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How could Fair Pay Agreements impact your organisation?

With the Fair Pay Agreement system commencing this month, get the lowdown on how this new legislation could impact your business or workplace now. 

Key points: 

  • Fair Pay Agreements (FPAs) will set minimum terms across industries and occupations. A FPA must include what work is covered by the FPA, standard hours, minimum pay rates, training and development, and leave entitlements.  

  • A union will start the process for a proposed Fair Pay Agreement (initiation).  

  • FPA bargaining can happen where at least 1,000 employees or 10% of employees within the occupation/ industry want an FPA, or there is a public interest in an FPA for that industry/ occupation (e.g., employees earning low wages or working unsocial hours) 

  • FPAs will bind all employers and employees in the occupation/ industry, whether or not they want to be bound by the FPA. It will be illegal to contract out of an FPA, even if an employer and an employee both want to. 

  • The Employment Relations Authority may decide the terms of an FPA if the relevant bargaining sides are unable to come to an overall agreement.  

The soon to be implemented system includes support for bargaining parties to help them navigate the bargaining process and reach an outcome, as well as processes to ensure compliance.  

More information on FPA