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Employment Relations Act 2000

Continuity of employment if employees' work affected by restructuring - Other employees

69OI: Interpretation

You could also call this:

“This section explains important words and ideas about keeping your job when your work changes.”

In this part of the law, you’ll learn about some important words and what they mean when a business is changing how it works. This is called ‘restructuring’.

An ‘employee’ in this case is someone who isn’t covered by Schedule 1A of the law.

An ‘employee protection provision’ is a rule that helps keep employees safe when a business is changing. It tells the employer what they need to do when talking to a new employer about the employees. This includes discussing if employees will keep their jobs and what will happen if they don’t.

A ‘new employer’ is the person or company taking over the business or part of it.

‘Restructuring’ means when a business hires another company to do some of its work, or when it sells or transfers part or all of the business to someone else. It doesn’t include things like the business bringing work back in-house, changing contractors, selling shares in the company, or changes that happen when a company goes bankrupt.

You’re an ‘affected employee’ if, because of restructuring, your employer doesn’t need you to do your job anymore, but someone else is doing the same kind of work.

If you see any words in this part of the law that aren’t explained here, you can look at subpart 1 to find out what they mean.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM59689.

Topics:
Work and jobs > Worker rights
Business > Industry rules
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69OH: Object of this subpart, or

“This part of the law aims to protect workers when their job changes to a new company by making sure their old boss talks to the new one about keeping them employed.”

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69OJ: Collective agreements and individual employment agreements must contain employee protection provision, or

“Rules say job contracts must include ways to protect workers if their work changes”

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

69OIInterpretation

  1. In this subpart, unless the context otherwise requires,—

    employee means an employee to whom Schedule 1A does not apply

      employee protection provision means a provision—

      1. the purpose of which is to provide protection for the employment of employees affected by a restructuring; and
        1. that includes—
          1. a process that the employer must follow in negotiating with a new employer about the restructuring to the extent that it relates to affected employees; and
            1. the matters relating to the affected employees' employment that the employer will negotiate with the new employer, including whether the affected employees will transfer to the new employer on the same terms and conditions of employment; and
              1. the process to be followed at the time of the restructuring to determine what entitlements, if any, are available for employees who do not transfer to the new employer

              new employer, in relation to a restructuring, means,—

              1. in the case of a contracting out, person B in the definition of that term; or
                1. in the case of a sale or transfer of a business, the person to whom the business is sold or transferred

                  restructuring—

                  1. means—
                    1. contracting out; or
                      1. selling or transferring the employer's business (or part of it) to another person; but
                      2. to avoid doubt, does not include—
                        1. contracting in; or
                          1. subsequent contracting; or
                            1. in the case of an employer that is a company, the sale or transfer of any or all of the shares in the company; or
                              1. any contract, arrangement, sale, or transfer entered into, made, or concluded while the employer is adjudged bankrupt or in receivership or liquidation.

                            2. For the purposes of this subpart, an employee is an affected employee if,—

                            3. as a result of a restructuring, the employee is, or will be, no longer required by his or her employer to perform the work performed by the employee; and
                              1. the type of work performed by the employee (or work that is substantially similar) is, or is to be, performed by or on behalf of another person.

                                1. Any term or expression defined in subpart 1 and used but not defined in this subpart has the same meaning as in subpart 1.

                                Notes
                                • Section 69OI: inserted, on , by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).