Tanya Gray, Author at ConsultingHQ

Fractional HR: Strategic HR expertise when your business needs it

by Tanya Gray | Sep 4, 2026 | HR Advice, Outsourced HR

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Growing businesses often reach a point where workforce decisions need experienced HR leadership, but hiring a full-time HR Director doesn’t make commercial sense.

The business may be preparing for growth, considering a significant restructure, planning a merger or acquisition, managing increased risk, or making decisions that will affect its workforce for years to come.

These moments require an experienced HR leader who can work alongside the owner, executive team or board, understand the commercial implications and guide the workforce strategy behind the decision.

That’s where fractional HR fits.

What is fractional HR?

Fractional HR gives a business access to an experienced HR leader on a part-time, project or advisory basis.

The fractional HR leader works closely with the people making strategic decisions in the business. They bring the experience of an HR Director or senior People and Culture leader, with an arrangement shaped around what the business actually needs.

That could mean attending a quarterly board meeting, advising the executive team through a period of change, leading a specific strategic project or providing interim HR leadership while the business recruits for a permanent role.

The value comes from having strategic HR expertise involved at the right level and at the right time.

Fractional HR and HR Partner support serve different needs

An HR Partner supports the ongoing HR needs that arise across the employee lifecycle. This can include employment agreements, policies, performance processes, employee relations matters and support for managers.

Fractional HR operates at a more senior and strategic level.

HR Partner support	Fractional HR
Supports ongoing and day-to-day HR requirements	Provides senior strategic HR leadership
Works with managers on employee matters and HR processes	Works with owners, executives, boards and shareholders
Helps implement HR policies, procedures and good practice	Shapes workforce strategy, organisational design and major change
Supports the operational needs of the business	Advises on decisions with long-term commercial and workforce implications
Often works alongside an existing leadership team	Can step into an interim senior HR leadership position

A business may use one or both services. The right arrangement depends on the level of support required and the decisions the business needs to make.

How does fractional HR work?

Fractional HR support can adapt to the scale, timing and complexity of the work.

Some businesses engage a senior HR leader for a set number of hours each month. Others need support around quarterly board meetings or during a defined period of growth or organisational change.

Engagements can include:

Ongoing monthly strategic support
Quarterly board-level advice
Leadership of a defined strategic project
Interim senior HR leadership
Executive and board advisory support
Additional expertise during a merger, acquisition or restructure

The fractional HR leader builds an understanding of the organisation, its workforce, its commercial goals and the challenges facing its leadership team. This allows them to provide informed advice rather than isolated recommendations.

The business gains continuity and senior capability while keeping the arrangement proportionate to its needs.

When should a business consider fractional HR?

The need for fractional HR often becomes clear when people decisions start affecting the direction, value or stability of the wider business.

Common triggers include:

Rapid growth or a significant increase in recruitment

A merger or acquisition

Organisational restructuring

Succession planning

Preparing the business for investment or sale

Increasing employment relations or compliance risk

Leadership capability concerns

Board governance requirements

A change in ownership or strategic direction

The temporary absence of an internal HR leader

At this level, the challenge extends beyond resolving an individual HR issue. Leadership needs to understand what the decision means for organisational structure, workforce capability, risk, culture and future performance.

A fractional HR leader brings those considerations into the room before the business commits to a course of action.

What can a fractional HR leader help with?

Fractional HR focuses on decisions and initiatives that require senior judgement, commercial understanding and workforce expertise.

HR and workforce strategy

Your workforce needs to support where the business is going.

A fractional HR leader can translate commercial goals into a clear people strategy, including the workforce structure, leadership capability and skills the business will need as it grows or changes.

Organisational design

Growth and change often expose problems with existing structures.

Fractional HR can review reporting lines, responsibilities, leadership layers and workforce capability. This helps the business build a structure that supports accountability, performance and future growth.

Mergers and acquisitions

The people implications of a merger or acquisition start well before the transaction is complete.

Fractional HR input helps leaders assess workforce risk, organisational structure, key-person dependencies, employment obligations and cultural alignment. It also supports a more deliberate transition once the organisations come together.

