Seven Law Updates.
Employment Law Update
Mid-2025 – What You Need to Know
The past few months have brought a number of important changes to employment law in New Zealand. Below is a summary of what’s in effect now, and what’s on the horizon, so you can stay compliant and plan ahead.
Access to Employment Agreements
Employers must now keep accessible copies of all employees’ employment agreements. If requested, you must provide a copy within 7 working days.
What this means for you:
Ensure agreements are stored securely but can be quickly accessed when needed.
Effective: 30 March 2025
Minimum Wage Increases
Adult minimum wage: $23.50 per hour (up from $23.15)
Starting-out / training wage: $18.80 per hour (up from $18.52)
Action point:
Review and update payroll systems to reflect the new rates.
Effective: 1 April 2025
Intentional Underpayment Now a Criminal Offence
Deliberately withholding wages—including final pay delays or unauthorised deductions—can now lead to criminal prosecution under the Crimes Act.
Key takeaway:
Employers must ensure wages are paid in full and on time.
Effective: 13 March 2025
Parental Leave Clarifications
Preterm baby payments are in addition to standard leave entitlements. Primary carers remain eligible for payments, even if they stop working soon after becoming the caregiver.
Benefit:
Provides stronger protections for families with preterm babies.
Effective: Mid-2025
Pay Equity Claims Disrupted
The Pay Equity Amendment Act has cancelled 33 active claims, particularly affecting female-dominated sectors such as health, education, and social services.
Impact:
Existing equity strategies may need to be reconsidered.
Effective: 7 May 2025
Proposed Employment Relations Amendments (Not Yet Law)
A new Amendment Bill has been introduced. Key proposals include:
- Contractor vs. employee clarity: A new four-part “gateway” test for contractor status.
- High-income threshold: Employees earning over $180,000 may lose the right to claim unjustified dismissal, unless their contract provides otherwise.
- Removal of 30-day rule: New employees can negotiate individual terms immediately, even if covered by a collective agreement.
- Grievance remedies: Compensation and reinstatement may be reduced or removed where misconduct contributed to the grievance.
Next steps:
Monitor the Bill as it progresses. Employers may wish to plan ahead for contract and policy changes.
What You Should Do Now
- Update payroll to reflect new minimum wages.
- Keep employment agreements organised and accessible.
- Review termination and dismissal provisions for high-earning employees.
- Stay alert to the progress of the Amendment Bill.
- Reassess pay equity strategies if operating in affected sectors.
Need support?
At Seven, Workplace Relations, we can help review contracts, update HR policies,
and guide you through these changes so you stay compliant and protected.
Get in touch if you’d like tailored advice for your workplace.
