Employment Relations (Pay Deductions for Partial Strikes) Amendment Act 2025
Version updated on 11 July 2025 to make an editorial change to section 2.
Employment Relations (Pay Deductions for Partial Strikes) Amendment Act 2025
Public Act |
2025 No 35 |
|
Date of assent |
30 June 2025 |
|
Commencement |
see section 2 |
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Employment Relations (Pay Deductions for Partial Strikes) Amendment Act 2025.
2 Commencement
This Act comes into force on 1 July 2025.
Section 2: editorial change made by the PCO, on 11 July 2025, under sections 86(1) and 87(m) of the Legislation Act 2019 (2019 No 58).
3 Principal Act
This Act amends the Employment Relations Act 2000.
Part 1 Amendments to principal Act
4 Section 80 amended (Object of this Part)
After section 80(ba), insert:
(bb)
to provide for specified pay deductions, including how the amount of such deductions must be calculated; and
5 New section 82AA inserted (Meaning of partial strike and specified pay deduction)
After section 82, insert:
82AA Meaning of partial strike and specified pay deduction
In this Act,—
partial strike means a strike in which the employees who are party to the strike do one or both of the following:
(a)
continue to perform some work for their employer or employers during the strike instead of wholly discontinuing their employment during the strike, and includes, without limitation,—
(i)
a partial discontinuance of work through a refusal or failure to accept engagement for work that forms part of the employees’ normal duties:
(ii)
a reduction in the employees’ normal performance of work, normal output, or normal rate of work:
(b)
break their employment agreement, whether or not the act involves any reduction in the employees’ normal duties, normal performance of work, normal output, or normal rate of work
specified pay deduction means a deduction—
(a)
made, or to be made, from an employee’s salary or wages in accordance with section 95A; and
(b)
calculated—
(i)
in accordance with section 95C(1) and (2); or
(ii)
by imposing a flat rate of 10% under section 95C(3).
6 Section 86A amended (Notice of strike)
Replace section 86A(2)(b)(ii) with:
(ii)
the nature of the proposed strike, including—
(A)
whether or not the proposed action will be continuous; and
(B)
whether or not the employees will continue to perform some work for their employer while undertaking the proposed action; and
7 Section 90 amended (Strikes in essential services)
Replace section 90(3)(b) with:
(b)
the nature of the proposed strike, including—
(i)
whether or not the proposed action will be continuous; and
(ii)
whether or not the employees will continue to perform some work for their employer while undertaking the proposed action; and
8 Section 93 amended (Procedure to provide public with notice before strike in certain passenger transport services)
Replace section 93(2)(b) with:
(b)
the nature of the proposed strike, including—
(i)
whether or not the proposed action will be continuous; and
(ii)
whether or not the employees will continue to perform some work for their employer while undertaking the proposed action; and
9 New sections 95A to 95G and cross-headings inserted
After section 95AA, insert:
Specified pay deductions in relation to partial strike
95A Employer may make specified pay deductions in relation to partial strike
(1)
If there is a partial strike, the employer may make a specified pay deduction from the salary or wages of an employee who is a party to the strike.
(2)
However, the employer must not make a specified pay deduction—
(a)
if the partial strike is lawful on the grounds referred to in section 84 (which relates to lawful strikes on the grounds of safety or health); or
(b)
if—
(i)
the employee is paid by piece work; and
(ii)
the partial strike results in the employee reducing their normal output; or
(c)
in respect of any period of the partial strike that involves—
(i)
a refusal to work overtime; or
(ii)
a refusal to perform call-out work if the employee would otherwise receive a special payment for performing that work.
(3)
Before making any deduction, the employer must comply with the notice requirements in section 95B.
(4)
The amount of the deduction must be calculated in accordance with section 95C.
(5)
To avoid doubt, a deduction under this section—
(a)
may relate only to the employee’s salary or wages that are payable for the day of the partial strike or the period of the partial strike (whichever applies under section 95C):
(b)
does not require an employer to have suspended or locked out the employee.
95B Notice of specified pay deduction
(1)
If an employer intends to make specified pay deductions in relation to a partial strike, the employer must give notice to each employee who is, or will be, party to the strike that the employer will make those deductions.
(2)
A notice under subsection (1) may be given only if the employer has received notice of the partial strike in accordance with this Part or section 589 of the Education and Training Act 2020 (whichever applies).
(3)
A notice under subsection (1) must—
(a)
be in writing; and
(b)
specify the relevant pay period or relevant pay periods in respect of which the employer will make a deduction; and
(c)
be given—
(i)
as soon as is reasonably practicable; and
(ii)
before the first deduction is made or the end of the first relevant pay period specified under paragraph (b) (whichever comes first).
(4)
If 2 or more of the employer’s employees are parties to a partial strike, the employer may, instead of giving notice to each of those employees, give notice under this section by—
(a)
providing a single notice to all those employees or their union; or
(b)
providing a notice to each of those employees, with the same wording in each notice.
