Employment Relations Act 2000

Transitional provisions

Schedule 1B: Code of good faith for public health sector

You could also call this:

“Guidelines for fair practices in public health employment”

This code applies to various parties in the public health sector, including Health New Zealand, its employees, unions, and other employers providing services to Health New Zealand or the New Zealand Blood and Organ Service. It aims to promote productive employment relationships and ensure high-quality public health services.

The code outlines general requirements for constructive engagement, mutual obligations during collective bargaining, and provisions for patient safety during industrial action. It also covers outsourcing of services and changes in service providers, ensuring employees maintain their terms and conditions of employment.

The code recognises employees’ right to make public comments on matters within their expertise, while respecting patient confidentiality. It also sets out procedures for addressing breaches of good faith. The code applies to current and future collective agreements and bargaining processes, even if they began before the code’s commencement.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM61726.

Topics:
Work and jobs > Worker rights
Health and wellbeing > Healthcare services
Government and voting > Government departments

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1BCode of good faith for public health sector

1Application

  1. This code applies to the following parties to an employment relationship in the public health sector:

  2. Health New Zealand:
    1. employees of Health New Zealand:
      1. unions whose members are employees of Health New Zealand:
        1. other employers to the extent that they provide services to Health New Zealand or the New Zealand Blood and Organ Service:
          1. employees of the employers referred to in paragraph (d) to the extent that they are engaged in providing services to Health New Zealand or the New Zealand Blood and Organ Service:
            1. the New Zealand Blood and Organ Service:
              1. employees of the New Zealand Blood and Organ Service:
                1. unions whose members are employees of the New Zealand Blood and Organ Service.
                  1. However, to avoid doubt, subclause (1)(d) and (e) applies in relation to the provision of services only if the services are provided to Health New Zealand or the New Zealand Blood and Organ Service in its role as a provider of services.

                  2. Before Health New Zealand or the New Zealand Blood and Organ Service enters into an agreement or arrangement with another employer for the provision of services to it, it must notify the employer that this code will apply to the employer in relation to the provision of those services.

                  3. However, failure to comply with subclause (3) does not affect the validity of an agreement or arrangement referred to in that subclause.

                  Notes
                  • Schedule 1B clause 1(1): replaced, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).
                  • Schedule 1B clause 1(1)(a): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
                  • Schedule 1B clause 1(1)(b): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
                  • Schedule 1B clause 1(1)(c): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
                  • Schedule 1B clause 1(1)(d): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
                  • Schedule 1B clause 1(1)(e): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
                  • Schedule 1B clause 1(2): replaced, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).
                  • Schedule 1B clause 1(2): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
                  • Schedule 1B clause 1(3): replaced, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).
                  • Schedule 1B clause 1(3): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).

                  2Purpose

                  1. The purpose of this code is—

                  2. to promote productive employment relationships in the public health sector:
                    1. to require the parties to make or continue a commitment—
                      1. to develop, maintain, and provide high quality public health services; and
                        1. to the safety of patients; and
                          1. to engage constructively and participate fully and effectively in all aspects of their employment relationships:
                          2. to recognise the importance of—
                            1. collective arrangements; and
                              1. the role of unions in the public health sector.

                              3Interpretation

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

                                good employer has the same meaning as in section 118 of the Crown Entities Act 2004

                                  health professional means—

                                  1. an employee who provides services to patients as a health practitioner (as defined in section 5 of the Health Practitioners Competence Assurance Act 2003); and
                                    1. any other employee who works in a recognised clinical discipline providing services for the purpose of assessing, improving, protecting, or managing the physical or mental health of individuals or groups of individuals

                                      industrial action means a strike or a lockout

                                        life preserving services means—

                                        1. crisis intervention for the preservation of life:
                                          1. care required for therapeutic services without which life would be jeopardised:
                                            1. urgent diagnostic procedures required to obtain information on potentially life-threatening conditions:
                                              1. crisis intervention for the prevention of permanent disability:
                                                1. care required for therapeutic services without which permanent disability would occur:
                                                  1. urgent diagnostic procedures required to obtain information on conditions that could potentially lead to permanent disability

                                                    services

                                                    1. has the same meaning as in section 4 of the Pae Ora (Healthy Futures) Act 2022; and
                                                      1. to avoid doubt,—
                                                        1. includes cleaning services, food catering services, laundry services, and orderly services; but
                                                          1. does not include building construction services.

