The New Zealand Employment Contracts Act of 1991 is a piece of legislation that governs the relationship between employers and employees in New Zealand. It was introduced to promote flexibility, efficiency, and fairness in the employment sector, and to encourage economic growth in the country.
The act outlines the terms of employment contracts, including minimum wage rates, hours of work, leave entitlements, and termination procedures. It also gives employees the right to join a union and engage in collective bargaining with their employers.
One of the key features of the act is its emphasis on individual employment contracts. This means that each employee has their own unique contract, tailored to their specific role and needs. It allows for greater flexibility in the workplace, as employers can negotiate terms directly with their employees.
Another important aspect of the act is the provisions regarding collective bargaining. The act gives employees the right to join a union and negotiate with their employer for better pay and conditions. It also provides guidelines for how these negotiations should take place.
Perhaps the biggest change brought about by the Employment Contracts Act was the reduction of job security. Prior to the act, it was difficult for employers to terminate employees, even if they were underperforming or engaging in misconduct. However, the act introduced the concept of “employment at will,” which means that employers can terminate employees for any reason, provided they follow the correct procedures.
Overall, the Employment Contracts Act has had a significant impact on the New Zealand employment landscape. While it has been criticized for its impact on job security, it has also led to greater flexibility and efficiency in the workplace. As such, it remains an important piece of legislation for both employers and employees in New Zealand.