(5)
To avoid doubt,—
(a)
an employer may choose the method of giving notice under this section:
(b)
the validity of a notice is not affected merely because it is also given to employees who are not subject to the specified pay deduction (for example, non-striking employees):
(c)
if the partial strike continues over more than 1 pay period, the employer is not required to give notice more than once:
(d)
a notice under this section is not required to specify the amount or proportion of a specified pay deduction:
(e)
the validity of a notice is not affected if the employer recovers a specified pay deduction as an overpayment under section 6 of the Wages Protection Act 1983.
(6)
In this section, relevant pay period means a pay period within which an employee will, in the normal course of events, be paid for a period within which a partial strike, or part of a partial strike, occurred.
95C Calculation of specified pay deduction
(1)
An employer must calculate the amount of a specified pay deduction by—
(a)
ascertaining, for the employee or group of employees, the usual hours of work for the day of the partial strike (which may be by reference to information contained in the wages and time record, the employment agreement, or a roster or any other document or record used in the normal course of the employee’s employment); and
(b)
identifying the work that the employee or employees will not be performing because of that strike (which must be by reference to the information contained in the relevant strike notice); and
(c)
estimating how much time the employee or employees would, but for the strike, have spent performing the work referred to in paragraph (b) on the day of the strike; and
(d)
calculating the time referred to in paragraph (c) as a percentage of the employee’s or employees’ usual hours of work (as ascertained for the purposes of paragraph (a)).
(2)
The percentage referred to in subsection (1)(d) is the percentage of the employee’s or employees’ salary or wages that may be deducted.
(3)
However, despite subsections (1) and (2), an employer may, instead of calculating and applying a deduction in accordance with those provisions, impose a 10% deduction on the salary or wages that are payable to the employee or employees for the period of the partial strike (which must be ascertained by reference to the information contained in the relevant strike notice), regardless of whether the amount of deduction calculated in accordance with subsection (1) would have been more or less than 10%.
(4)
An employer may calculate and apply a specified pay deduction in respect of a group of employees only if each member of the group performs work of the same, or a similar, nature.
95D Relationship between specified pay deduction and minimum wage
(1)
Section 6 of the Minimum Wage Act 1983 does not apply to an employee who receives payment at less than the applicable minimum rate of wages prescribed under section 4, 4A, or 4B of that Act if the payment—
(a)
is the result of a specified pay deduction; or
(b)
is, in the case of an employee who is paid by piece work, the result of—
(i)
the employee being party to a partial strike; and
(ii)
the employee’s normal output being reduced because of the employee being party to that partial strike.
(2)
Subsection (1)(a) applies only in relation to a period during which deductions may be made under sections 95A to 95C.
Rights of union in relation to specified pay deductions
95E Union may request information about application or calculation of specified pay deduction
(1)
This section applies if an employee or a group of employees considers that the employer has incorrectly applied or calculated a specified pay deduction in relation to that employee or those employees.
(2)
The union representing that employee or those employees may request that the employer provide the union with the information relied on to apply or calculate the specified pay deduction under section 95A.
(3)
A request under subsection (2) must—
(a)
be in writing; and
(b)
be made as soon as is reasonably practicable after the pay day on which the deduction was first made.
(4)
To avoid doubt, this section does not permit an employee, or a group of employees, to request the information from the employee’s, or employees’, employer.
95F Employer must respond to request for information about application or calculation of specified pay deduction
(1)
If an employer has received a request under section 95E, the employer must provide the union with—
(a)
all information relied on by the employer to apply or calculate the specified pay deduction under section 95A; and
(b)
an explanation of how the calculation under section 95C(1) and (2), or the 10% deduction under section 95C(3), was applied to make the deduction from the employee’s or employees’ salary or wages under section 95A.
(2)
The employer must provide the information and explanation—
(a)
in writing; and
(b)
as soon as is reasonably practicable after the employer receives the request.
95G Resolution of problem relating to specified pay deduction
(1)
This section applies if an employee or group of employees considers that the employer has—
(a)
incorrectly applied, notified, calculated, or recovered a specified pay deduction in relation to that employee or those employees (including incorrectly notified recovery of an overpayment):
(b)
failed to comply with section 95F.
(2)
The union, on behalf of that employee or those employees, must give the employer notice of that fact, and the matter must be dealt with as an employment relationship problem.
(3)
However, if the notice concerns the application or calculation of the specified pay deduction, the notice may be given only if—
(a)
the union has complied with section 95E; and
(b)
either—
(i)
the employer has failed to comply with section 95F; or
(ii)
the employer has complied with section 95F and the employee or group of employees has considered the information and explanation provided.
(4)
The union must provide the notice—
(a)
in writing; and
(b)
as soon as is reasonably practicable after the union becomes aware that the employee or group of employees considers that the employer has incorrectly applied, notified, calculated, or recovered a specified pay deduction or failed to comply with section 95F.