                                                        Notes
                                                        • Schedule 1B clause 3 good employer: amended, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).
                                                        • Schedule 1B clause 3 life preserving services paragraph (d): added, on , by clause 4 of the Employment Relations (Code of Good Faith for Public Health Sector) Order 2006 (SR 2006/395).
                                                        • Schedule 1B clause 3 life preserving services paragraph (e): added, on , by clause 4 of the Employment Relations (Code of Good Faith for Public Health Sector) Order 2006 (SR 2006/395).
                                                        • Schedule 1B clause 3 life preserving services paragraph (f): added, on , by clause 4 of the Employment Relations (Code of Good Faith for Public Health Sector) Order 2006 (SR 2006/395).
                                                        • Schedule 1B clause 3 services paragraph (a): replaced, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).

                                                        4General requirements

                                                        1. In all aspects of their employment relationship, the parties must—

                                                        2. engage constructively; and
                                                          1. participate fully and effectively.
                                                            1. In their employment relationship, the parties must—

                                                            2. behave openly and with courtesy and respect towards each other; and
                                                              1. create and maintain open, effective, and clear lines of communication, including providing information in a timely manner; and
                                                                1. recognise the role of health professionals as advocates for patients; and
                                                                  1. make time to meet as and when required—
                                                                    1. to address not only the industrial issues between the parties but also issues facing the public health sector, the employer, and the employees; and
                                                                      1. to search for solutions that will result in productive employment relationships and the enhanced delivery of services; and
                                                                        1. to ensure that any change is managed effectively; and
                                                                        2. recognise the time and resource constraints that may affect their ability to participate fully, and make allowances for those constraints.
                                                                          1. To enable employees and their unions to comply with subclause (1), employers must ensure that appropriate steps are taken in their workplaces to encourage, enable, and facilitate employee and union involvement.

                                                                          2. The parties must use their best endeavours to resolve, in a constructive manner, any differences between them.

                                                                          3. Subclauses (2) to (4) do not limit subclause (1).

                                                                          5Obligation to be good employer

                                                                          1. Every employer must be a good employer.

                                                                          6Collective bargaining and collective agreements

                                                                          1. The parties must support collective bargaining, including multi-employer collective agreements, where it is practical and reasonable to do so.

                                                                          2. The parties must, as far as practical and reasonable, support the definition of coverage that best recognises the parties' commitment to collective employment arrangements.

                                                                          7Health sector principles

                                                                          1. The parties must recognise and support the health sector principles in section 7(1) of the Pae Ora (Healthy Futures) Act 2022.

                                                                          Notes
                                                                          • Schedule 1B clause 7: replaced, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).

                                                                          8Agreement on clinical expert or other suitable person

                                                                          1. As part of the arrangement required under section 32(1)(a), the parties must make every endeavour to agree on a clinical expert or other suitable person for the purposes of clause 13(1).

                                                                          9Specific things employers must not do during collective bargaining

                                                                          1. During collective bargaining employers must not—

                                                                          2. communicate directly with union members in relation to the collective bargaining; or
                                                                            1. negotiate with employees who are not union members with a view to undermining or influencing the collective bargaining; or
                                                                              1. attempt to discourage employees from joining or remaining with the union; or
                                                                                1. contract out services with a view to undermining or influencing the collective bargaining; or
                                                                                  1. terminate or fail to renew a contract with another employer who is providing public health services through its employees, with a view to undermining or influencing any collective bargaining between the other employer and its employees.

                                                                                    10Mutual obligations

                                                                                    1. During collective bargaining each party must—

                                                                                    2. give thorough and reasonable consideration to the other's proposals; and
                                                                                      1. not act in a manner that undermines the other or the authority of the other; and
                                                                                        1. not deliberately attempt to provoke a breakdown in the bargaining; and
                                                                                          1. where appropriate, consider ways in which they may take into account tikanga Maori (Maori customary values and practices) in the bargaining.
                                                                                            1. If agreement cannot be reached or the collective bargaining is in difficulty, the parties must give favourable consideration to attending mediation without delay, and must consider third party decision-making.

