{"id":9813,"date":"2025-10-02T03:00:21","date_gmt":"2025-10-02T03:00:21","guid":{"rendered":"https:\/\/adventark.co.nz\/?p=9813"},"modified":"2026-05-28T19:09:55","modified_gmt":"2026-05-28T19:09:55","slug":"new-law-makes-pay-secrecy-clauses-unenforceable","status":"publish","type":"post","link":"https:\/\/adventark.co.nz\/zh\/new-law-makes-pay-secrecy-clauses-unenforceable\/","title":{"rendered":"New Law Makes Pay Secrecy Clauses Unenforceable"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;Page Title Section&#8221; _builder_version=&#8221;4.20.0&#8243; use_background_color_gradient=&#8221;on&#8221; background_color_gradient_stops=&#8221;#313e47 0%|rgba(49,62,71,0.5) 100%&#8221; background_color_gradient_overlays_image=&#8221;on&#8221; background_color_gradient_start=&#8221;#313e47&#8243; background_color_gradient_end=&#8221;rgba(49,62,71,0.5)&#8221; background_image=&#8221;https:\/\/adventark.co.nz\/wp-content\/uploads\/2025\/10\/iStock-1383853278-scaled.jpg&#8221; width=&#8221;100%&#8221; custom_margin=&#8221;|2px||||&#8221; custom_padding=&#8221;50px||50px||false|false&#8221; border_radii=&#8221;off|10px|10px||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row admin_label=&#8221;Page Title Area&#8221; _builder_version=&#8221;4.20.0&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width_tablet=&#8221;&#8221; width_phone=&#8221;&#8221; width_last_edited=&#8221;on|phone&#8221; max_width_tablet=&#8221;&#8221; max_width_phone=&#8221;&#8221; max_width_last_edited=&#8221;on|phone&#8221; custom_margin=&#8221;|auto||auto|false|false&#8221; custom_margin_tablet=&#8221;&#8221; custom_margin_phone=&#8221;|auto|||false|false&#8221; custom_margin_last_edited=&#8221;on|phone&#8221; module_alignment_tablet=&#8221;&#8221; module_alignment_phone=&#8221;center&#8221; module_alignment_last_edited=&#8221;on|phone&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Page Title&#8221; _builder_version=&#8221;4.20.0&#8243; text_font=&#8221;||||||||&#8221; text_text_color=&#8221;#ffffff&#8221; text_font_size=&#8221;18px&#8221; text_line_height=&#8221;2em&#8221; header_font=&#8221;Prata||||||||&#8221; header_font_size=&#8221;60px&#8221; header_line_height=&#8221;1.6em&#8221; header_3_font=&#8221;||||||||&#8221; header_3_line_height=&#8221;1.8em&#8221; text_orientation=&#8221;center&#8221; background_layout=&#8221;dark&#8221; max_width=&#8221;799px&#8221; module_alignment=&#8221;center&#8221; custom_margin=&#8221;|0px|10px||false|false&#8221; custom_padding=&#8221;|0px||||&#8221; animation_style=&#8221;fade&#8221; header_font_size_tablet=&#8221;40px&#8221; header_font_size_phone=&#8221;&#8221; header_font_size_last_edited=&#8221;on|desktop&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h1>New Law Makes Pay Secrecy Clauses Unenforceable<\/h1>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;Quote Section&#8221; _builder_version=&#8221;4.20.0&#8243; custom_margin=&#8221;||-3px|||&#8221; custom_padding=&#8221;52px|0px|0px|0px||&#8221; hover_enabled=&#8221;0&#8243; border_color_all=&#8221;rgba(255,186,96,0.6)&#8221; border_width_right=&#8221;8vw&#8221; border_color_right=&#8221;#D6D6D6&#8243; border_width_right_tablet=&#8221;&#8221; border_width_right_phone=&#8221;0vw&#8221; border_width_right_last_edited=&#8221;on|phone&#8221; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;][et_pb_row column_structure=&#8221;3_4,1_4&#8243; admin_label=&#8221;Quote Area&#8221; _builder_version=&#8221;4.16&#8243; use_custom_width=&#8221;on&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;3_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Author Name&#8221; _builder_version=&#8221;4.16&#8243; text_font=&#8221;|600||on|||||&#8221; text_text_color=&#8221;#e32526&#8243; text_letter_spacing=&#8221;4px&#8221; header_font=&#8221;||||||||&#8221; header_4_font=&#8221;||||||||&#8221; module_alignment=&#8221;center&#8221; animation_style=&#8221;slide&#8221; animation_direction=&#8221;bottom&#8221; animation_intensity_slide=&#8221;10%&#8221; animation_starting_opacity=&#8221;100%&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>&#8211; Insights<\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.20.0&#8243; text_font=&#8221;Roboto Slab||||||||&#8221; text_font_size=&#8221;17px&#8221; text_letter_spacing=&#8221;1px&#8221; text_line_height=&#8221;1.8em&#8221; header_font=&#8221;||||||||&#8221; header_3_font=&#8221;||||||||&#8221; header_3_line_height=&#8221;1.6em&#8221; header_4_font=&#8221;||||||||&#8221; custom_margin=&#8221;|||&#8221; custom_padding=&#8221;||15px|30px||&#8221; animation_style=&#8221;fade&#8221; animation_starting_opacity=&#8221;100%&#8221; border_color_all=&#8221;#313e47&#8243; border_width_left=&#8221;10px&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>On 27 August 2025, the Employment Relations (Employee Remuneration Disclosure) Amendment Act 2025 came into force, making pay secrecy clauses in employment contracts unenforceable.