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Unions

Entitlements

14 May 2025 (Last updated 5 Dec 2025)

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In terms of section 7 of the Employment Relations Act 2000, employees have the freedom to choose whether or not to form a union or be members of a union for the purpose of advancing their collective employment interests.

The Act further provides that no person may, in relation to employment issues, give any preference or apply any undue influence on another person because of the other person’s membership or non-membership of a union, as the case may be.

In this guide for employers, we discuss the role of unions, their scope, and limitations. Peninsula has worked with thousands of businesses in New Zealand, supporting them with employment relations and workplace health and safety. We provide customised, end-to-end solutions for your HR and H&S needs.

Please note that the information below is general and does not constitute as advice.

What is a union?

Broadly speaking, a union is an organisation that will aim to support employees (known as members) in their workplace by acting on their behalf collectively, and in the case of some employees individually.

Unions will be typically encountered when it comes to bargaining for collective employment agreements. However, employers may also engage with a union when employees seek the union’s help and advice on work-related issues. Members pay union fees in order to benefit from the services of the union.

A union can be formed when 15 people or more register as an incorporated society under the Incorporated Societies Act 1908 and then register as a union with the New Zealand Companies Office.

The key role of unions will primarily be the negotiation of collective employment agreements, but they also advocate more generally on behalf of employees.

Union membership

Employees are free to choose whether or not they join a union. An employer, its managers and supervisors, cannot disadvantage or threaten employees who join a union. Nor can they place pressure on an employee to refrain from joining a union. Employers certainly cannot place duress on an employee to leave their job based on their union membership.

Agreements or contracts that requires an employee to join a union or to refrain from joining a union are not permissible. Employees cannot be treated differently or discriminated against based on their union membership or union activities. For example, an employee’s role as a delegate or participant in a lawful strike cannot be used against them at any stage.

Likewise, just because an employee is not a union member, an agreement cannot give them any preference:

  • In obtaining employment or keeping their employment,
  • Relating to terms or conditions of employment, benefits, or opportunities for training, promotion or transfer.

Union activities

Employees cannot be unfairly discriminated against because they are involved in union activities. Union activities include:

  • Being an officer, management committee member, delegate, representative or official of a union
  • Being a collective bargaining negotiator or representative
  • Participating in a lawful strike
  • Being involved in forming a union
  • Submitting a personal grievance
  • Being involved in making or supporting a claim for some benefit of an employment agreement
  • Applying for or taking employment relations education leave

Union meetings

Each employee is entitled to attend at least two meetings (up to two hours each) every calendar year. If an employee would ordinarily be working during the time a union meeting is held, the employer is required to pay them their ordinary rate. On the other hand, if a meeting is held during business hours, but an employee would not normally be working, then the employer is not required to pay them for attending the meeting.

The union is required to give the employer 14 days’ notice of the union related meeting. The notice must advise the date, time and location of the meeting.

At the conclusion of the meeting, the union must provide the employer with a list of names of the attendees and the duration of the meeting.

Workplace access and consent

A union does not need to seek consent to enter a workplace where there is a collective agreement in force or where a collective agreement is being bargained for. The union may enter for the purposes of supporting their members collective interests in relation to their employment.

The union would however, need to seek consent from the employer to enter a workplace if a collective agreement is not in force. The employer cannot unreasonably deny such request for access and must respond to the union’s request within one working day. If the employer does not respond within two working days of the request for entry, then consent would be considered as having been obtained

A union representative wanting to enter a workplace, must do so in a reasonable manner and time and must comply with all health, safety and security procedures of the workplace.

Collective bargaining

Collective bargaining occurs where a union wishes to bring into force a new collective agreement or re-negotiate the terms of an existing collective agreement.

  • Collective bargaining generally occurs every 2-3 years.
  • An employer or union can initiate bargaining.
  • A union can initiate bargaining 60 days prior to the collective agreement expiring whereas an employer can initiate bargaining 40 days prior to a collective agreement expiring. (These timeframes vary if more than one union or more than one employer is involved).

30 Day rule

New employees that commence employment where there is a collective agreement in force will automatically be employed under the collective agreement for the first 30 days of employment. If the employee does not join the union within the 30 days, then the employer and employee are free to negotiate an individual employment agreement.

Create fair and safe workplaces with Peninsula

You need to know your duties and responsibilities as a business owner and employer in New Zealand. Peninsula has worked with thousands of businesses, guiding them in matters of complex employment relations and health and safety. Our customised services provide advice that will allow you to grow your business and create productive workplaces.

The presence of unions in your workplace can be a challenge to manage properly, but you should always act in good faith. For expert advice you can contact the Peninsula team 24/7.

