In a landmark change aimed at bolstering workplace fairness and dismantling pay secrecy norms, the Employment Relations (Employee Remuneration Disclosure) Amendment Bill passed its third reading on 20 August 2025 and is awaiting Royal Assent to become law soon.
Key changes:
The Bill amends the Employment Relations Act 2000, by adding a new personal grievance ground “adverse conduct for a remuneration disclosure reason”, meaning that employee can now file a personal grievance if they suffer detrimental treatment for discussing their own pay with colleagues.
“Adverse conduct” is broadly defined in the Bill as:
- Dismissal
- Denial of equal terms, benefit, or opportunities
- Imposing detriments not faced by colleagues
- Forcing resignation or retirement.
“Remuneration disclosure reason” includes:
- An individual discussing their pay
- Inquiring about a colleagues pay
- Participating in or responding to such conversations.
To be successful in a personal grievance claim under this new ground, an employee would need to satisfy a two-part test – showing both adverse conduct on behalf of the employer, and that the pay disclosure reason was a substantial factor. This is a reverse onus: employers must prove otherwise.
Practical considerations
Pay secrecy or confidentiality clauses in employment agreement will remain lawful but will be rendered unenforceable if used to penalise employees for pay discussions.
While it is not necessary for employers to vary existing employment agreements to remove pay secrecy clauses, it is advised that employers do not include such clauses in any future contracts.
Staff handbooks, HR training manuals, and grievance procedures should now be updated to reflect that pay discussion is not protected. It is recommended that any applicable management staff understand the changes, and that retaliation for wage transparency may now give rise to personal grievances.
Employers should be prepared to justify any adverse actions unrelated to remuneration disclosure. Documentation and fairness in decision-making. Become even more critical under the reverse onus provisions.
While this change may appear daunting to employers, handled the correct way, may encourage transparent and equitable compensation practices which in turn maintain trust and morale in workplace culture.
This Bill represents a key evolution in New Zealand employment law, cementing legal support for open pay discussions and eroding a legacy of secrecy that has obscured inequity. It sends a clear message: transparency isn’t just good ethics – it’s the law.
If you’d like to know more about how this change may affect your business, please reach out to our workplace law team today.
