Posted on: Apr 26, 2017
The Employment Relations (Allowing Higher Earners to Contract Out of Personal Grievance Provisions) Amendment Bill passed its first reading on 22 March 2017.
The bill seeks to amend the Employment Relations Act 2000 by allowing employees with an annual gross salary over $150,000 to contract out of the personal grievance provisions. The Bill is intended to remove the threat of personal grievance for the employer in exchange for agreed terms with the employer.
The Bill provides in detail for the making of the agreement, which must be in writing, the employee must have the benefit of independent legal advice and the lawyer who gives that advice must certify that he or she has given the employee advice explaining the effect and implications of the term before the employee signed the agreement. That lawyer must witness the employee’s signature (Clause 5, inserting New Section 102A into the Act).
You can view this Bill by clicking here. Submissions are open until 5 May 2017, submissions can be made online via the New Zealand Parliment website. We will keep you updated on any progress made with this interesting Bill.
This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.