Breaking: New Zealand's Pay Transparency Revolution - What Your Business Needs to Know

Pippa Dones
Nov 19
2 min read

Major Legislative Change Just Passed

On 20 August 2025, Parliament passed the Employment Relations (Employee Remuneration Disclosure) Amendment Bill at its third reading. This groundbreaking legislation will become law the day after receiving Royal Assent (expected within weeks), fundamentally changing how New Zealand businesses handle pay discussions.

What This Law Actually Does

For Employees:

Creates legal protection to discuss and disclose their pay without fear of retaliation
No obligation to share pay information - it's entirely voluntary
Protection extends to employees who receive pay queries or discuss pay with colleagues

For Employers:

Prohibits "adverse conduct" in response to pay discussions (dismissal, worse employment terms, or any negative differential treatment)
Makes retaliation a personal grievance ground
Pay secrecy clauses become unenforceable (though not illegal)

What Counts as "Remuneration": The law covers wages, salaries, allowances, bonuses, commissions, and employer superannuation contributions - essentially all forms of compensation.

Immediate Action Required for Your Business

Review Employment Agreements
Stop including pay secrecy clauses in new contracts. Existing clauses won't be removed automatically, but they can't be enforced once the Act commences.
Update Your Policies
Check your disciplinary procedures, social media policies, and confidentiality agreements. Remove any provisions that could penalise staff for discussing their own remuneration.
Train Your Managers
Ensure all supervisors understand they cannot warn, discipline, or negatively treat employees for pay-related discussions. Document legitimate, non-retaliatory reasons for all employment decisions.
Prepare Your Pay Structure
With increased transparency likely, ensure your pay bands are consistent, fair, and well-documented. Be ready to explain your remuneration rationale.

What This Means for Your Business Culture

This legislation signals a significant cultural shift toward pay transparency. Expect more salary conversations among your team and potentially with competitors' staff. The key is preparation - having clear, defensible pay structures will protect your business and demonstrate fairness.