New Zealand employment law is primarily governed by the Employment Relations Act 2000 (ERA), which establishes the legal framework for the relationship between employers and employees. The law promotes good faith, fairness, and collective bargaining, aiming to balance the interests of both parties while providing mechanisms to resolve disputes.

2025 Legislative Reforms

In 2025, the Employment Relations Act is subject to ongoing reforms under the Employment Relations Amendment Bill 2025, aiming to offer more employer flexibility and certainty while refining personal grievance processes and contractor definitions.

Key Aspects of New Zealand Employment Law in 2025

  • Good Faith Emphasis: A strong emphasis on good faith in all employment dealings
  • Employment Agreement Obligations: Clear obligations on employers to keep and provide easy access to employment agreements
  • Wage Theft Protections: Increased protections against wage theft, with intentional underpayment classified as a criminal offence
  • Dismissal Law Adjustments: Including a high-income threshold filter for unjustified dismissal claims and removal of the “30-day rule” for workplaces with collective agreements
  • Ongoing Changes: Continuing modifications to personal grievance remedies, disciplinary processes, and trial periods

Recent Legislative Changes

The proposed Employment Relations Amendment Bill 2025 introduces several significant changes:

  • Greater emphasis on employer flexibility and certainty in dismissal procedures
  • Potential limitations on remedies if the employee has seriously contributed to the situation or obstructed procedural fairness
  • Employees engaged in serious misconduct may not be eligible for remedies
  • Removal of the 30-day rule for workplaces covered by collective agreements to facilitate longer trial periods
  • Clarifications around contractor and employee distinctions that redefine eligibility to raise grievances

Impact on Workplace Relations

These changes reflect the government’s commitment to creating a more balanced employment environment that supports both business needs and worker protections. Understanding these updates is crucial for both employers and employees to ensure compliance and protect their respective rights.

Stay informed about employment law changes that could affect your workplace. For personalised advice on how these reforms impact your situation, contact Employment Dispute Solutions for a consultation.