Significant restructuring and organisational change

A restructure affects commercial priorities, legal obligations, leadership capacity and employee confidence.

A fractional HR leader helps the business plan the change, assess risk, establish the right process and support leaders through implementation.

Succession planning

Succession planning protects the continuity and value of the business.

Fractional HR can identify critical roles, leadership gaps and key-person risk, then develop a practical plan for future ownership, leadership or capability changes.

Board and executive advice

Boards need clear information about workforce risk, leadership capability, succession, compliance and organisational performance.

A fractional HR leader can bring that perspective into governance discussions and give directors practical recommendations that connect workforce decisions with business outcomes.

Preparing for investment or sale

Potential investors and buyers will look closely at workforce capability, employment risk, leadership stability and dependence on key individuals.

Fractional HR can help the business identify and address those issues before they affect value, negotiations or due diligence.

Interim HR leadership

A sudden departure or extended absence can leave a significant gap in the leadership team.

A fractional arrangement gives the business experienced HR leadership during the transition, maintaining momentum and supporting important decisions while the organisation considers its long-term needs.

Supporting owners, executives and boards

Senior people decisions rarely sit neatly within the HR function.

They affect financial performance, business continuity, governance, operational capacity and future growth. That’s why fractional HR often works directly with:

Business owners

CEOs and General Managers

Executive and leadership teams

Directors

Advisory boards

Shareholders

The role is to give decision-makers a clear view of workforce implications and help them act with greater confidence.

This can also relieve pressure on an owner or CEO who has become the default person responsible for every complex workforce decision. They remain accountable for the business, but they gain an experienced adviser who can guide the thinking, challenge assumptions and lead the people work required.

Working with your other advisers

Business decisions often require input from several specialist advisers.

A fractional HR leader can work alongside accountants, lawyers, health and safety consultants, recruitment specialists, licensed immigration advisers, business coaches and governance advisers.

Each adviser contributes expertise from their own field. Fractional HR brings the workforce perspective into that wider discussion, helping the business understand how commercial or legal decisions will affect its structure, leadership and employees.

This gives owners and boards clearer, more complete information when making significant decisions.

The business benefits of fractional HR

Senior expertise at the right time

The business gains access to experienced HR leadership for the decisions and periods that require it.

Stronger strategic decisions

Leaders can assess workforce capability, structure, risk and organisational impact before committing to major plans.

Greater leadership capacity

A senior HR adviser can take ownership of complex people work and give business leaders more capacity to focus on their other responsibilities.

Flexible support

The level of involvement can increase during growth, change or a significant project, then reduce when the need changes.

Better risk management

Early senior HR input helps the business identify employment, capability, succession and organisational risks before they undermine a major decision.

Long-term workforce value

Clearer leadership, stronger structures and deliberate workforce planning help the organisation build capability that supports its future direction.

Does your business need fractional HR?

Your business may not need a full-time senior HR leader. It may need that level of expertise for a particular decision, transition or stage of growth.

Fractional HR gives owners, executives and boards access to an experienced workforce adviser who understands the commercial context and can guide the people strategy behind it.

ConsultingHQ provides senior fractional HR support to businesses navigating growth, organisational change, succession, governance requirements and other significant workforce decisions.

If your next business decision carries important people implications, talk to us about the level of HR leadership you need.

Employment Leave Act 2026: What NZ employers need to know

by Tanya Gray | Aug 26, 2026 | Leave & Payroll

Contents

What is changing under the Employment Leave Act?
What isn’t changing?
What happens to existing leave balances?
The Employment Leave Act will affect more than payroll
When will employment agreements need to change?
What should NZ employers do now?
Preparing for the Employment Leave Act
FAQs

You can listen to this automated AI version of the article here:

The Employment Leave Act 2026 is now law and will replace the Holidays Act 2003 in 2028.

For New Zealand employers, the most important message right now is:

Nothing changes today.

The Employment Leave Act received Royal Assent on 6 August 2026 and will come into force on 6 August 2028. Until then, employers must continue to follow the Holidays Act 2003 and cannot start applying the new leave rules early.

The new rules will apply from the beginning of each employee’s first pay period starting on or after 6 August 2028, so the transition will align with individual pay cycles.

