Good Faith in Employment: More Than Just a Legal Obligation

The Employment Relations Act 2000 is the foundation of New Zealand’s employment law, built around a key principle: good faith. But what does that actually mean in practice?

At its core, good faith requires honesty, fairness, and open communication between employers and employees. It’s more than just a legal requirement—it’s the backbone of a productive and respectful workplace.

What Does Good Faith Look Like?

Under the law, all parties in an employment relationship must:

  • Be open and honest—no misleading or deceptive behaviour.
  • Communicate clearly and in a timely manner—especially when decisions could affect someone’s job.
  • Act fairly and reasonably—even when facing tough workplace issues.

In theory, it sounds straightforward. But in reality, workplace relationships are complex, and emotions can make things messy. Disagreements, restructuring, performance issues—these are all moments where good faith is tested.

Why It Matters

When good faith is upheld, workplaces thrive. Employees feel valued, and businesses run more smoothly. But when it’s ignored? Miscommunication, mistrust, and legal disputes follow.

For employers, failing to act in good faith can lead to costly personal grievances and reputational damage. For employees, it can mean unfair treatment or job insecurity.

Navigating Good Faith in the Workplace

Whether you’re dealing with performance management, disciplinary actions, or contract changes, ensuring you’re acting in good faith is crucial. It’s not just about ticking a legal box—it’s about fostering a fair and respectful work environment.

Need guidance on how to apply good faith in tough workplace situations? Get in touch for expert advice to ensure your workplace stays fair, compliant, and productive.

With purpose, Persia

Disclaimer: This article is for general informational purposes only and is not legal advice. For advice specific to your situation, please get in touch with me directly.