The Equal Pay Amendment Act 2020 amends the Equal Pay Act 1972 by introducing a new process for employees and unions to raise, progress and resolve pay equity claims, aligned with New Zealand’s existing bargaining framework (under the Employment Relations Act 2000) and use existing resources such as bargaining in good faith, facilitation and mediation to address these claims, with escalation for decision in the Employment Relations Authority or Court to be used as a last resort. 

Dispute Resolution Process Overview

The dispute resolution process is as follows:

• An employee (or group of employees who perform the same or similar work) and/or union submits an arguable written pay equity claim to their employer at any time. A pay equity claim will be arguable only if:
   

           - The claim relates to work that is or was predominantly performed by female employees; and 

           - it is arguable that the work is currently undervalued, or has been historically undervalued

• Within 45 working days of receiving the claim the employer must respond to the claim confirming whether the employer agrees there is an arguable pay equity issue, or whether the employer considers the claim is inarguable and provide the necessary supporting evidence of their decision.
  
  
• The employee is entitled to request further information about the employer’s decision and refer the claim to mediation services for resolution. 
  
  
• The parties may also refer the claim for facilitation or determination in the Employment Relations Authority, however that should be done as a last resort, given the focus on negotiation, collaboration and good faith.
  
  

There are processes for employers to acknowledge receipt of a claim, seek consolidation of multiple claims, or opt out of the process.

Affected employees are automatically covered by union claims.  However, unions may not demand union fees from non-members and employees may opt out of the process.