That gives employers two years to understand the changes and prepare their systems and processes before the new framework takes effect.

What is changing under the Employment Leave Act?

The Employment Leave Act will make significant changes to how statutory leave is earned, taken and paid.

One of the biggest changes is the move to hours-based leave accrual.

Under the new system:

Annual leave will accrue in hours from an employee’s first day of employment, based on their standard hours.
Sick leave will also accrue in hours from day one.
Annual and sick leave will accrue against standard hours rather than additional or casual hours.
Additional and casual hours will receive a 12.5% Leave Compensation Payment instead of annual and sick leave accruing on those hours.
Employees will use one hour of accrued leave for every hour of leave they take and will be able to take part days of leave.
Alternative holidays will also move to hours-based accrual.
Leave will be paid using the new hourly leave pay rate.
A new Otherwise Working Day test will apply when determining public holiday entitlements. (MBIE)

Bereavement leave and family violence leave will also become available from the start of employment under the new framework.

Employees will be able to request to cash up up to 25% of the annual leave they accrue each year.

Compare the current and new leave rules

Want to see the changes side by side? Our downloadable comparison table shows the current Holidays Act rules alongside what will apply under the Employment Leave Act from August 2028.

What isn’t changing?

While the way leave is calculated will change considerably, many of the underlying minimum entitlements remain familiar.

Annual leave will remain equivalent to four weeks each year for employees with standard hours.

Sick leave will remain equivalent to 10 days each year for employees with standard hours, but it will accrue progressively in hours from day one rather than becoming available after a qualifying period.

Public holidays, bereavement leave and family violence leave will also remain protected statutory entitlements.

So, for many employers, the biggest adjustment will be how leave is earned, recorded, taken and paid.

What happens to existing leave balances?

Existing leave balances will need to transition into the new hours-based system.

Employment New Zealand has confirmed that employers will need accurate payroll data so existing leave balances can be converted when the new legislation takes effect. More detailed guidance on converting leave balances will be released during the implementation period.

That makes current Holidays Act compliance important.

Employment New Zealand recommends checking leave balances and leave pay calculations, fixing errors and completing any remediation that may be required.

Starting with accurate records will make the eventual transition easier. If current payroll data is wrong, those errors could carry into the new system and become more difficult to correct. (Employment New Zealand)

The Employment Leave Act will affect more than payroll

Much of the discussion around the new legislation has focused on payroll, but employers will eventually need to look more broadly at how the changes affect their business.

Employment New Zealand has identified a number of areas that may require review or changes before 2028, including:

Payroll and payroll-related systems
Employment agreements
Workplace policies
Pay statements and leave records
Time and attendance systems
Onboarding and rostering
Leave tracking and employee records.

Employment agreements may need updating to accurately reflect employees’ hours of work, align with the new leave entitlements and leave pay rules, address new requirements affecting leave balances in some circumstances, and replace references to the Holidays Act 2003.

Workplace policies covering leave and holidays, pay and allowances, record-keeping, annual closedowns and family violence support may also need to change.

For organisations with a large workforce, collective agreements or complex working arrangements, there may be a significant amount of work involved.

That doesn’t mean everything needs to be changed now.

When will employment agreements need to change?

Employment New Zealand recommends employers aim to have their employment agreements updated by 6 August 2028.

There will be an additional transition period until 6 August 2029 for agreements that have not been updated by the time the Act comes into force.

During that additional year, employers will need to comply with both the employment agreement and the Employment Leave Act. Where they provide different entitlements, the employer will need to apply whichever is more favourable to the employee.

Employers also cannot make changes to employment agreements without discussing and agreeing those changes with employees first.

Employment New Zealand says employers with collective agreements coming up for renegotiation, large numbers of employees or complex working arrangements can start planning earlier because updating their agreements may require more time.

What should NZ employers do now?

There is no need to rush into changing payroll settings, employment agreements or workplace policies.

Employment New Zealand’s implementation timeline specifically states that no action is required for employers at this stage, from August to October 2026. The Holidays Act remains in force and continues to apply.

For now, employers can focus on understanding what is coming and keeping their current records and compliance in good order.

