Plain language law

New Zealand law explained for everyone

69LC: Implied warranty by employer of transferring employees
or “The old boss promises not to make bad changes to workers' jobs before they move to a new boss.”

You could also call this:

“When a worker changes jobs, their new boss has to follow the old work agreement, but only for that worker.”

If you choose to transfer to a new employer, and you’re part of a union with a collective agreement, this law affects you. Even if your new employer isn’t part of your union’s collective agreement, they become part of it just for you. This happens from the day you start working for them. It only applies to you and doesn’t affect other workers. This rule helps make sure you keep the benefits of your collective agreement when you change jobs.

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Next up: 69N: Employee who transfers may bargain for redundancy entitlements with new employer

or “If you choose to work for a new company, you can ask for money if they want to let you go because of the change.”

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Employment Relations Act 2000
Continuity of employment if employees' work affected by restructuring
69M: New employer becomes party to collective agreement that binds employee electing to transfer

Part 6A Continuity of employment if employees' work affected by restructuring
Specified categories of employees

69MNew employer becomes party to collective agreement that binds employee electing to transfer

This section applies if—
an employee who elects to transfer to a new employer is a member of a union and bound by a collective agreement; and
the new employer is not a party to the collective agreement that the union is a party to.

On and from the date on which the employee becomes an employee of the new employer, the new employer becomes a party to the collective agreement, but only in relation to, and for the purposes of, that employee.

Notes