An employers group says it's been forced to play a part in the Government's new Fair Pay Agreements system.

The Government had offered the lobby group funding to act on behalf of employers that need representation and play a supporting role in the system more generally.

But BusinessNZ says it wanted nothing to do with the scheme, partly due to its compulsory nature.

Advocacy Director Catherine Beard told Mike Hosking the organisation has now accepted it will represent some members in some negotiations, on a case-by-base basis.

She says the Fair Pay Agreement system is the law, and businesses and industry groups will have to follow it.

The system comes into effect next month.

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