May 2025
Committee Secretariat
Education and Workforce Select Committee
Parliament Buildings
Wellington
Restaurant Association of New Zealand submission on the Employment Relations (Termination of Employment by Agreement) Amendment Bill
The Restaurant Association of New Zealand (the Restaurant Association) welcomes the opportunity to submit on the Employment Relations (Termination of Employment by Agreement) Amendment Bill.
Since 1972, the Restaurant Association has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry, covering the length and breadth of the country. We’re passionate about our vibrant industry, which is full of interesting, talented and entrepreneurial people.
The Restaurant Association supports this bill, which seeks to allow for protected negotiations to occur between an employer and employee to terminate the employee’s contract. We submit that employers and employees should be able to reach a mutual agreement if this process is of benefit for both parties.
Select Committee Considerations
As the largest representative body for restaurants and cafés in New Zealand, we represent over 2,500 hospitality businesses, with a large proportion of these members being small business owners. We submit this bill would be of great benefit to small businesses who do not have the same access to resources as large businesses. The ability for businesses to hold protected negotiations is likely to result in the best case scenario for both employers and employees.
There are cases where it is in the best interest of the employee and the employer to have an option to mutually agree to terminate the employee’s contract. If an employee is not the right fit for a business, but does not have the financial resources or time to seek new employment, this bill provides an option that benefits both parties.
The Restaurant Association is aware there are some concerns regarding possible power imbalances between employees and employers, however, we submit that employee protections can be included in the bill to address this issue while still providing the opportunity for both parties to receive the benefits of protected negotiations.
The United Kingdom’s protected conversations model, which this bill is based off, include employee protections for anything said or done which in the tribunal’s opinion was ‘improper’, for example:
- harassing, bullying and intimidating the employee, for example, through the use of offensive words or aggressive conduct,
- unlawfully discriminating against or victimising the employee by reason of any one of the protected characteristics,
- putting unfair pressure on an employee, such as not giving them reasonable time to consider a settlement offer or threatening dismissal if a settlement proposal is rejected,
- telling an employee that unless any offer is accepted this will result in their dismissal, and
- not allowing an employee to seek independent legal advice.
The Restaurant Association would be supportive of similar inclusions in this bill, however it is important to ensure the final legislative wording is clear and explicit in what is expected of employers. Employers should not be punished for ambiguity in legislation.
Thank you for the opportunity to provide feedback on the Employment Relations (Termination of Employment by Agreement) Amendment Bill. We would be happy to discuss any part of this submission in more detail, and to provide any assistance that you may require.
Ngā mihi nui,
Marisa Bidois
Chief Executive