Last month, Parliament passed the Employment Relations (Employee Remuneration Disclosure) Amendment Act, introducing new rules around pay transparency. 

In simple terms, employers can no longer take disciplinary action against an employee for discussing their pay or asking about someone else’s. This applies even if the Employment Agreement contains a pay secrecy clause. 

This brings New Zealand in line with countries such as Australia and is aimed at reducing unfair pay gaps — particularly those affecting women, Māori, Pasifika, and other groups at higher risk of pay inequities. 

What Does This Mean in Practice? 

Personal Grievances 

• A new ground for raising a personal grievance has been created: “adverse conduct for a remuneration disclosure.” In other words, if an employee is treated unfairly because they discussed pay, they may have a valid claim. This could include: 
• Dismissal or constructive dismissal 
• Withholding of benefits, promotions, or training opportunities 
• Comparably unfavourable terms  
• Any action that disadvantages the employee 

Employment Agreements 

• While you can still include pay secrecy clauses, they are not enforceable. Any attempt to enforce them could expose you to legal risk. 

Voluntary Disclosure 

• Neither employees nor employers are required to disclose pay. The law simply protects employees from being penalised if they choose to discuss it. 

What Should Employers Do? 

You don’t have to take immediate action, but there are some smart steps worth considering: 

1. Back Your Pay Rates 

Assume employees will talk about what they earn. If you had to defend your pay decisions, could you? Rates should align with the role and the individual’s skills. Now is a good time to audit pay across your team: 

• Are similar roles paid fairly? 
• Have recent hires disrupted internal equity? 
• Do you have clear reasons behind differentials? 

If things look out of balance, address it proactively. If they are fair, be ready to articulate why. 

2. Rethink Pay Secrecy Clauses 

Ask yourself: why keep a clause that is unenforceable? Retaining it can undermine trust and create a culture of fear. Instead, build confidence by setting rates you can stand behind. 

3. Build Transparency into Your Pay Structures 

Consider ways to make pay processes clearer and more consistent: 

• Do you have pay bands for each role? 
• What objective criteria guide pay increases? 
• Is there a ceiling for certain roles? 

These structures can take the heat out of pay conversations and set clear expectations. 

How EASI NZ Can Help 

At EASI NZ, we help employers design roles and systems that make performance measurable and pay decisions defensible. From clear job outcomes and robust review processes to practical paperwork, we’ll support you to: 

• Audit and balance pay rates, 
• Build structures that promote fairness, 
• Create an environment where pay conversations can happen openly and confidently. 

That way, employee discussions about remuneration become something you can welcome — not fear.