This includes:

Continue complying with the Holidays Act 2003.
Current leave and holiday obligations remain unchanged.
Make sure payroll and leave data is accurate.
Check current leave balances and calculations and address existing compliance issues.
Understand the new framework.
Consider how significant the eventual transition may be for your workforce and systems.
Stay in touch with your payroll provider.
Payroll software will need to support the new rules, and providers are now preparing for those changes.
Watch for further official guidance.
Employer-specific guidance is scheduled to start being released from November 2026, with further resources following throughout the implementation period.

More detailed guidance on employment agreements, policies, leave balance conversions and complex working arrangements is still to come.

Preparing for the Employment Leave Act

The Employment Leave Act represents a significant change to New Zealand’s leave framework, but employers have time to prepare.

Right now, the priority is to continue meeting your existing Holidays Act obligations and understand what is coming.

As further guidance becomes available, employers can work through any required changes to employment agreements, workplace policies and HR processes in a planned way ahead of 2028.

If you need support with your current employment agreements, workplace policies or HR compliance, or want advice as the Employment Leave Act implementation progresses, talk to our team.

FAQs

When does the Employment Leave Act 2026 come into force?

The Employment Leave Act comes into force on 6 August 2028, two years after receiving Royal Assent. The new rules will generally apply from the beginning of an employee’s first pay period starting on or after that date.

Does the Employment Leave Act replace the Holidays Act 2003?

Yes. The Employment Leave Act 2026 will replace the Holidays Act 2003. Until the new legislation comes into force, employers must continue complying with the Holidays Act and cannot apply the new rules early.

Do employers need to change their employment agreements now?

No immediate action is required. Employment New Zealand recommends employers aim to have agreements updated by 6 August 2028, with detailed employer guidance being released progressively during the implementation period.

Will annual leave accrue in hours under the Employment Leave Act?

Yes. Annual leave will accrue progressively in hours from day one against an employee’s standard hours under the new system.

Thinking about redundancy? The risks NZ employers often miss

by Tanya Gray | Aug 21, 2026 | HR Advice

Contents

NZ employment claims are rising.
Many employers don’t realise consultation is required
The biggest mistake often happens before consultation even starts
AI is creating a new risk for employers
We often get the call after the dispute starts
Good documents aren’t the same thing as good processes
Making someone redundant may be easy. Doing it properly is the challenge.
Need help navigating a restructure or redundancy?

You can listen to this automated AI version of the article here:

NZ employment claims are rising.

According to the Employment Relations Authority’s Annual Report 2025, the Authority received 3,070 applications in 2025, up from 2,117 in 2023, an increase of approximately 45% in just two years!

For employers, those figures should be a reminder that personal grievances are not rare events. Many arise not because the employer lacked a genuine business reason for change, but because something went wrong in the process surrounding that decision.

Artificial Intelligence is changing the employment landscape on both sides. We are increasingly seeing employers use AI to draft restructure letters, only for employees to use AI to analyse the process and generate detailed personal grievance claims.

The documents often look impressive.

The issue is that a professionally written letter does not necessarily mean the process behind it is legally defensible.

Most employers do not get themselves into trouble because they lack a genuine business reason for change, but because they miss something they didn’t realise they needed to do.

And nowhere is that more common than restructures and redundancies.

“Business is slow. We need to make this employee redundant.”

We hear versions of this all the time.

The business owner has identified a genuine problem: Revenue is down, or work has reduced, or costs need to be lowered, or the structure no longer works.

Or:
“This employee is constantly late.”
“Their performance isn’t where it needs to be.”
“They’re causing problems in the team.”
“I’ll just make them redundant…”

We often tell employers that New Zealand employment law has different levers for different situations.

If the role is genuinely no longer required, that’s a redundancy process.
If the issue is misconduct, that’s a disciplinary process.
If the issue is capability, that’s a performance management process.

The risk is pulling the wrong lever and trying to solve one problem with a process intended for another.

The challenge is that many employers assume identifying the commercial reason is most of the job.

It isn’t.

We regularly support employers throughout New Zealand who have a genuine reason for restructuring but are unaware of some of the legal and procedural requirements that sit around the decision.

