in writing; and
    1. it is signed by each union and employer that is a party to the agreement.

      1. A collective agreement may contain such provisions as the parties to the agreement mutually agree on.

      2. However, a collective agreement—

      3. must contain—
        1. a coverage clause; and
          1. the rates of wages or salary payable to employees bound by the agreement; and
              1. a plain language explanation of the services available for the resolution of employment relationship problems, including a reference to—
                1. the 12-month period within which a personal grievance must be raised under section 114(1) if the grievance is in respect of sexual harassment under section 103(1)(d); and
                  1. the 90-day period within which any other personal grievance must be raised under section 114(1); and
                  2. a clause providing how the agreement can be varied; and
                    1. the date on which the agreement expires or an event on the occurrence of which the agreement is to expire; and
                    2. must not contain anything—
                      1. contrary to law; or
                        1. inconsistent with this Act.

                        2. For the purposes of subsection (3)(a)(ii), a collective agreement contains the rates of wages or salary payable to employees bound by the agreement if it—

                        3. contains, in respect of the employees bound by the collective agreement (whether by reference to the work or types of work done by the employees or by reference to named employees or types of employees),—
                          1. the rates of wages or salary payable for certain work or types of work or to certain employees or types of employees; or
                            1. the minimum rates of wages or salary payable for certain work or types of work or to certain employees or types of employees; or
                              1. 1 or more methods of calculating the rates or minimum rates of wages or salary payable for certain work or types of work or to certain employees or types of employees; and
                              2. indicates how the rate of wages or salary payable to an employee bound by the agreement may increase during the term of the agreement.

                                Notes
                                • Section 54(3)(a)(ii): inserted, on , by section 19(1) of the Employment Relations Amendment Act 2018 (2018 No 53).
                                • Section 54(3)(a)(ii): repealed, on , by section 15 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).
                                • Section 54(3)(a)(iii): replaced, on , by section 4 of the Employment Relations (Extended Time for Personal Grievance for Sexual Harassment) Amendment Act 2023 (2023 No 28).
                                • Section 54(4): inserted, on , by section 19(2) of the Employment Relations Amendment Act 2018 (2018 No 53).