The Employment Relations (Employee Remuneration Disclosure) Amendment Act 2025What New Zealand employers need to know

From 27 August 2025, New Zealand employees are expressly protected when they talk about pay. 

The Employment Relations (Employee Remuneration Disclosure) Amendment Act 2025 (“ERAA”) inserts new protections into the Employment Relations Act 2000 (“the Act”) and creates a new personal grievance (“PG”) ground “adverse conduct for a remuneration disclosure reason” to the Act.

Application of ERAA applies to employer conduct on and after 27 August 2025 even if the employee’s remuneration discussion happened earlier.

Confidentiality clauses: what’s changed?

The ERAA doesn’t “ban” pay‑confidentiality clauses, but it limits how they can be enforced. In practice, an employer can’t rely on a pay‑secrecy term to discipline or disadvantage an employee for protected pay discussions. 

What the ERAA does not do

It does not require employees to disclose their own pay, only protects them if they choose to. 

It does not automatically legalise sharing other people’s private remuneration information you hold because of your role. Other privacy, good‑faith and confidentiality duties can still apply; context matters. 

It does not replace the usual PG process (time limits, mediation, Authority/Court pathways); it adds a new ground within that system.

(Seek advice on role‑based confidentiality.) 

(Seek advice on existing duties of good faith and privacy obligations.)

Seek advice on personal grievance processes.)

What conduct by employees is protected?

An employer must not take adverse action because an employee has engaged in any of these protected activities:

1. Discussing or disclosing their own pay.

2. Asking about another employee’s pay.

3. Participating in a discussion with another employee about that employee’s pay.

4. Being asked about their pay by another employee.

5. Employees do not have to disclose their pay; they’re protected if they choose to.

Employees may discuss or ask about pay. Employers must not take adverse action because of it and must be ready to prove that any action was for other substantial reasons.

What counts as “adverse conduct”?

“Adverse conduct” covers classic detriments like dismissal, demotion or disadvantage, and also includes organising, threatening, requesting or encouraging others to take detrimental action against an employee for a remuneration‑disclosure reason. In other words, not only taking the action but arranging or pressuring others to take it is caught. 

How this fits within the Employment Relations Act

The Employment Relations Authority (“ERA”)’s framework already prohibited unjustified disadvantage and dismissal, and sets out processes for personal grievances, remedies, and Authority/Court powers. The ERAA plugs directly into that scheme by adding a new personal grievance ground into section 103 of the Act.

How the legal test works (and why the presumption matters)

To succeed, an employee must show the employer engaged in adverse conduct for a remuneration‑disclosure reason, and that this reason was a substantial reason for the conduct. The Act then presumes the pay‑discussion reason was substantial unless the employer proves otherwise. Practically, employers need clear, well‑documented non‑remuneration reasons for decisions taken around the time of pay discussions.

Common risk scenarios (and how to mitigate)

Provide neutral guidance on how to have respectful, lawful conversations, and provide an internal contact for remuneration queries. 

Performance management soon after an employee queries pay. 

Pause and quality-check your evidence trail; ensure the reasons and timing stand on their own merits. 

Adjusting Employee benefits; benefits are part of “remuneration”; removing them can be an actionable detriment. Build change processes around legitimate business reasons and consult properly. 

How Van Lawrence & Associates can help

Grievance and investigation support: 

Rapid triage, impartial investigations, and representation if a personal grievance is raised under the new ground.

Agreement and policy clean-up: 

We can redraft your Employment Agreement clauses and Human Resource policies so they respect the new protections while safeguarding commercially sensitive information.

A confidential review of your remuneration practices and documentation to reduce the chance of section 110AB claims.

Advice on restructures, benefit changes and performance processes that withstand the new presumption test.

References

• Employment Relations Act 2000 (as at 27 Aug 2025);

• Employment Relations (Employee Remuneration Disclosure) Amendment Act 2025 (in force 27 Aug 2025);

• MBIE guidance “New protections for employees discussing pay” (8 Sept 2025).