The issue is rarely the business rationale. The issue is often the process.

In many cases, the business reason itself is not seriously disputed.

The dispute arises because consultation was inadequate, selection criteria were not properly addressed, redeployment was not considered, or the outcome appeared predetermined.

If you’re considering a restructure or redundancy, getting HR advice early can help you understand the process and identify potential risks before you move forward.

Many employers don’t realise consultation is required

One of the most common conversations we have starts with an employer explaining why a role is no longer needed.

When we ask what consultation has occurred, we are often met with silence.

Many employers are genuinely surprised to learn that redundancy should start with a proposal, not a decision.

Employees should generally be given an opportunity to understand the proposal, seek advice, provide feedback, bring a support person and suggest alternatives before a final decision is reached.

Yet we still regularly encounter employers who intend to meet with the employee, explain the situation and move directly to an outcome.

These are not mistakes limited to small businesses.

We regularly see Employment Relations Authority cases involving large employers getting the process wrong.

If you’re considering a restructure and aren’t sure what needs to happen before a decision is made, our HR consultants can help you work through the process.

The biggest mistake often happens before consultation even starts

Another issue we regularly see is employers deciding who they want to lose before they work through the process.

Sometimes there are several employees performing the same or substantially similar work, and the employer already knows which employee it would prefer to retain.

The restructure then becomes about achieving a preferred outcome rather than determining what outcome a fair process produces.

Recently, we spoke with an employer who believed they had run a strong consultation process: The letters were professional, meetings had been held, feedback had been invited.

The problem was that several employees performed the same role, but the employer singled out the employee they wanted to make redundant.

The paperwork looked excellent. The process didn’t look quite so good when the personal grievance arrived.

AI is creating a new risk for employers

We use AI ourselves and it is an incredibly useful tool.

The problem is not the technology, but the false confidence it can create.

We’ve all seen AI present an answer that sounds completely convincing but is wrong. The difference is that HR experts know enough to challenge it. Many employers don’t.

If you don’t know a critical step has been missed, you are unlikely to ask the question that exposes the problem.

We are increasingly seeing employers use AI to generate restructure proposals, consultation letters and outcome documents.

The result often looks impressive.

A scenario we can easily see unfolding goes something like this:

A business has four employees performing the same role.
The business only needs three.
The employer asks AI to draft a restructuring letter.
AI produces a polished document explaining the business rationale and inviting feedback.
The employer follows the process.
Feedback is received.
The employer asks AI to draft the outcome letter.

AI prepares a professional document stating:
“Following consultation and consideration of feedback, employees were assessed against the selection criteria and you have been selected for redundancy.”

Everything appears to be in order.

Then somebody asks: “Hang on. When did we consult on the selection criteria?”

AI responds:

“Ah, you’re quite right. Good catch!”

The problem at this stage is that the redundancy process may already be over.

The employer consulted with the employee they intended to make redundant; the proposed selection criteria were never shared; no feedback was sought on how employees would be assessed.

The redundancy letter looks excellent, but the process sitting behind it may not.

We see this all the time.

The business rationale may be completely legitimate, but the issue is that the employer did not know what questions they needed to ask in the first place.

AI is very good at answering the question it is asked. It is also very good at correcting itself when challenged. The real risk with using AI in a redundancy scenario is that employers often don’t know what questions they should have been asking in the first place.

We often get the call after the dispute starts

A theme appears repeatedly in our work.

Employers often contact us after the employee has raised a personal grievance.

Or after mediation has been requested, or after the Privacy Act request has arrived.

By then, the meetings have already happened, the letters have been issued, the records have been created, and the process is largely complete.

Rather than facilitating a smooth process, our role becomes helping the employer understand the position they are in and the options available to them.

The conversation is often very different from the one we could have had before the proposal was issued.

The earlier we become involved, the more options there are.

Already started the process? We can review where things stand and help you work through your next steps.

Good documents aren’t the same thing as good processes

One misconception we regularly encounter is the belief that a professionally written document means the process must also be sound.

In reality, some of the highest-risk redundancy processes we see are supported by very well-written paperwork.

