Employers who fail to comply with their industry's Main Collective Agreement will end up on the receiving end of compliance orders from the relevant Bargaining Council. Before delving into the process following the issuance of a compliance order, it's essential to understand the formation of Bargaining Parties, the nature of a Collective Agreement, and the steps to take upon receiving a compliance order.
The Labour Relations Act (LRA) allows trade unions and employer organisations in specific sectors to engage in collective bargaining on behalf of their members. These organisations form the Bargaining Council, where they have the authority to negotiate and set the conditions within their industry.
A Bargaining Council is comprised of employer representatives and trade unions, each advocating for their interests. These parties negotiate terms and conditions related to employment and other mutual interests. The resulting agreement is documented, submitted to the Minister of Employment and Labour, and published in the Government Gazette as a Collective Agreement for the specific industry.
Employers who are not members of a Bargaining Council are not exempt from complying with the Collective Agreement for their sector. The Bargaining Council can request the Minister of Employment and Labour to extend the Collective Agreement to include non-members operating within the Council's scope.
The compliance order issued by the Bargaining Council is the document that identifies a breach of a Collective Agreement and requires the employer to rectify the issue within fourteen (14) days of receiving the order.
Employers may receive compliance orders due to deliberate actions or oversights violating specific provisions of a Collective Agreement, such as failure to pay Bargaining Council levies. These orders are issued after an investigation by an agent of the relevant Bargaining Council. The investigation may be prompted by an employee complaint or non-compliance allegation. If a clear breach is found, the agent will issue a compliance order to address the violation.
If a violation has occurred, it is advisable to rectify the non-compliance promptly to avoid further actions. Failure to comply can lead to arbitration at the relevant Council and potentially result in an Enforcement Arbitration Award, which may mandate compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.