Understanding "Good Faith" in the Employment Relationship
As an employer you will have heard many times that the concept of "Good Faith" lies at the heart of the employment relationship. Enshrined in the Employment Relations Act 2000, "Good Faith" serves as a guiding principle that employers and employees should follow to foster a harmonious, fair, and productive work environment.
This blog aims to provide you with insights into what "Good Faith" means, and how you can apply it in your workplace to promote a positive and mutually beneficial employment relationship.
Defining "Good Faith"
In the context of employment, "Good Faith" refers to the obligation of both employers and employees to act honestly, openly, and respectfully towards each other. It encompasses a duty to treat each other fairly and reasonably, making genuine efforts to communicate, cooperate, and reach mutually satisfactory outcomes.
Key Elements of "Good Faith" in Employment
Communication and Consultation: You must actively engage with your employees and maintain open lines of communication. This includes discussing changes that may affect employment conditions, work processes, or redundancies, and seeking feedback from employees before making significant decisions.
Providing Information: You should ensure that your employees have access to relevant information that may impact their employment, such as company policies, changes in job roles, and performance expectations.
Mutual Trust and Confidence: Both parties should have confidence that they can rely on each other to fulfill their respective obligations and commitments. Trust forms the foundation of a healthy employment relationship.
Fair and Reasonable Treatment: Yoiu are also expected to treat employees fairly and reasonably, taking into account their needs and concerns. This involves avoiding unfair discrimination, harassment, and undue pressure.
Collective Bargaining: For workplaces with union representation, "Good Faith" extends to the collective bargaining process. You should negotiate in good faith with employee representatives, showing respect for their views and engaging in constructive discussions.
Applying "Good Faith" in the Workplace
Develop Transparent Policies: You should have clear, written policies that outline employment conditions, rights, and responsibilities. These policies should be communicated to employees in a transparent manner.
Consultation and Involvement: Before implementing significant changes, such as restructuring or redundancies, involve employees in the decision-making process. Seek their input and address their concerns.
Performance Management: When addressing performance issues, approach the matter constructively and provide employees with opportunities for improvement. Offer feedback, training, and support to help them succeed.
Resolving Disputes: If conflicts arise, seek resolution through open dialogue and mediation. Create a safe environment for employees to voice their concerns without fear of retaliation.
Promote Work-Life Balance: Encourage work-life balance and employee well-being. Support flexible working arrangements where feasible.
Essentially, "Good Faith" is a foundational principle in the employment relationship within New Zealand.
When Employers understand and apply this concept they foster a positive, inclusive, and productive work environment. By engaging in open communication, treating employees fairly, and being responsive to their needs, you can create a workplace where employees feel valued and motivated to contribute their best efforts.
Embracing "Good Faith" not only strengthens the employment relationship but also benefits your organisation as a whole.
Disclaimer
This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.