The issue is usually something behind the document: The wrong people were consulted; a wider affected group wasn’t considered; selection criteria weren’t consulted on; redeployment opportunities weren’t properly explored; the outcome appears to have been decided too early; or internal communications tell a different story from the formal documentation.

These are not always obvious issues to a business owner.

They are also not necessarily issues an AI tool will identify unless someone knows to ask about them.

Making someone redundant may be easy. Doing it properly is the challenge.

Most employers don’t get themselves into trouble because they lacked a commercial reason for restructuring, but because they miss something they didn’t realise they needed to do.

Consultation.
Selection criteria.
Redeployment.
Maintaining an open mind.
Documenting decisions appropriately.
Understanding how the process may appear if it is later challenged.

These are rarely the issues sitting on the first draft of a redundancy letter.

They sit behind the letter.

And they are often the difference between a defensible process and a personal grievance.

Need help navigating a restructure or redundancy?

Our People & Culture team supports employers throughout New Zealand with restructures, redundancies, consultation processes, selection criteria, redeployment assessments and employee communications.

Whether you’re still testing the idea, preparing a proposal or responding to an issue that has already arisen, we can help identify risks before they become expensive mistakes.
The earlier we become involved, the more options are usually available.

Making someone redundant may be easy. Doing it properly requires the right process and the right expertise.

Employment law updates affecting New Zealand employers in 2026

by Tanya Gray | Mar 10, 2026 | HR Advice

Contents

What’s changed
What employers should do now
Staying ahead of change

You can listen to this automated AI version of the article here:

Several employment-related changes are now affecting New Zealand employers, with legislative updates taking effect alongside routine payroll adjustments.

Some of these changes affect how employment relationships are structured and managed, particularly in areas such as senior employment agreements, contractor arrangements, and grievance outcomes. Others are more operational, showing up in payroll settings and employment documentation.

Not every update will require immediate action. However, together they are a useful prompt for employers to check that employment agreements, workplace processes, and payroll systems still reflect current requirements.

What’s changed

Employment Relations Amendment Act 2026

The Employment Relations Amendment Act 2026 came into force on 21 February 2026 and introduces several changes to the way employment relationships are regulated.

In practical terms, this changes how senior dismissals, contractor arrangements, grievance outcomes, and collective agreement onboarding are handled.

$200,000 threshold for unjustified dismissal

A new income threshold has been introduced for unjustified dismissal claims.

For employees under new employment agreements with annual remuneration of $200,000 or more, the default position has changed. Those employees cannot bring a personal grievance for unjustified dismissal or unjustified disadvantage unless the employment agreement explicitly retains that protection.

Employers and employees can agree to keep dismissal protections if they wish, but it must be written into the agreement.

There is also a 12-month transition period for employees who were already employed in the same role with the same employer before the new law took effect. This gives employers time to review existing agreements and consider whether any changes are appropriate.

Why this matters for employers

For senior roles, termination discussions may now include more negotiation around notice periods, termination provisions, or contractual protections.

It also means that how executive agreements are structured becomes more important, particularly for senior hires or leadership roles.

What to consider

Employers may want to review executive employment agreements and think about whether dismissal protections should remain in place or be removed for new hires above the threshold.

Employee conduct and grievance remedies

The Act also changes how remedies are assessed when an employee’s behaviour contributed to the situation that led to a personal grievance.

Previously, remedies could be reduced in these circumstances. The law sets clearer limits on remedies where an employee’s behaviour contributed to the situation that led to a grievance.

There are now specific consequences in these scenarios:

If the employee’s contributing behaviour amounts to serious misconduct, the Authority or Court must not provide any remedy at all
If the employee contributed, even without serious misconduct, reinstatement and compensation are not available
Other available remedies may be reduced, including up to 100%.

Importantly, employers still need to follow a fair and reasonable process when managing disciplinary or dismissal matters.

Why this matters

This change significantly alters the outcome of personal grievances where employee conduct is a contributing factor. Employees who engage in serious misconduct can no longer expect the Authority or Court to award remedies simply because an employer’s process was imperfect. In serious misconduct cases, all remedies are removed entirely, and even where conduct falls short of that threshold, reinstatement and compensation are no longer available.