                                                                                            2. The parties must recognise that collective bargaining and collective agreements need to—

                                                                                            3. provide for the opportunity for participation of union officials, delegates, and members in decision-making where those decisions may have an impact on the work or working environment of those members; and
                                                                                              1. provide for the release of employees to participate in decision-making where appropriate, acknowledging the key role of union delegates in the collective representation of union members; and
                                                                                                1. provide for union delegates to carry out their roles, including the time needed for communication and consultation with members, and for union delegate education.

                                                                                                  11General obligation for employers to provide for patient safety during industrial action

                                                                                                  1. During industrial action, employers must provide for patient safety by ensuring that life preserving services are available to prevent a serious threat to life or permanent disability.

                                                                                                  12Contingency plans

                                                                                                  1. As soon as notice of industrial action is received or given, an employer must develop (if it has not already done so) a contingency plan and take all reasonable and practicable steps to ensure that it can provide life preserving services if industrial action occurs.

                                                                                                  2. If an employer believes that it cannot arrange to deliver any life preserving service during industrial action without the assistance of members of the union, the employer must make a request to the union seeking the union's and its members' agreement to maintain or to assist in maintaining life preserving services.

                                                                                                  3. The request must include specific details about—

                                                                                                  4. the life preserving service the employer seeks assistance to maintain; and
                                                                                                    1. the employer's contingency plan relating to that life preserving service; and
                                                                                                      1. the support it requires from union members.
                                                                                                        1. A request must be made by the close of the day after the date of the notice of industrial action.

                                                                                                        2. As soon as practicable after the employer has made a request but not later than 4 days after the date of the notice of industrial action, the parties must meet and negotiate in good faith and make every reasonable effort to agree on—

                                                                                                        3. the extent of the life preserving service necessary to provide for patient safety during the industrial action; and
                                                                                                          1. the number of staff necessary to enable the employer to provide that life preserving service; and
                                                                                                            1. a protocol for the management of emergencies which require additional life preserving services.
                                                                                                              1. An agreement reached between the parties must be recorded in writing.

                                                                                                              13Adjudication

                                                                                                              1. If the parties cannot reach agreement under clause 12(5) they must, within 5 days after the date of the notice of industrial action, refer the matter for adjudication by a clinical expert or other suitable person as agreed under clause 8.

                                                                                                              2. The adjudicator must conduct the adjudication in a manner he or she considers appropriate and must—

                                                                                                              3. receive and consider representations from the parties; and
                                                                                                                1. in consultation with the parties, seek expert advice if the adjudicator considers that it is necessary to do so; and
                                                                                                                  1. attempt to resolve any differences between the parties to enable them to reach agreement and, if that is not possible, make a determination binding on the parties; and
                                                                                                                    1. provide a determination to the parties as soon as possible but not later than 7 days after the date of notice of industrial action.
                                                                                                                      1. The parties must use their best endeavours to give effect to the determination.

                                                                                                                      2. The parties must bear their own costs in relation to an adjudication.

                                                                                                                      14Recognition of employees' right to make public comments

                                                                                                                      1. Employers must respect and recognise the right of their employees to comment publicly and engage in public debate on matters within their expertise and experience as employees.

                                                                                                                      2. However, this clause applies subject to clauses 15 to 17.

                                                                                                                      15Employee must first raise matter with employer

                                                                                                                      1. Before an employee exercises the right specified in clause 14(1) in relation to the operations of his or her employer, the employee must first—

                                                                                                                      2. raise the matter with his or her employer; and
                                                                                                                        1. provide a reasonable time for his or her employer to respond.

                                                                                                                          16When employee may make public comments about employer's operations

                                                                                                                          1. If the employee is dissatisfied with his or her employer's response or there is no response from his or her employer, the employee may exercise the right specified in clause 14(1) if the employee makes it clear that he or she is—

                                                                                                                          2. speaking in a personal capacity; or
                                                                                                                            1. speaking on behalf of a union with its authority to do so.