(5)
If the employer and the union are unable to resolve the problem (including by way of mediation), the union may lodge an application with the Authority in accordance with section 158.
10 Section 100 amended (Jurisdiction of court in relation to injunctions)
(1)
After section 100(1)(b), insert:
(c)
to stop a specified pay deduction that is being, or is to be, made.
(2)
After section 100(2)(b), insert:
(c)
to stop a specified pay deduction that is being, or is to be, made.
(3)
After section 100(3), insert:
(4)
Subsection (5) applies if any action or proceedings seeking the grant of an injunction to stop a specified pay deduction that is being, or is to be, made are commenced in the court, and the court is satisfied that—
(a)
the employer is entitled to make a deduction under section 95A; and
(b)
notice has been given in accordance with section 95B; and
(c)
the deduction has been correctly calculated in accordance with section 95C.
(5)
If the court is satisfied of the matters specified in subsection (4)(a) to (c),—
(a)
the court must dismiss that action or those proceedings; and
(b)
no proceedings seeking the grant of an injunction to stop that specified pay deduction may be commenced in the District Court or the High Court.
11 Section 161 amended (Jurisdiction)
After section 161(1)(l), insert:
(la)
any proceedings related to a partial strike (other than those founded on tort or seeking an injunction):
12 Schedule 1AA amended
In Schedule 1AA,—
(a)
insert the Part set out in the Schedule of this Act as the last Part; and
(b)
make all necessary consequential amendments.
Part 2 Consequential amendments to other Acts
Consequential amendments to Wages Protection Act 1983
13 Principal Act
Section 14 amends the Wages Protection Act 1983.
14 Section 6 amended (Employer may recover overpayments in certain circumstances)
(1)
In section 6(1), definition of recoverable period, after “pay any wages”
, insert “or, if the employer is entitled to make a specified pay deduction, any part of any wages”
.
(2)
In section 6(1), insert in its appropriate alphabetical order:
specified pay deduction has the same meaning as in section 82AA of the Employment Relations Act 2000
(3)
After section 6(3)(b), insert:
(ba)
in the case of an overpayment that relates to a specified pay deduction, that notice—
(i)
is given no later than 10 working days after the pay day on which the overpayment was made; and
(ii)
specifies the method that the employer used to calculate the deduction (being either the method specified in section 95C(1) and (2) of the Employment Relations Act 2000 or the method specified in section 95C(3) of that Act); and
Consequential amendments to Education and Training Act 2020
15 Principal Act
Sections 16 to 18 amend the Education and Training Act 2020.
16 Section 586 amended (Negotiation of conditions of employment)
In section 586(3), replace “suspend striking employees”
with “suspend, or make specified pay deductions in respect of, striking employees”
.
17 Section 587 amended (Public Service Commissioner’s powers when collective agreements are negotiated)
(1)
Replace section 587(2) with:
(2)
To avoid doubt and without limiting subsection (1), the powers referred to in that subsection include the power to—
(a)
lock out employees:
(b)
suspend employees:
(c)
make specified pay deductions.
(2)
After section 587(4), insert:
(4A)
In any case where the Public Service Commissioner intends to make a specified pay deduction, the Commissioner may give a direction that a specified pay deduction is to be made.
(3)
In section 587(5), after “subsection (4)”
, insert “or (4A)”
.
(4)
In section 587(6), after “subsection (4)(b)”
, insert “or (4A)”
.
18 Section 589 amended (Strikes in schools to be notified)
Replace section 589(2)(a) with:
(a)
the nature of the proposed strike, including—
(i)
whether or not the proposed action will be continuous; and
(ii)
whether or not the employees will continue to perform some work for their employer while undertaking the proposed action; and
Schedule New Part 7 inserted into Schedule 1AA
Part 7 Provisions relating to Employment Relations (Pay Deductions for Partial Strikes) Amendment Act 2025
23 Employer may not make specified pay deductions for partial strikes that occurred before commencement
(1)
In this Part, 2025 amendment Act means the Employment Relations (Pay Deductions for Partial Strikes) Amendment Act 2025.
(2)
Section 95A of this Act (as inserted by the 2025 amendment Act) does not apply in relation to—
(a)
a partial strike that ended before the commencement of the 2025 amendment Act; or
(b)
any period of a partial strike that occurred before the commencement of the 2025 amendment Act.
Legislative history
9 December 2024 |
Introduction (Bill 104–1) |
|
10 December 2024 |
First reading and referral to Education and Workforce Committee |
|
14 April 2025 |
Reported from Education and Workforce Committee (Bill |
|
104–2) |
||
25 May 2025 |
Second reading |
|
24 June 2025 |
Committee of the whole House, third reading |
|
30 June 2025 |
Royal assent |
This Act is administered by the Ministry of Business, Innovation, and Employment.