In short, employee behaviour now has a decisive impact on what remedies, if any, can be awarded.

What to consider

Employers should be clear and well‑evidenced about the nature of the employee’s conduct and whether it contributed to the situation giving rise to the grievance. Investigation findings, disciplinary records, and decision‑making should clearly document the conduct relied on, particularly where serious misconduct is alleged, as this will directly affect the availability of remedies.

New statutory contractor test

Another significant change is the introduction of a gateway test for contractor status.

If a working arrangement meets all gateway criteria, the worker will be treated as not being an employee under the Employment Relations Act. If the criteria are not met, the existing common law tests will still apply to determine employment status.

The intention is to provide more upfront certainty around contractor arrangements.

Why this matters

Misclassification risks still exist, particularly where the reality of the relationship does not match what the contract says.

Businesses using contractors should ensure that contracts and working arrangements genuinely reflect a contractor relationship.

What to consider

This is a good opportunity to review contractor engagements and confirm that documentation and working practices align.

Removal of the 30-day collective agreement rule

The Act also removes the long-standing 30-day rule.

Previously, when a role was covered by a collective agreement, new employees had to start on the collective terms for the first 30 days before moving to an individual agreement.

That requirement has now been removed.

Employers can agree to individual terms from the first day of employment, although they must still inform employees about the relevant collective agreement and union options.

Why this matters

This change provides greater flexibility when onboarding employees in workplaces covered by collective agreements.

What to consider

Employers should review onboarding documentation and employment agreement templates to ensure they reflect the updated rules.

Minimum wage increase from April 2026

The adult minimum wage will increase again from 1 April 2026.

While this is a routine annual adjustment, it still requires practical updates across payroll systems and employment documentation.

The change

From 1 April 2026, the adult minimum wage increases from $23.50 per hour to $23.95 per hour.

The starting-out and training rates are $19.16 (80% of the adult minimum wage).

Why it matters

Minimum wage changes affect more than just employees currently on the minimum rate.

They can also impact:

• Payroll system settings
• Pay rates that sit close to the minimum wage
• Pay differences between junior and experienced staff
• Employment agreements that reference minimum wage provisions

What employers should do

Before the new rate takes effect, employers should:

• Update payroll systems with the new minimum wage rates
• Check employment agreements that reference minimum wage
• Review pay structures for roles close to the new threshold

These updates are usually straightforward, but they should be completed before the new rates take effect on 1 April.

KiwiSaver changes

There are also several confirmed KiwiSaver changes that employers should be aware of, with the first taking effect from April 2026.

The change

From 1 April 2026, the default KiwiSaver contribution rate for both employees and employers increases from 3% to 3.5% of gross pay.

Employees can apply for a temporary rate reduction from 1 February 2026, which takes effect from 1 April 2026. Where an employee receives a temporary reduction, the employer may choose to match the employee’s reduced contribution rate.

From 1 April 2026, eligible employees aged 16 and 17 who are enrolled in Kiwisaver will also begin receiving compulsory employer KiwiSaver contributions.

Looking further ahead, the default contribution rate is scheduled to increase again to 4% from 1 April 2028.

Why it matters

KiwiSaver changes mainly appear operationally in payroll systems and employment agreements.

Employers will need to ensure payroll settings reflect the new contribution rate from April, and that employer contributions are applied correctly for eligible employees aged 16 and 17.

What employers should do

Employers should:

• Update payroll systems to reflect the 3.5% contribution rate from 1 April 2026
• Check that employer contributions are being applied correctly for eligible employees aged 16 and 17
• Review employment agreements where KiwiSaver contribution wording is referenced
• Stay aware of the further increase to 4% scheduled for April 2028

Many payroll providers will implement these changes automatically, but it is still worth confirming that systems are configured correctly.

What employers should do now

Most businesses do not need major changes as a result of these updates. However, it is a good time to review a few key areas.

A practical starting point is to check:

• Executive and senior employment agreements
• Contractor arrangements and contractor documentation
• Investigation and disciplinary processes
• Onboarding templates and employment agreements
• Payroll settings for minimum wage and KiwiSaver

ConsultingHQ is currently updating employment documentation to reflect the legislative changes.

