Equal Pay Act 1972

Employee Rights
 
  • To have, whether a male or female employee, the same conditions of work, fringe benefits and opportunities for training, promotion and transfer as an employee of the opposite sex engaged in the same work who has the same or substantially similar qualifications and is employed in the same or substantially similar circumstances.
  • To ask the Employment Relations Authority to decide any question concerning the implementation of equal pay.
  • To recover in the Employment Relations Authority as a wage arrears claim, any remuneration over and above the amount fixed in the relevant employment contract, on the ground that it is payable under the Equal Pay Act. Proceedings must be commenced within six years of the amount claimed becoming payable. Claims may be taken by the employee, by an employee representative (including a union) or by a Labour Inspector.
  • To have a 12 month period of protected employment after making an equal pay claim, or claiming on behalf of some other employee. During this period an employer dismissing an employee or prejudicially altering his or her position in the organisation commits an offence unless it can be proved that what was done was for some reason unconnected with the equal pay claim. 

Employer Obligation
 

To ensure rates of pay do not vary according to the sex of the employee. If there is some variation, to remedy the situation by taking into account the following factors:

  • The extent to which the work/class of work calls for the same, or substantially similar, degrees of skill, effort and responsibility and is performed under the same or substantially similar conditions as the work performed by male employees (where the work is not exclusively or predominantly performed by females), or
  • The rate that would be paid to male employees with the same or substantially similar skills, responsibility and service performing the work under the same or substantially similar conditions, with the same or substantially similar degrees of effort (where the work is exclusively or predominantly performed by females).

Note: Male and female employees must receive the same minimum rate of pay for doing the same work although performance/experience-based differences between individuals are permissible.

Pay Equity Claims
 

The Equal Pay Amendment Act 2020 amends the Equal Pay Act 1972 by introducing a new process for employees and unions to raise, progress and resolve pay equity claims, aligned with New Zealand’s existing bargaining framework (under the Employment Relations Act 2000) and use existing resources such as bargaining in good faith, facilitation and mediation to address these claims, with escalation for decision in the Employment Relations Authority or Court to be used as a last resort. 

Dispute Resolution Process Overview

Where the circumstances giving rise to an unlawful discrimination claim, an equal pay claim, or a pay equity claim by an employee are such that the employee would also be entitled to make a complaint under the Human Rights Act 1993, or pursue a personal grievance under the Employment Relations Act 2000, the employee may make a claim under only one of the following: 

  • Equal Pay Amendment Act
  • Human Rights Act 1993; or
  • Employment Relations Act 2000.

The dispute resolution process is as follows:

  • An employee (or group of employees who perform the same or similar work) and/or union submits an arguable written pay equity claim to their employer at any time. A pay equity claim will be arguable only if:
     

           - The claim relates to work that is or was predominantly performed by female employees; and 

           - it is arguable that the work is currently undervalued, or has been historically undervalued

  • Within 45 working days of receiving the claim the employer must respond to the claim confirming whether the employer agrees there is an arguable pay equity issue, or whether the employer considers the claim is inarguable and provide the necessary supporting evidence of their decision.

  • The employee is entitled to request further information about the employer’s decision and refer the claim to mediation services for resolution. 

  • The parties may also refer the claim for facilitation or determination in the Employment Relations Authority, however that should be done as a last resort, given the focus on negotiation, collaboration and good faith.

There are processes for employers to acknowledge receipt of a claim, seek consolidation of multiple claims, or opt out of the process.

Affected employees are automatically covered by union claims.  However, unions may not demand union fees from non-members and employees may opt out of the process.

To access the complete Act click here

To access the Equal Pay Amendment Act 2020 click here

 

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