On 1 December 2004 amendments to the Employment Relations Act came into force.
The amendments aim to better support the key objectives of collective bargaining and good faith, and provide effective processes for resolving relationship problems.
It also protects employees, by including a requirement for an employee protection provision, if their job is affected by the sale or transfer of their employer's business or if their work is contracted out.
The four main areas are:
| Is actively promoted rather than simply permitted. Parties negotiating for a collective agreement must now conclude one, unless there is a genuine reason, based on reasonable grounds, not to.
The Employment Authority can now facilitate collective bargaining in specified circumstances.
Bargaining fee clauses are deemed to apply unless the employee notifies the employer in writing that the employee does not agree to pay it. Bargaining fees are to be deducted from wages and paid to the union concerned.
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| The meaning has been widened and there is now a legislative requirement for good faith behaviour. There are now penalties for failure to comply.
Employers and employees need to be active and constructive in establishing and maintaining a productive employment relationship. This includes being responsive and communicative.
There is a statutory requirement on an employer to consider any issues that employees (and prospective employees) raise in relation to bargaining for an individual agreement or any variation of one, and to respond to them. |
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a) |
Providing dispute resolution services through the Department of Labour to independent contract situations.
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b) |
Procedures that allow mediators to address any party to a matter without any representative of that party being present and to express their views to one or other party with or without their representative being present, on the substance and process of the matter.
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c) |
Allowing employers to pay by way of instalment, if financial circumstances require it.
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d) |
Ensuring that any payment goes straight to the other party and not to their representative, unless their representative is a solicitor.
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| From 1 December 2004 all new employment agreements must contain an 'employee protection provision' which meets the requirements of the Act.
For existing agreements these new provisions need to be included at the earliest of: |
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- 12 months after 1 December 2004;
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- When the agreement is next amended;
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- If the employer's business is restructured, before that restructuring occurs.
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This clause is not required if the employees fall within the definition of 'vulnerable employees', namely those providing cleaning, food catering, caretaking or laundry services in specified sectors (ie school, hospitals or residential care sectors, airports, public service). These types of employees have special protections set out in the Act in the event of a restructuring.
If you have any questions we are happy to provide you with further information on the amendments to the Employment Relations Act and how they may affect you.
May 2005
All information in this article is to the best of the author's knowledge true and accurate. No liability is assumed by the author for any losses suffered by any person relying directly or indirectly upon this material. It is recommended that you should consult a senior representative of Rotherhams before acting upon any information provided in this article 
