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