The NZPFU FENZ collective agreement includes a payment as an incentive for employees for return to work from parental leave and to remain employed by FENZ for at least 6 months upon their return.

In May 2023, FENZ unilaterally decided new “policy” in a memo to People Branch staff restricting the payment only to those that applied for 12 months leave and took at least three months leave.  The clause does not refer to any requirement to have applied for 12 months leave, or to have taken at least 3 months leave.

The relevant clauses in the Collective provide the following:

Parental Leave

1.4.2             Parental Leave as special leave without pay shall be granted to a pregnant female worker, or the partner of a pregnant female worker where they have transferred their entitlement to parental leave under the Parental Leave and Employment Protection Act 1987. It is not to be granted as sick leave on pay. An application for leave under this heading must be supported by a medical certificate.

1.4.2.1          Leave of up to twelve months is to be granted to workers with at least one year’s service at the time of commencing leave.

1.4.2.2          For those with less than one year’s service, parental leave up to six months is to be granted.

1.4.2.3          Where a worker returns to duty before the expiration of twelve month leave without pay and completes a further six month service, they qualify for a payment equivalent to thirty working days on pay (calculated at the rate payable for the thirty working days immediately following the cessation of duty). For coloured watch workers it is equivalent to 8.5 weeks’ pay, for yellow watch workers it is equivalent to 7.5 weeks’ pay, and for black watch workers it is equivalent to 6 weeks’ pay.

The NZPFU disputed FENZ’s position and in September 2025 the Employment Relations Authority agreed with the NZPFU position finding that the incentive payment in clause 1.4.2.3 “was intended by the parties to be a contractual right for workers who are granted periods of less than months parental leave.  It is not limited to only workers who were granted 12 months of parental leave.”

The ERA decision is linked in this notice.

FENZ did not accept that decision and appealed to the Employment Court.

The NZPFU sees this as another attack on terms and conditions of employment.  We have members who are desperately waiting for the payment now for 2-3 years. 

The Appeal is being heard in the Employment Court in Wellington this Friday.  No one has been called for cross-examination, so it is likely to be only legal arguments.  These hearings are public so interested members can attend – Level 5, District Court Building, 43-49 Balance Street, Wellington.

In unity,
Wattie Watson
National Secretary