How Does the Equal Pay Amendment Act Impact New Zealand Workers?

What Is the Equal Pay Amendment Act and Why Was It Introduced?

The Equal Pay Amendment Act, enacted on May 6, 2025, is a significant change to New Zealand’s pay equity legislation. The Act was announced by the government as a response to ongoing gender pay gap issues. It aims to address the persistent gender pay gap by raising the threshold for workers to prove historically undervalued work when making a pay equity claim. The Equal Pay Amendment Bill was introduced as a legislative proposal in Parliament, building on the original Equal Pay Act.

• The amendment ensures parties follow a more structured process for assessing sex-based undervaluation.

• It affects both the public sector and private sector employees, particularly in female dominated work.

• The act clarifies review clauses and existing settlements, giving a framework to resolve claims fairly.

The Equal Pay Act serves as the foundational legislation being amended by this new bill. The Equal Pay Amendment Bill progressed through Parliament, with MPs debating its provisions and considering amendments. The Act was passed under urgency to expedite reforms to pay equity processes.

This new law reflects the government’s commitment to sustainable equity in the workforce and ensures parties can confidently assess pay amendment opportunities.

How Does the Amendment Affect Current Pay Equity Claims?

What Happens to Discontinued or Existing Claims?

In the past, different criteria were used to assess claims before the amendment, but the Equal Pay Amendment Act has resulted in 33 ongoing claims being discontinued because they no longer meet the new requirements. These claims must now be refiled under the amended act.

• Current claims need to be reviewed under the new pay amendment criteria.

• Employers and employees must agree to meet the framework for making new claims.

• Existing settlements may require adjustments to comply with the amendment act.

For guidance on handling current claims, employment lawyers in Auckland can help parties understand responsibilities and review clauses.

What Are the Key Changes Introduced by the New Law?

The Equal Pay Amendment Act introduces several changes that employers and workers must understand.

• Raises the threshold for proving historically undervalued work.

• Clarifies processes for assessing pay equity.

• Sets new requirements for both private sector and public sector employees.

• Provides a clear framework for new claims and ensures parties can resolve claims sustainably.

• Fosters innovation by encouraging new and effective approaches to resolving sex-based undervaluation claims.

These changes aim to create a better process for assessing gender pay gaps and ensuring equitable pay across the same industry.

Who Is Affected by the Equal Pay Amendment?

Which Workers Should Be Concerned?

• Female dominated workforces are primarily impacted.

• Employees in both the public sector and private sector who have ongoing or new claims.

• Employers must understand their responsibilities under the amended act to ensure compliance.

• Unions and organizations have a responsibility to support workers in navigating the new pay equity framework.

Which Employers Are Responsible for Compliance?

• Businesses across industries must adapt their pay practices and settlement procedures to comply with the amended act, ensuring their business operations align with the latest legal requirements.

• Employers need to ensure parties involved in the pay equity process understand the new requirements.

For businesses seeking expert advice, commercial lawyers in Auckland can guide the workforce through the pay amendment act requirements.

How Can Parties Confidently Assess and Make New Claims?

• Review the amended act and understand the new law framework.

• Consult experts to ensure parties follow proper procedures.

• Submit a new pay equity claim if previous claims were discontinued.

• Ensure all submissions meet the updated requirements outlined by parliament.

Working groups may be formed to help parties understand and implement the new requirements.

Parties can work with employment lawyers or family lawyers to confidently assess work and pay under the new amendments.

How Does the Act Address the Gender Pay Gap?

• By raising the threshold for claims, the amendment act ensures that pay equity is based on clear evidence of sex-based undervaluation.

• It supports sustainable and fair compensation in female dominated work.

• Promotes better assessment across the same industry and ensures parties can resolve claims effectively.

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What Is the Process for Submitting a Pay Equity Claim Under the Amended Act?

• Ensure all documentation is updated to reflect the new requirements.

• Follow the structured pay equity process for making new claims.

• Consult relevant committees or government guidance when necessary.

• Close claims that are unenforceable under the new law and focus on submitting new claims that meet the amended act.

For personalized guidance on the pay equity process, property lawyers in Auckland and immigration lawyers can provide expert advice for both employers and employees.

How Will the Amendment Act Influence Sustainable Employment Practices?

• Ensures parties understand their responsibilities under the law.

• Encourages a better process for addressing gender pay gaps.

• Supports equitable pay across industries and female dominated work.

• Helps businesses meet new legal requirements while maintaining sustainable employment practices.

Conclusion

The Equal Pay Amendment Act of May 2025 is a significant development in New Zealand employment law. It provides a clearer framework for assessing pay equity claims and ensures parties in both public and private sectors can resolve claims effectively. Workers and employers must understand the new requirements and adjust current and future claims to comply with the amended act. Consulting legal experts can help parties confidently navigate this updated process.

For expert assistance with pay equity claims or to ensure compliance with the new law, visit Surani Associates.

Works Cited

New Zealand Government. Equal Pay Amendment Act 2025. Parliamentary Library, 2025. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/equal-pay-amendment-act-2025/

New Zealand Ministry for Women. Pay Equity Guidance. Ministry for Women, 2025. https://women.govt.nz/work-skills/pay-equity

Employment New Zealand. Understanding Pay Equity Claims. Employment New Zealand, 2025. https://www.employment.govt.nz/ending-employment/pay-equity/

Frequently Asked Questions

What is the Equal Pay Amendment Act?

It is legislation passed in May 2025 that raises the threshold for proving historically undervalued work in New Zealand.

Who needs to refile their claims?

Workers whose current pay equity claims were discontinued must refile under the new criteria.

Does the amendment affect public sector employees?

Yes, the amendment applies to both public sector and private sector employees.

How can employers ensure compliance?

Employers should review the amended act, adjust pay practices, and consult legal experts to meet new requirements.

Where can I get help with a pay equity claim?

Surani Associates provides expert guidance for workers and employers navigating the pay equity process in New Zealand. Visit their employment lawyers page for assistance.