Employment relations legislation
The Employment Relations Act 2000 states that parties to an employment relationship are under a duty of good faith.
Good faith applies in all aspects of an employment relationship – including bargaining, consultation, discipline, proposals of changes to employment, redundancy, dismissal and employers’ and employees’ obligations to one another.
What is good faith?
In particular, good faith means:
- not to do anything that is likely to mislead or deceive
- mutual obligations of trust and confidence, i.e. acting openly, honestly and without hidden motives
- being active and constructive in establishing and maintaining a productive relationship which is responsive and communicative, including being cooperative, respectful, raising issues in a timely manner and responsive to issues.
Good faith is often a question of circumstances, and the intentions and actions of the parties.
There are penalties for failing to comply with the duty of good faith.
Holidays Act 2003, section 4 – Legislation website
RHolidays Act 2003, section 4A – Legislation website
Updated: September 2015
