What is good faith?

What is good faith?

The crux of being a good employer comes right down to this principle. Good Faith. It is the foundation of good leadership, not to mention a legal requirement. 

It is a constant requirement to act in good faith. In these times it is noteworthy that employment law still applies. The Employment Relations Act 2000 makes it very clear that employers, employees, and unions need to treat each other respectfully and with good faith intentions at the heart of every conversation and decision.  If you have the best intentions for your staff you’re more likely to do what is right by them (even when hard decisions need to be made) and in turn, lower the risk of litigation.  

So how do you ensure you’re acting in good faith? Here’s how:

  1. Ensure you do not do anything that will or is likely to deceive or mislead (the employee must also do this).
  2. Be active and constructive in establishing and maintaining a productive employment relationship (the employee must also do this).
  3. Be responsive and communicative, (the employee must also do this). 
  4. Give employees access to full information and the opportunity to comment on the information to their employer where you are proposing to make a decision that will or is likely to have an adverse effect on the continuation of their employment.

I like asking this rhetorical question to the employers I work with “if it were you, how would you like to be treated?”. Often, they agree that they would want the opportunity to be consulted, to provide feedback, and to be heard before a decision about them is made. This is the exact requirement across all facets of employment law. 

If you want to lead a team to success they have to be able to trust that you’re taking them on a positive journey, and you have to trust them in return. Trust and confidence are essential in the employment relationship. 

If you don’t trust your employee’s we can develop a plan to resolve that issue.