                                                                                                                              17Confidentiality

                                                                                                                              1. When exercising the right specified in clause 14(1), an employee must not breach patient confidentiality or professional confidentiality.

                                                                                                                              18Rights of union not affected

                                                                                                                              1. To avoid doubt, clauses 14 to 16 do not prevent a union from making public comments or engaging in public debate on any matter relating to the public health sector.

                                                                                                                              19Outsourcing or direct provision of services

                                                                                                                              1. This clause applies if—

                                                                                                                              2. an employer is Health New Zealand or the New Zealand Blood and Organ Service; and
                                                                                                                                1. the employer obtains services from its employees; and
                                                                                                                                  1. the employer engages or arranges for another employer to provide some or all of those services—
                                                                                                                                    1. to the employer (outsourcing); or
                                                                                                                                      1. direct to patients (direct provision).
                                                                                                                                      2. The employees referred to in subclause (1)(b) who are affected by the outsourcing or direct provision are entitled to be employed by the other employer on the same terms and conditions as applied to the employees immediately before the outsourcing or direct provision took effect.

                                                                                                                                      Notes
                                                                                                                                      • Schedule 1B clause 19(1)(a): replaced, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).
                                                                                                                                      • Schedule 1B clause 19(1)(a): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).

                                                                                                                                      20Change in provider of outsourced services

                                                                                                                                      1. This clause applies if—

                                                                                                                                      2. Health New Zealand or the New Zealand Blood and Organ Service has outsourced (within the meaning of clause 19(1)(c)(i)) the provision of services to it by another employer; and
                                                                                                                                        1. the agreement or arrangement under which the other employer provides those services comes to an end; and
                                                                                                                                          1. Health New Zealand or the New Zealand Blood and Organ Service makes an agreement or arrangement with a new employer to provide some or all of those services to it.
                                                                                                                                            1. The employees of the employer referred to in subclause (1)(b) who are affected by the outsourcing are entitled to be employed by the other employer on the same terms and conditions as applied to the employees immediately before the agreement or arrangement referred to in subclause (1)(b) came to an end.

                                                                                                                                            Notes
                                                                                                                                            • Schedule 1B clause 20(1)(a): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
                                                                                                                                            • Schedule 1B clause 20(1)(a): amended, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).
                                                                                                                                            • Schedule 1B clause 20(1)(c): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).

                                                                                                                                            21Obligation to notify provisions of clauses 19 and 20

                                                                                                                                            1. Before Health New Zealand or the New Zealand Blood and Organ Service enters into an agreement or arrangement with a new employer to which clause 19 or clause 20 applies, it must notify the employer of the provisions of clause 19 or clause 20, whichever applies in the circumstances.

                                                                                                                                            2. However, failure to comply with subclause (1) does not affect the validity of an agreement or arrangement referred to in that subclause.

                                                                                                                                            3. This clause is in addition to clause 1(3).

                                                                                                                                            Notes
                                                                                                                                            • Schedule 1B clause 21(1): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
                                                                                                                                            • Schedule 1B clause 21(1): amended, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).

                                                                                                                                            22Notice of breach

                                                                                                                                            1. If a party believes that another party has breached the duty of good faith in section 4, it must bring this to the attention of the party in breach at an early stage.

                                                                                                                                            23Obligation of party in breach

                                                                                                                                            1. A party in breach must—

                                                                                                                                            2. if the breach can be made good, make good the breach by making every endeavour to restore the other party to the position the other party was in before the breach; or
                                                                                                                                              1. if the breach cannot be made good, provide an explanation to the other party.

                                                                                                                                                24Transitional

                                                                                                                                                1. This code does not apply to anything done or any matter arising before the commencement of the code.

                                                                                                                                                2. However, subclause (1) applies subject to subclauses (3) and (4).

                                                                                                                                                3. Subclause (1) does not prevent the code applying in relation to—

                                                                                                                                                4. a collective agreement entered into before the commencement of the code; or
                                                                                                                                                  1. bargaining for a collective agreement that began before the commencement of the code.
                                                                                                                                                    1. Clause 20 applies even though the agreement or arrangement referred to in clause 20(1)(b) was entered into before the commencement of the code.