Employment Relations (Employee Remuneration Disclosure) Amendment Bill: Key points for employers

1. Dismissing the employee;
2. Failing to offer the employee the same terms, conditions, benefits, or opportunities as others with similar qualifications and experience;
3. Subjecting the employee to detriment not experienced by others in comparable roles;
4. Forcing or causing the employee to retire or resign.

Protected disclosure activities

Conduct is considered to be “for a remuneration disclosure reason” where an employee:

1. Discusses their remuneration with any person (whether or not disclosure occurs);
2. Inquires into another employee’s remuneration (regardless of whether it is disclosed);
3. Participates in such discussions or responds to such inquiries.

Two-limb test and reverse onus

To establish a valid grievance, an employee must show:

1. That adverse conduct occurred; and
2. That a remuneration-related reason was a substantial factor in the employer’s conduct.

There is a reverse onus: it is presumed that the remuneration disclosure reason was substantial unless the employer proves otherwise on the balance of probabilities.

Background and policy context

The Bill responds to ongoing concerns about “pay secrecy” clauses commonly found in employment agreements, which may deter or penalise employees for discussing remuneration. While such clauses remain lawful, this Bill would prevent employers from taking adverse action in response to pay-related discussions.

Significance and implications

The Bill promotes transparency by encouraging open conversations about remuneration, which can help to expose and challenge discriminatory pay practices.

It empowers workers by providing legal protections for employees who voluntarily disclose or seek information about pay.

The Bill aligns with international standards, reflecting a growing global trend toward greater pay transparency in employment law.

Although it is not a direct mechanism for closing pay gaps, the Bill facilitates pay equity monitoring by removing barriers to information sharing and enabling greater scrutiny and reform.

Next steps

On 30 July 2025, the Bill passed the committee of the whole House stage. It now awaits its third reading. If passed, it will proceed to receive royal assent and become law in New Zealand.

Summary

The Bill represents a progressive move towards workplace equity and transparency. By explicitly protecting employee remuneration disclosures and introducing a new personal grievance mechanism, the legislation aims to dismantle structural obstacles that obscure pay discrimination.

Supported by strong committee recommendations and public input, the Bill is a significant step in New Zealand’s broader pay equity journey.