<\/p>\n<p>Before this change, employers could include provisions in employment agreements that prevented employees from discussing their salaries with colleagues. This amendment marks a shift toward greater pay transparency and protects employees who choose to discuss or disclose their remuneration.<\/p>\n<p>Below is an overview of the changes, what they mean in practice, and the steps organisations and individuals could consider.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;Project Analysis Section&#8221; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;0px||13px|||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row admin_label=&#8221;Our Process Area&#8221; _builder_version=&#8221;4.20.0&#8243; custom_padding=&#8221;0px|0px|4px|0px||&#8221; border_color_all=&#8221;rgba(51,51,51,0.12)&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.20.0&#8243; text_font=&#8221;||||||||&#8221; header_font=&#8221;||||||||&#8221; header_3_font=&#8221;Roboto Slab||||||||&#8221; header_3_line_height=&#8221;2em&#8221; custom_margin=&#8221;||0px||false|false&#8221; custom_padding=&#8221;40px||0px||false|false&#8221; animation_style=&#8221;fold&#8221; animation_direction=&#8221;left&#8221; animation_intensity_fold=&#8221;5%&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3>Key provisions<\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.20.0&#8243; text_font_size=&#8221;16px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;0px||0px||false|false&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><em>Protection for remuneration disclosure<\/em><\/p>\n<p>Under the new law, employees are expressly protected when they:<\/p>\n<ul>\n<li>\u2022 Discuss their remuneration with others (whether or not they reveal the actual amount);<br \/>\u2022 Inquire about another person\u2019s remuneration;<br \/>\u2022 Participate in discussions with others about remuneration; or<br \/>\u2022 Receive an inquiry from another person about remuneration.<\/li>\n<\/ul>\n<p>Employers cannot penalise or take legal action against employees for these activities. However, it is worth noting that the law does not compel employees to disclose their pay if they prefer not to.<\/p>\n<ul><\/ul>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=&#8221;Our Process Area&#8221; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;0px|0px|4px|0px||&#8221; border_color_all=&#8221;rgba(51,51,51,0.12)&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.20.0&#8243; text_font=&#8221;||||||||&#8221; header_font=&#8221;||||||||&#8221; header_3_font=&#8221;Roboto Slab||||||||&#8221; header_3_line_height=&#8221;2em&#8221; custom_margin=&#8221;||0px||false|false&#8221; custom_padding=&#8221;15px||0px||false|false&#8221; animation_style=&#8221;fold&#8221; animation_direction=&#8221;left&#8221; animation_intensity_fold=&#8221;5%&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3>New ground for a personal grievance<\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.20.0&#8243; text_font_size=&#8221;16px&#8221; custom_margin=&#8221;||0px||false|false&#8221; custom_padding=&#8221;0px||0px||false|false&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>The amendment also introduced \u201cadverse conduct for a remuneration disclosure reason\u201d as a new ground for a personal grievance under Section 103 of the Employment Relations Act.<\/p>\n<p>\u201cAdverse conduct\u201d in this context may include:<\/p>\n<p style=\"padding-left: 40px;\">\u2022 Dismissing an employee;<br \/>\u2022 Refusing or omitting to afford the employee the same terms, conditions, benefits or opportunities as others in substantially similar circumstances;<br \/>\u2022 Subjecting the employee to any detriment that comparable employees would not be subjected to; or<br \/>\u2022 Retiring the employee or requiring or causing them to retire or resign.<\/p>\n<p>To succeed in such a claim, the employee must show that a remuneration disclosure reason was a substantial reason for the employer\u2019s actions. Once this is established, the employer carries the burden of proving otherwise.<\/p>\n<p>Other confidentiality obligations (such as those relating to trade secrets or commercially sensitive information) remain enforceable, provided they do not conflict with the new legal protections for remuneration disclosure.