Version 1.8 of our employment agreements and related contracts will be available from 1 April, incorporating the new requirements introduced by the Employment Relations Amendment Act.

If your documentation has not been reviewed recently, this is a sensible time to do so.

Staying ahead of change

Employment law evolves regularly, and most changes become manageable when documentation and processes are reviewed consistently.

Keeping employment agreements, policies, and procedures up to date helps reduce risk and ensures managers can handle issues confidently when they arise.

If you would like help reviewing your documentation or understanding how these changes apply to your business, the ConsultingHQ team is here to help.

You can also contact us if you would like access to the updated employment documentation releasing on 1 April.

Ready to review your employment agreements and policies?

Talk to our team about reviewing your employment agreements, contractor arrangements and HR documentation so they reflect the latest legislative changes.

Pay secrecy law NZ: what the new Employment Relations Amendment means for employers

by Tanya Gray | Sep 2, 2025 | Compliance

Contents

What changed under the Employment Relations Amendment Act 2025
How the pay secrecy law protects employees
Employment agreements and unenforceable confidentiality clauses
Pay transparency and workplace culture
What employers should do next
Get support to review your HR and compliance practices

You can listen to this automated AI version of the article here:

New Zealand’s pay secrecy laws have changed, creating new rights for employees and new compliance responsibilities for employers.

From 27 August 2025, the Employment Relations (Employee Remuneration Disclosure) Amendment Act came into force, changing the way New Zealand employers can manage conversations about pay.

This update makes it unlawful for employers to take adverse action against employees who discuss or disclose their remuneration.

Here’s what you need to know to keep your business compliant and your agreements up to date.

What changed under the Employment Relations Amendment Act 2025

Until recently, many employment agreements in New Zealand included pay secrecy clauses, requiring employees to keep their remuneration confidential. Breaching such clauses could even lead to disciplinary action.

The new law makes these clauses unenforceable. Employees now have the legal right to:

Share their pay with others if they choose.
Ask about a colleague’s pay.
Take part in pay discussions without fear of negative consequences.

For employers, this means you cannot discipline, dismiss, or treat an employee less favourably because they disclosed or discussed remuneration.

How the pay secrecy law protects employees

The Act introduces a new personal grievance ground: “adverse conduct for a remuneration disclosure reason.”

Adverse conduct includes:

Dismissal or forced resignation
Withholding benefits, promotions, or training opportunities
Less favourable terms compared to others
Any action that disadvantages the employee

The key test is whether the disclosure of remuneration was a substantial reason for the employer’s conduct.

Importantly, the onus is on the employer to prove that pay disclosure was not the reason for their actions.

Employment agreements and unenforceable confidentiality clauses

Although you do not need to rewrite existing agreements entered before 27 August 2025, any pay secrecy clauses are now of no effect.

For agreements created after that date:

Do not include clauses requiring pay confidentiality.
If you use broader confidentiality wording (e.g. “terms of employment are confidential”), carve out remuneration to avoid risk.
Review your templates and policies now to make sure they reflect the new law.

Pay transparency and workplace culture

While the change is compliance-driven, it also creates an opportunity. Pay transparency supports fairness, helps address gender and ethnic pay gaps, and can strengthen trust across teams.

Employers who handle this well will be seen as fair, open, and modern. That doesn’t mean every detail of pay must be published—it means employees should feel safe to talk about it if they choose.

What employers should do next

To stay compliant and avoid disputes:

Audit your agreements: Remove or adjust any pay secrecy wording in templates.
Update policies: Make sure your HR policies reflect the change.
Train managers: Ensure leaders understand they cannot discourage or penalise pay discussions.
Communicate clearly: Let staff know about the change and what it means.

Get support to review your HR and compliance practices

Employment law updates like this are part of running a modern business in New Zealand. Staying ahead protects you from personal grievances and builds stronger, more engaged teams.

ConsultingHQ by People Inc Group helps employers review agreements, update policies, and train managers to apply changes with confidence.

Ready to make sure your agreements are compliant?

Talk to our team today about reviewing your employment documentation and setting your business up for fair, transparent practices.