A quiet revolution in workplace culture is gaining traction in New Zealand, and it’s happening in the corridors of Parliament. The Employment Relations (Employee Remuneration Disclosure) Amendment Bill, currently working its way through the legislative process, could fundamentally reshape how we talk about pay at work, and who gets to decide what’s “appropriate” to share.
The bill, introduced by Labour MP Camilla Belich, is deceptively simple in its wording but far-reaching in its implications. At its core, it aims to protect employees who discuss or disclose their remuneration. That means your employment agreement can no longer prevent you from telling a colleague, or even a stranger, what you earn. More importantly, if an employer retaliates because of that disclosure, the employee may be able to raise a personal grievance.
Why now? The case for transparency
To understand the context, it’s helpful to look globally. Countries like Australia, the UK, Canada, and many across Europe have already legislated against pay secrecy, recognising that one of the biggest barriers to pay equity is silence. If you don’t know what your peers earn, how can you tell if you’re being fairly paid?
In New Zealand, the gender pay gap remains stubborn -naround 8.2% according to the Stats NZ data. Ethnic pay gaps persist as well, with Māori and Pasifika workers earning significantly less than Pākehā counterparts, even in comparable roles. In this context, allowing people to talk openly about remuneration is seen by advocates as a low-cost, high-impact move that empowers workers to ask better questions and advocate for themselves.
Where things stand in Parliament
The bill passed its second reading in July 2025 with broad support from Labour, National, the Greens, and Te Pāti Māori. Notably, only ACT and New Zealand First opposed it, citing concerns about contractual freedom. According to those parties, if two consenting adults agree to keep remuneration private as part of an employment agreement, that should be their right. Supporters of the bill argue that consent is often unequal in employment relationships, and that secrecy perpetuates discrimination, intentional or not.
Practically speaking, the bill doesn’t make pay secrecy clauses illegal, but it renders them unenforceable. It also introduces a legal safeguard: if an employee is fired, demoted, or otherwise penalised after disclosing or asking about pay, the employer must prove the action was unrelated. That reversal of burden of proof is significant—it shifts the responsibility onto employers to ensure they aren’t indirectly punishing transparency.
What employers should do next
So what does this mean for employers?
First, it's time to review employment contracts. Many standard agreements still contain confidentiality clauses about pay, and while these won’t be unlawful under the new legislation, they’ll soon be meaningless. If your HR or legal teams haven’t already started auditing employment agreements, now’s the time.
Second, get ready for more open conversations. Pay transparency isn’t just about what you disclose, it’s about what you stand behind. Employees may start asking why one role pays more than another, or why someone was offered a different starting salary. That could be uncomfortable, especially for organisations that have relied on negotiation or legacy practices to determine pay.
Turning discomfort into progress
But discomfort can be a catalyst for progress. Transparent organisations tend to be more trusted, more equitable, and more likely to attract top talent. In fact, research from other countries suggests that younger generations now expect openness around pay, not as a perk, but as a baseline for fairness.
Of course, there are nuances. It’s unlikely that everyone will feel equally confident talking about their salaries. As one employment lawyer noted, “This could be awkward for employees too. Not everyone wants to disclose they’re earning more, or less, than their peers.” But that discomfort isn’t a reason to maintain the status quo. It’s a sign that we’ve been taught not to talk about money, even when it’s in our best interest.
The road ahead
The bill still needs to pass its Committee of the Whole House stage and receive a third reading before becoming law. But with cross-party support already established, it seems increasingly likely that 2025 will be the year New Zealand joins the global shift toward pay transparency.
For HR leaders, now is the moment to think beyond compliance. Use this as a springboard to implement clearer, more consistent remuneration frameworks. Ensure you can explain how pay decisions are made, and more importantly, that they’re defensible. The organisations that do this well won’t just avoid legal risk. They’ll foster a culture of trust, where pay equity isn’t just a metric, it’s a value.
Because when people know what fair looks like, they’re more likely to believe they’re being treated fairly. And that belief is the foundation of every high-performing team.
