Call us 0800 675 700

Good Faith.

Good faith.

While it is often thought of in terms of union negotiations, good faith extends to the way in which employers and employees deal with each other. There is an obligation on both you and your employees to make every act an act of good faith.

What is good faith?

There are three elements which collectively make up good faith:

• neither party acting in a misleading or deceptive way
• both you and your employees are to be responsive and continue communicating
• If you want to make a decision which will impact an employee, you must present enough information for the employee to understand and be able to comment, prior to the decision being made

It is best for you and your employees to think of good faith, as more of a broad concept, rather than the three statements above alone. As such, it can help to think of an act of good faith to include things like being fully honest, raising issues in a fair and timely manner, treating the other party with respect, and giving the other party  information which may be referred to in any future discussions. Again, this is not a definitive list, but it is the concept of ‘good faith’ that should be followed as much as possible.

Examples of how to act in good faith.

Given how important it is for employers and employees, as well as unions, to act in good faith, for reference some examples can include:

• when an employee is under investigation, do not present false evidence
• independent investigations should be completed by someone that is truly independent
• where a union decides to call off a strike, the decision should be communicated to the employer as soon as possible and not as late as possible
• if an employee makes a rash decision to resign in the heat of the moment, this should be clarified to be sure
• where an employee has been seen at a sporting event, or another public outing, when on sick leave there should be a valid explanation offered
• any confusing terms in an employment agreement should be clarified as a matter of urgency

Consequences of not acting in good faith.

If an employee makes a claim of personal grievance, alleging that you have breached good faith, the Employment Relations Authority is the responsible agency which will investigate. If the employee, or their representative, successfully argues that you have breach good faith, the Employment Relations Authority may issue a penalty.

For advice on good faith, or support following allegations of a breach, call Employsure on 0800 675 700 day or night

Stay Informed

Tips from advisers Industry insights ERA & HSW updates Seminar Invitations
  • This field is for validation purposes and should be left unchanged.

Categories

About Employsure

Employsure helping 12,000 businesses to succeed

About Employsure

Let’s connect

Employsure

Employsure

Employsure is New Zealand's leading workplace relations specialist, working directly alongside employers to set the solid foundations for...
Auckland 201- 500 employees

Questions? Call us on 0800 675 700 to speak with a specialist

Let's chat!

Don't ask yourself about
workplace relations, ask us!

  • *By submitting your details, you may receive occasional updates from us as set up in our Privacy Policy.