This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

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Resignation

If you are a small business owner or employer, resignations are going to be a part of your business and life. Anytime an employee resigns, it is an important moment in the business as the resignation will kickstart a process including the notice period. Resignation is the termination of employment initiated by the employee. That is, the employee voluntarily ends employment and communicates that decision to the employer. When an employee resigns, they may have to give written notice via a letter (or email) to their employer. The employee will provide a period called the notice period to transfer their duties and responsibilities. The notice period acts as a safeguard and protection for the business and allows the employee to transition out of their role. The resignation process When an employee resigns, there are many things you need to do. The first step is for the employee to officially announce their resignation in writing. In this resignation letter, they will mention their date of resignation, their expected notice period, and their last day of employment. They will include details of any other projects or equipment they need to hand over. Ideally, the employee would have discussed all of this with you verbally or with the hiring manager. On or before the employee’s final date of employment, you can request the employee to: Return all property of the business (including keys, documents, information technology equipment, intellectual property). Remove hard copy and electronic personal and confidential files. Inform supervisor/s of any passwords/codes to access computer files. What are notice periods? The notice period: Starts the day after the employee gives their employer notice in writing via email or a letter that they want to end their employment. Ends on the last day of employment. Forming a part of the offboarding process, the notice period helps the employee and the company acclimatise to the resignation and shift in responsibilities. Notice periods can be tricky as their duration is not standardised across all roles. Having an offboarding or resignation policy in place can benefit you during such times. Notice required when resigning If an employee has resigned or been dismissed, they need to give notice. The required notice period will depend on their award, registered agreement, or contract. An employee can give more notice than what is outlined in the applicable award, registered agreement, or contract. If the employer does not want the employee to work the notice period or wishes to shorten it, they would need to agree with the employee to the shorter notice including waiving notice. If you are an employer, you cannot unilaterally substitute the proposed notice period by an employee for a shorter one, even if it’s according to the award or employment contract. Doing so constitutes the employer terminating the contract and therefore would have unfair dismissal risks attached. If the employer pays out the notice period, the employee’s employment ends on the date that payment is made. In that case, the employee doesn’t stay employed during the notice period (or continue to accrue entitlements, such as annual leave). If the employer doesn’t pay out any part of the notice period, the employee stays employed for the entire period. Employment can’t end on a date earlier than the day the notice is given. The notice period must be paid out before the termination is effective. An employee’s award, employment contract, enterprise agreement, or other registered agreement sets out: How much notice (if any) the employee has to give when they resign. When an employer can withhold money if the employee does not give the minimum notice period. Taking money out of an employee’s pay before it is paid to them is a deduction. An employer can only deduct money if: The employee agrees in writing and it’s principally for their benefit. It’s allowed by a law, a court order, or by the Fair Work Commission. It’s allowed under the employee’s award. It’s allowed under the employee’s registered agreement and the employee agrees to it. Most awards say that in certain circumstances an employer can deduct up to one week’s wages from an employee’s pay if they do not provide the minimum amount of notice. Where an award allows this, an employer can only deduct pay from an employee’s wages under the award, not from other entitlements. Although, you must follow the requirements in the industrial instrument, such as the employee must be over 18 years of age; and the employer may deduct from wages due to the employee under the relevant award that is no more than one week’s wages for the employee. Also, any deduction made must not be unreasonable in the circumstances. Final payments on resignation Final pay is what an employer owes an employee when their employment ends. An award, employment contract, enterprise agreement, or other registered agreements can specify when the final payment must be made. If it does not, the best practice is for an employee to be paid within 7 days of their employment ending, or on the next scheduled payday. An employee should get the following entitlements in their final payment: All outstanding wages for hours worked, including penalty rates and allowances Any accumulated annual leave and, if applicable; annual leave loading – i.e. if it would have been paid during employment. Accrued or pro-rata long service leave – depending on the relevant state or territory legislation. Sick or carer’s leave is generally unpaid when employment ends unless an award, contract, or registered agreement says otherwise. Updating employment records You should have a clear HR policy around resignation and dismissal. This policy should outline the process, next steps, and responsible parties. A key part of this process should involve having updated employment records. The employee’s resignation letter should be stored in the employee’s personnel file. As part of the record-keeping requirements under the Fair Work Act 2009, the file should contain details of the notice period, and in what circumstances the employee resigned. This file should remain private and confidential.  Generally, no one can access these records other than the employee, their employer, and relevant payroll staff. If requested by the employee, or the former employee to whom the record relates, or the Fair Work Ombudsman, employers must make copies of these records available. Manage resignation and notice periods Running a small business is no small task. You need to know latest rules and policies around staff management, performance, resignation, and dismissal. We have supported thousands of business owners with policies, resources, and tools for their business. Contact Peninsula today to learn more about resignation policies, entitlements, and calculating correct final payments.

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