Plain language law

New Zealand law explained for everyone

Employment Relations Act 2000

Individual employees' terms and conditions of employment - Unfair bargaining

68: Unfair bargaining for individual employment agreements

You could also call this:

“This law protects workers from being tricked or pressured into unfair work agreements when they might not fully understand what they're agreeing to.”

You might experience unfair bargaining when making an individual employment agreement if certain things happen. This can occur if you have trouble understanding the agreement because of your age, sickness, disability, or emotional distress. It can also happen if you rely on the other person’s advice, if they pressure you into agreeing, or if they don’t give you the right information or chance to get advice when they should have.

The other person (or someone working for them) is being unfair if they know about your situation or should have known based on what they’ve seen or heard. They can’t take advantage of you if you’re in a vulnerable position.

An individual employment agreement includes any part of the agreement, not just the whole thing. You usually can’t challenge an agreement just because you think it’s unfair, unless it meets the conditions described here.

If you want to know more about the information and advice you should have received, you can check out section 63A.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM59166.

Topics:
Work and jobs > Worker rights
Rights and equality > Anti-discrimination
Previous

67H: Secondary employment provisions, or

“Rules about when your boss can stop you from working other jobs”

Next

69: Remedies for unfair bargaining, or

“What the court can do if someone wasn't fair when making a work agreement”

Part 6 Individual employees' terms and conditions of employment
Unfair bargaining

68Unfair bargaining for individual employment agreements

  1. Bargaining for an individual employment agreement is unfair if—

  2. 1 or more of paragraphs (a) to (d) of subsection (2) apply to a party to the agreement (person A); and
    1. the other party to the agreement (person B) or another person who is acting on person B's behalf—
      1. knows of the circumstances described in the paragraph or paragraphs that apply to person A; or
        1. ought to know of the circumstances in the paragraph or paragraphs that apply to person A because person B or the other person is aware of facts or other circumstances from which it can be reasonably inferred that the paragraph or paragraphs apply to person A.

        2. The circumstances are that person A, at the time of bargaining for or entering into the agreement,—

        3. is unable to understand adequately the provisions or implications of the agreement 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 person B or a person acting on person B's behalf; or
                    1. is induced to enter into the agreement by oppressive means, undue influence, or duress; or
                      1. where section 63A applied, did not have the information or the opportunity to seek advice as required by that section.

                        1. In this section, individual employment agreement includes a term or condition of an individual employment agreement.

                        2. Except as provided in this section, a party to an individual employment agreement must not challenge or question the agreement on the ground that it is unfair or unconscionable.

                        Notes
                        • Section 68(2)(d): amended, on , by section 29 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).