Negotiated Goodbyes: Bill proposes to formalise pre-termination conversations
The Select Committee has approved but largely rewritten the Employment Relations (Termination of Employment by Agreement) Amendment Bill. This sets out a process for employers to raise and discuss the possibility of an agreed exit with an employee without exposure to a personal grievance claim. The Select Committee’s amendments to the Bill are aimed at improving workability and introducing additional safeguards, primarily for employees.
Here’s what you need to know about the Bill:
- It will introduce a protected process to allow employers and employees to enter into negotiations to mutually agree to end their employment relationship.
- The protections include the employee being informed of their right to representation and legal advice, and being able to decline to discuss an exit.
- An employee will not be able to raise a personal grievance because they were asked to enter “pre-termination negotiations” and may only do so after a settlement if there was misleading or deceptive conduct by the employer.
- An employer cannot make a request to an employee to enter into “pre-termination negotiations” more than once in any 6-month period.
- The Employment Relations Authority can cancel an agreed exit if the negotiations were unfair or the employer did not follow the correct process.
The Bill is currently at its second reading. There appears to be a good chance that the Bill will get passed, but there is still a long way to go before anything is confirmed. Watch this space.
If you have any questions, please don’t hesitate to reach out to our national employment team for assistance.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
