New Workplace Rules in 2025

These reforms aim to enhance transparency, simplify compliance, and address longstanding issues in employment law. Here's an overview of the key 2025 changes

Employment Leave Act (Proposed)

In September 2025, the government announced plans to repeal the Holidays Act 2003 and replace it with the Employment Leave Act. This proposed legislation seeks to simplify leave entitlements and payment processes, addressing complexities that have burdened employers and employees alike. Key features include:

• Continuous Leave Accrual: Annual and sick leave will accrue in hours from day one, rather than as lump sum entitlements.
• Hourly Leave Usage: Employees can take leave in hourly increments, providing greater flexibility.
• Proportional Sick Leave: Sick leave will be earned in direct proportion to contracted hours.
• Casual Employment Compensation: Casual employees and those working additional hours will receive a 12.5% upfront leave compensation in lieu of accrual.

·          A 24-month implementation period will follow the passing of the bill, allowing employers time to adjust. MBIE

Employment Relations (Employee Remuneration Disclosure) Amendment Act 2025

Effective from 27 August 2025, this amendment prohibits employers from taking adverse actions, such as dismissal or demotion, against employees who discuss or disclose their pay. The aim is to promote pay transparency and address pay discrimination. This change adds a new ground for raising a personal grievance under the Employment Relations Act. Employment New Zealand

Access to Employment Agreements

Starting 30 April 2025, employers are required to ensure employment agreements are "readily accessible." If an employee requests a copy, it must be provided within seven working days. This measure enhances transparency and helps prevent disputes regarding contract terms.

Equal Pay Amendment Act 2025

Passed on 6 May 2025, this Act raises the threshold for workers to prove historically undervalued work when making a pay equity claim. It redefines work predominantly performed by female employees as work performed by a workforce consisting of at least 70% females and limits the timeframe for raising pay equity claims to within 10 years after a settlement. This change affects both individual and union-led claims. 

Wage Theft Criminalization

As of March 2025, withholding wages without justification is considered wage theft and is subject to criminal prosecution. Employers must ensure timely and full payment of wages to avoid legal repercussions.

Summary for Employers

Employers must stay informed and compliant with these legislative changes:

• Review current leave policies and payroll systems.
• Update employment agreements to ensure they are readily accessible and reflect the latest legal requirements.
• Implement practices that promote pay transparency to comply with the new remuneration disclosure laws.

Staying proactive in these areas will help mitigate legal risks and foster a fair and compliant workplace.