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Employment Relations Act 2000

Additional provisions relating to enforcement of employment standards - Insurance against pecuniary penalties unlawful and of no effect

142V: Insurance against pecuniary penalties unlawful

You could also call this:

"You can't use insurance to pay fines for breaking employment laws."

If you have insurance that covers you for paying a fine under the Employment Relations Act 2000, that part of the insurance policy is not valid. You cannot use that insurance to pay a fine, and no court can help you with that insurance policy, even if you use sections 75 to 82 of the Contract and Commercial Law Act 2017.

You are not allowed to buy insurance that covers you for paying a fine under this Act, or offer to buy it. You are also not allowed to pay someone else's fine, or receive money from someone else to pay your own fine.

If someone tries to insure you against paying a fine under this Act, or if you try to insure someone else, that is not allowed, and you cannot agree to it or pay for it.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6803097.

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Part 9AAdditional provisions relating to enforcement of employment standards
Insurance against pecuniary penalties unlawful and of no effect

142VInsurance against pecuniary penalties unlawful

  1. To the extent that an insurance policy or a contract of insurance indemnifies or purports to indemnify a person for the person's liability to pay a pecuniary penalty under this Act,—

  2. the policy or contract is of no effect; and
    1. no court or tribunal has jurisdiction to grant relief in respect of the policy or contract, whether under sections 75 to 82 of the Contract and Commercial Law Act 2017 or otherwise.

      1. A person must not—

      2. enter into, or offer to enter into, a policy or contract described in subsection (1); or
        1. indemnify, or offer to indemnify, another person for the other person's liability to pay a pecuniary penalty under this Act; or
          1. be indemnified, or agree to be indemnified, by another person for that person's liability to pay a pecuniary penalty under this Act; or
            1. pay to another person, or receive from another person, an indemnity for a pecuniary penalty under this Act.

              Notes
              • Section 142V: inserted, on , by section 19 of the Employment Relations Amendment Act 2016 (2016 No 9).
              • Section 142V(1)(b): amended, on , by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).