On the 27 August 2025, the Employment Relations (Employee Remuneration Disclosure) Amendment Act 2025 officially come into force, marking a significant shift in how pay transparency is handled in New Zealand.

What’s Changed?

Employers can no longer include pay secrecy clauses in employment agreements. These clauses, which previously restricted employees from discussing their remuneration or benefits, are now unenforceable. This means employees are free to talk about their pay without fear of disciplinary action or retaliation.

Why Did Parliament Pass This Bill?

The legislation was introduced to promote pay equity and help eliminate discrimination based on gender, ethnicity, and disability. By removing barriers to open discussion about remuneration, the law aims to:

• Encourage transparency in workplaces
• Support fairer pay practices
• Empower employees to identify and challenge inequities

This change reflects a broader cultural shift toward inclusive and equitable employment environments.

What Employers Need to Do?

If you’re an employer in New Zealand, here’s what you should consider:

• Review and update all employment agreements to remove any pay secrecy clauses
• Update internal policies to reflect the new legal requirements
• Train managers on how to handle pay transparency conversations
• Conduct a pay equity audit to identify and address any disparities

Need Help Navigating the Change?

If you would like help updating your employment agreements and pay policies to reflect this change, or need tools to ensure your pay review methods are robust, we can help. Contact us today to discuss our tailored HR support to ensure your business remains compliant and aligned with best practice.