Employment legislation updates you need to be across
Employment law changes have been making plenty of headlines this year. We know it can be tricky to keep up when HR isn’t your everyday focus. To make things easier, here’s a quick recap of the changes already in effect and the steps you may still need to take to stay fully compliant.
Intentionally withholding Wages
The Crimes (Theft by Employer) Amendment Act 2025, now makes it criminal offence for an employer to owe or intentionally not pay wages/holiday pay to an employee (without reasonable excuse).
What you need to do now:
- Ensure any underpayments are fixed promptly and transparently.
- Review payroll processes for accuracy and timeliness.
- Clearly document reasons for any disputed or withheld payment to show “reasonable excuse”.
Employment Agreements – Readily available
Under an amendment to the Employment Relations Act 2000, an employer must retain a copy of each employee’s individual employment agreement (or terms and conditions) or an “intended agreement” even if unsigned. The employer’s copy must be readily accessible, and the employee cannot be the only copy holder. If the employee requests a copy, the employer must provide it “as soon as is reasonably practicable” but within 7 days.
What you need to do now:
- Ensure all signed agreements (including variations) are stored in a central, searchable system.
- Audit older files and fill any gaps.
- Update onboarding processes to ensure agreements are stored at the time of signing.
- Train admin staff on turnaround obligations.
Employees Discussing Pay
Under the Employment Relations (Employee Remuneration Disclosure) Amendment Act 2025, employees are now protected from employer discipline f they discuss or disclose their own pay, ask about someone else’s pay, or participate in a pay-related conversation.
What you need to do now:
- Check pay clauses in employment agreements for reference to adverse action if pay information is disclosed as these will need updating.
- Update handbooks and policies so managers and team leads know employees can discuss pay.
- Train managers so they do not discipline, discourage, or react negatively to pay discussions.
- Ensure performance or disciplinary processes cannot be connected to pay conversations.
Pay Deductions for Partial Strikes
Under an amendment to the Employment Relations Act, employers are now allowed to deduct pay in relation to “partial strikes” (i.e., employees attend work but reduce output) by either a 10% deduction or a proportional deduction.
What you need to do now:
- Update payroll systems to enable partial-strike deductions.
- Create a standard notification template for informing employees of proposed deductions.
- Train payroll and managers on identifying “partial strike activity”.
- Update industrial action policies to reflect the new rules.
Don’t forget the new KiwiSaver contribution rates will automatically increase from 1 April 2026 to 3.5% for both employees and employers. You can apply for a temporary rate reduction from 1 February 2026 if you want to carry on contributing at 3% from 1 April 2026 and more information can be found on the IRDs website. The default KiwiSaver contribution rate will rise again to 4% (from 3.5%) on 1 April 2028.
For tailored advice and practical guidance on your compliance obligations, feel free to reach out to us at hello@hellomonday.co.nz or give us a call on 09 377 5200.