02/04/2024
Ask most people how they want to be treated in life and you’ll usually be met with a request for fair and reasonable treatment. As you might expect, this is no different in the workplace 😊
Good faith requires an individual or company to act with honesty, integrity, and sincerity. It goes beyond simply complying with the law and implies a genuine intention to be fair in all business interactions and relationships.
It involves being responsive and communicative, acting honestly, openly and without hidden motives, and treating each other with respect (among other things).
➡️ Failing to act in good faith can have detrimental consequences for businesses.
Employees have the right to raise personal grievances against employers they believe have acted in bad faith.
If the Employment Relations Authority or the Employment Court uphold a grievance they may require a party to pay a penalty.
💰 The maximum penalties that can be awarded are $10,000 against an individual and $20,000 against a company.
𝗪𝗲 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽
The good faith obligation requires all Kiwi employers to be responsive, open-minded, and honest with their employees. In return, employers can expect the same treatment back.
If you need support establishing what good faith should look like in your business or want some advice on the best way to approach an employment dispute, we can help.
☎️ Our initial chat is always free and, if you decide you’d like some independent, impartial, and up-to-date support, you can make use of our qualified HR expertise for as little as an hour, or as long as you’d like. It’s up to you.