<\/p>\n<ul><\/ul>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=&#8221;Our Process Area&#8221; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;0px|0px|4px|0px||&#8221; border_color_all=&#8221;rgba(51,51,51,0.12)&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.20.0&#8243; text_font=&#8221;||||||||&#8221; header_font=&#8221;||||||||&#8221; header_3_font=&#8221;Roboto Slab||||||||&#8221; header_3_line_height=&#8221;2em&#8221; custom_margin=&#8221;||0px||false|false&#8221; custom_padding=&#8221;15px||0px||false|false&#8221; animation_style=&#8221;fold&#8221; animation_direction=&#8221;left&#8221; animation_intensity_fold=&#8221;5%&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3>Implications<\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.20.0&#8243; text_font_size=&#8221;16px&#8221; custom_margin=&#8221;||0px||false|false&#8221; custom_padding=&#8221;0px||0px||false|false&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>With the amendment now in force, existing pay secrecy clauses or any provisions that limit discussions about remuneration (including certain confidentiality clauses) are no longer enforceable to the extent that they restrict remuneration discussions.<\/p>\n<p>Although these clauses remain valid on paper, employers cannot rely on them to discipline or penalise staff. Confidentiality provisions that do not relate to remuneration may still apply, but they cannot be used to override the protections now guaranteed under the amendment.<\/p>\n<p><em>For employers<\/em><\/p>\n<p>Employers should review and update employment agreements and internal policies to ensure compliance. Any confidentiality provisions that remain should be worded carefully to avoid conflict with the new protections. It is also important to train managers and other staff, so they understand employees\u2019 rights and do not inadvertently breach the law.<\/p>\n<p><em>For employees<\/em><\/p>\n<p>Employees should be aware of both their rights and their limits. You may now discuss or ask about pay without fear of retaliation, but you are not obliged to disclose your own pay if you do not wish to. These protections apply only to conduct occurring on or after 27 August 2025. If you believe your rights have been infringed, it is advisable to seek employment law advice promptly.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=&#8221;Our Process Area&#8221; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;0px|0px|4px|0px||&#8221; border_color_all=&#8221;rgba(51,51,51,0.12)&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.20.0&#8243; text_font=&#8221;||||||||&#8221; header_font=&#8221;||||||||&#8221; header_3_font=&#8221;Roboto Slab||||||||&#8221; header_3_line_height=&#8221;2em&#8221; custom_margin=&#8221;||0px||false|false&#8221; custom_padding=&#8221;15px||0px||false|false&#8221; animation_style=&#8221;fold&#8221; animation_direction=&#8221;left&#8221; animation_intensity_fold=&#8221;5%&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3>A step toward transparency and equality<\/h3>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.20.0&#8243; text_font_size=&#8221;16px&#8221; custom_margin=&#8221;||0px||false|false&#8221; custom_padding=&#8221;0px||0px||false|false&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>This statutory change represents a shift in how remuneration and pay equity are addressed in New Zealand workplaces. Advanced through a member\u2019s bill, it is described as a small step toward greater transparency and equality. By enabling open discussion about pay, the law aims to reduce inequities and foster fairer workplace practices.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=&#8221;Our Process Area&#8221; _builder_version=&#8221;4.16&#8243; custom_margin=&#8221;|auto|-17px|auto||&#8221; custom_padding=&#8221;0px|0px|4px|0px||&#8221; border_color_all=&#8221;rgba(51,51,51,0.12)&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=&#8221;Our Process Area&#8221; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;0px|0px|4px|0px||&#8221; border_color_all=&#8221;rgba(51,51,51,0.12)&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.20.0&#8243; text_font_size=&#8221;16px&#8221; custom_margin=&#8221;76px||37px|||&#8221; custom_padding=&#8221;0px|||||&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><em>Please note that the above is for general information only and does not constitute legal advice. You may also wish to visit the Government\u2019s page for more information about the amendment to the Employment Relations Act.<\/em><\/p>\n<p>\u00a0<em style=\"font-size: 16px;\">And if you need specific advice or wish to discuss your circumstances, feel free to talk to one of our lawyers and specialists at info@adventark.c<\/em><em style=\"font-size: 16px;\">o.nz or 09 969 1493.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;15px||30px|||&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;24px||20px|||&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; global_colors_info=&#8221;{}&#8221;][et_pb_post_nav _builder_version=&#8221;4.16&#8243; title_text_color=&#8221;#e09900&#8243; 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