What is a 'good employer'?
The following sources provide guidance and descriptions of a 'good employer'.
There are some common themes in the legal cases where the ‘good employer’ has been referred to:
- There is no one recipe or template for being a ‘good employer’ as it relies on context and the facts of each case.
- The State Sector Act 1988 reaffirmed the concept of the ‘good employer’ and 'elevated it to a principle,' which permeates other pieces of legislation (such as the Crown Entities Act 2004), policy and practice.
- The concept of the ‘good employer’ is bound up with the principles of natural justice and requires employment procedures to be 'fair in all the circumstances'.
- The ‘good employer’ obligations, including administrative fairness, can readily be adapted to all stages of the employment agreement. For example, there is a duty to act fairly in appointments, recruitment, promotion, pay relativities, redundancy and so on.
- A failure to consult adequately with staff about aspects of the employment relationship and workplace practices breaches the ‘good employer’ obligations. The Employment Court requires the consultation to be more than mere notification. [1]
- The ‘good employer’ principle imposes obligations of 'trust, confidence and fair dealing'.
- In the Rankin case for example, it was stated that 'where an employer required by statute or by agreement to be a "good employer" had it in mind not to renew the fixed term employment of an employee who was eligible for reappointment by reason of dissatisfaction with his or her conduct or performance, the employer was under a duty to disclose the factors being considered so far as they were not obvious or present to the mind of the employee and to give him or her a reasonable opportunity to address the employer’s concerns'.
- The ‘good employer’ requirement may not necessarily be explicit in the employment agreement, but this does not mean that it does not apply. In one particular case, it was said that the agreement was not immune from the implied term of fairness. That implied term was bolstered by the ‘good employer’ provisions of the State Services Act 1988.
- It has been said that the duty to treat employees fairly and reasonably exists independent of statute. The statutory duty is to put in place a personnel policy that will ensure that the contractual duty is carried out.
- In a case involving constructive dismissal after a request for one year’s unpaid leave for family reasons was denied, it was argued that the ‘good employer’ notions required consideration of Māori notions of extended family.
What makes a workplace good or even exceptional? In 2004, an Australian research project, Simply the Best, located 15 themes or drivers for workplace excellence as outlined below.[2]

The researchers said:
'As we discussed and analysed our findings further, it became clearer that the central focus for excellent workplaces was the quality of the working relationships between the people who worked in them. All the other dimensions were important, but somehow the issue of working relationships linked all of them together.'
'We cannot emphasise enough that what distinguishes the excellent workplaces from the very good workplaces is that these 15 drivers are all present in the excellent workplaces, without exception…'
Having equal employment opportunities embedded in the culture (or working towards this occurring) is an essential part of being a ‘good employer’. All individuals and groups should have equal opportunities without barriers or biases interfering with these opportunities. However, there are some groups who are often marginalised when it comes to fair and equitable opportunities. They have been hindered through bias and assumptions in recruitment, development and promotion. Worse, in many cases they have had to put up with harassment and bullying arising from the simple fact that they are not part of the majority or the senior ranks. The Crown Entities Act refers to four groups in particular. It states that:
- the aims and aspirations, employment requirements, and need for involvement of Māori as employees of the entity;
- the aims and aspirations and employment requirements and the cultural differences of ethnic or minority groups;
- the employment requirements of women, and
- the employment requirements of people with disabilities
should be taken into account when developing a ‘good employer’/EEO programme.
There are many layers of diversity, and people identify with many characteristics or qualities, not just with gender, ethnicity or whether they have a disability. Loden and Rosener (Workforce America! 1991) have developed a model of diversity which involves the interaction of three dimensions.

It is the combination of these diverse factors in the model above that makes workplaces and people unique and diversity complex. Any EEO programme or plan needs to take this into account.
Case Studies
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[1] In the Employment Court, Wellington. WC 15/06, WRC 9/06.
IN THE MATTER OF an application for declarations and injunctions
BETWEEN OCS LIMITED, Plaintiff
AND SERVICE AND FOOD WORKERS UNION NGA RINGA TOTA
INCORPORATED, First Defendant
AND LALOPUA SANELE, Second Defendant
Hearing: 9, 10 and 11 May 2006 (Heard at Wellington)
Appearances: P A McBride and G G Ballara, Counsel for Plaintiff
P Cranney, T Oldfield, and A Hughes, Counsel for Defendants
Judgement: 31 August 2006
JUDGEMENT OF C M SHAW
[2] ACIRRT, University of Sydney, Simply the Best Working Paper 88, 2004.