Fair Pay Agreement Negotiating Given the Go Ahead


The Fair Pay Agreement legislation has, with Unite Union, given the go-ahead to initiate bargaining for a hospitality industry-specific Fair Pay Agreement (Hospo FPA).

This means that hospitality workers will be able to, for the first time, collectively negotiate the minimum terms and conditions for the entire sector.

The new agreement will have to specify minimum wage rates, including overtime rates and penalty rates, and increases to those rates during the agreement. Standard hours for paid work will also be discussed, along with training, development, and how much leave will be available.

Bargaining parties will also negotiate health and safety requirements, flexible working arrangements, and redundancy.

Hospitality business owners will have some important responsibilities in regard to this legislation. 

Employers are required to distribute union information to employees, which applies to union and non-union employees. 

The Fair Pay Agreement information sheet and contact details document must also be shared with employees. If employees do not want their details shared with the union, they must opt-out by completing a portion of the form and returning it to their employer. This does not exempt them from the Fair Pay Agreement.

Employee details must then be sent to the union between the 11th and 20th of July, 2023, as required by the Act.

Non-compliance with the requirements could lead to penalties under the Act. The Restaurant Association of New Zealand has recommended taking action within the timeframe required to ensure being in line with the new legislation.

The Restaurant Association of New Zealand is also holding a live session on this topic at the Fine Food Trade show on Tuesday, 27th of June.