Employment Legislation Update: Employee Remuneration Disclosure Amendment Act
The Employment Relations (Employee Remuneration Disclosure) Amendment Act (the Amendment Act) came into force on 27 August 2025, amending the Employment Relations Act 2000. The Amendment Act brings New Zealand in line with countries such as the UK and the US.
Purpose: Create greater transparency in pay and make it easier to identify and remedy pay discrimination.
Summary of the Amendment Act
Employees can openly discuss their own pay, inquire about colleagues’ remuneration, and engage in pay-related conversations without facing adverse conduct from their employer.
Adverse conduct includes:
- Dismissing an employee
- Refusing or omitting to offer the same terms to employees with similar circumstances, experience, or qualifications
- Subjecting an employee to detriment not faced by others
- Requiring the employee to retire or resign
- Employers or representatives who organise, support, or encourage such actions may also engage in adverse conduct
Note: Employees are not required to discuss or share their remuneration and can decline to comment.
New Personal Grievance Introduced
Employees can now bring a personal grievance if an employer engages in adverse conduct related to remuneration disclosure.
A remuneration disclosure reason covers:
- Discussing their own remuneration with another person
- Making inquiries about another employee’s pay
- Discussing remuneration or receiving inquiries about it
Remuneration includes:
- Salary or wages (including overtime and penal rates)
- Allowances
- Productivity-based bonuses or incentive payments
- Employer contributions to superannuation schemes
- Other types of work-related pay
For conduct to be considered adverse, remuneration disclosure must be a substantial reason for the employer’s actions. There is a presumption that it is substantial unless the employer can prove otherwise.
Implications for Employers
- The Amendment Act applies only to conduct on or after 27 August 2025.
- Any clauses in employment agreements restricting employees from discussing remuneration will likely be unenforceable.
We Can Help
Our HR Advisory team is also on hand to provide practical advice, tailored guidance, and the tools you need to navigate these changes with confidence.