Equal Pay Amendment Act 2025
Version updated on 19 May 2025 to make an editorial change to section 2.
Equal Pay Amendment Act 2025
Public Act |
2025 No 21 |
|
Date of assent |
13 May 2025 |
|
Commencement |
see section 2 |
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Equal Pay Amendment Act 2025.
2 Commencement
This Act comes into force on 14 May 2025.
Section 2: editorial change made by the PCO, on 19 May 2025, under sections 86(1) and 87(m) of the Legislation Act 2019 (2019 No 58).
3 Principal Act
This Act amends the Equal Pay Act 1972.
Part 1 Amendments to Equal Pay Act 1972
4 Section 2 amended (Interpretation)
(1)
In section 2(1), definition of pay equity claim settlement, paragraph (b), replace “section 13ZH(1)(b)(ii)”
with “section 13ZH(1)(b)(ii) or (iii)”
.
(2)
In section 2(1), replace the definition of predominantly performed by female employees with:
predominantly performed by female employees—
(a)
in Part 2, in relation to work, means that the work is performed by a workforce that is at least 70% female; and
(b)
in Part 4, in relation to work to which a pay equity claim relates, means that the work—
(i)
is performed by a workforce that is at least 70% female; and
(ii)
has been performed by a workforce described in subparagraph (i) for at least 10 consecutive years immediately before the date on which the claim was raised
5 Section 2B amended (Choice of proceedings)
In section 2B(2)(c)(i) and (d)(i)(A), replace “section 13ZY(1)(d)”
with “section 13ZY(1)(i)”
.
6 Section 13A replaced (Purpose)
Replace section 13A with:
13A Purpose
The purpose of this Part is to provide a process that facilitates the resolution of pay equity claims where there is evidence of systemic sex-based undervaluation of work that is predominantly performed by female employees.
7 Section 13B amended (Interpretation)
In section 13B, insert in its appropriate alphabetical order:
appropriate comparator means a comparator selected by parties to a pay equity bargaining process in accordance with section 13ZE for use as a comparator in the assessment of a pay equity claim under section 13ZD
8 Section 13D amended (Union right to represent members)
In section 13D, replace “section 13E”
with “sections 13DA and 13E”
.
9 New section 13DA inserted (Eligibility of pay equity claim to be raised)
After section 13D, insert:
13DA Eligibility of pay equity claim to be raised
A pay equity claim may be raised if—
(a)
it meets all requirements set out in section 13E; and
(b)
there is evidence that the claim has merit (see section 13F).
10 Section 13E amended (Unions and employees may raise pay equity claims)
(1)
In the heading to section 13E, replace “Unions”
with “Circumstances in which unions”
.
(2)
In section 13E(1), delete “if they consider that the claim is arguable”
.
(3)
Repeal section 13E(1)(c)(iii).
(4)
Replace section 13E(6) with:
(6)
Despite subsection (1), a pay equity claim may not be raised within 10 years after the date of a pay equity claim settlement if the claim would relate to any or all of the employees covered by the settlement and the work to which the settlement relates, unless the Authority or the court determines, under section 13ZY(1)(b), that the claim may be raised.
11 Section 13F replaced (Meaning of arguable)
Replace section 13F with:
13F Meaning of has merit
(1)
A pay equity claim has merit if—
(a)
the claim relates to work that is predominantly performed by female employees; and
(b)
there are reasonable grounds to believe that the work—
(i)
has been historically undervalued for 1 or more of the reasons set out in subsection (2); and
(ii)
continues to be subject to systemic sex-based undervaluation, taking into account all relevant matters (including the reasons set out in subsection (3)).
(2)
The reasons for historical undervaluation of work referred to in subsection (1)(b)(i) are as follows:
(a)
the origins and history of the work, including the manner in which wages have been set:
(b)
any social, cultural, or historical factors:
(c)
characterisation of the work as women’s work:
(d)
the nature of the work requires an employee to use skills or qualities that have been—
(i)
generally associated with women; and
(ii)
regarded as not requiring monetary compensation.
(3)
The reasons for continued systemic sex-based undervaluation of work referred to in subsection (1)(b)(ii) are—
(a)
features of the relevant labour market, industry, sector, or occupation, including the following:
(i)
a dominant source of funding across the relevant labour market, industry, sector, or occupation:
(ii)
a lack of effective bargaining in the relevant labour market, industry, sector, or occupation:
(iii)
the market share of the employer as an employer in the relevant labour market:
(iv)
a lack of competition from other employers seeking to employ persons in the relevant labour market:
(v)
a lack of power on the part of employees to influence the relevant labour market:
(vi)
occupational segregation or segmentation in relation to the work:
(vii)
any other features that are prescribed in regulations; and
(b)
failure by the parties to a pay equity claim to properly assess or consider the remuneration that should be paid to properly account for—
(i)
the nature of the work; and
(ii)
the levels of responsibility associated with the work; and
(iii)
the conditions under which the work is performed; and
(iv)
the degree of effort required to perform the work.
(4)
In subsection (3)(a), relevant labour market means that part of the whole labour market that comprises all workers who, as a matter of fact and commercial common sense, are substitutable because the work they perform involves—
(a)
the same or substantially similar skills and responsibilities; and
(b)
experience under the same or substantially similar conditions; and
(c)
the same or substantially similar degrees of effort.
12 Section 13H amended (Requirements for claim raised by individual employee)
(1)
In section 13H, delete “must”
.
(2)
In section 13H(a), replace “state”
with “must state”
.
(3)
In section 13H(a)(iii), replace “occupation, position, and a brief description of the work performed by the employee”
with “occupation and position”
.
(4)
After section 13H(a), insert:
(aa)
must contain a description of the work performed by the employee, which must include any information about the work prescribed by regulations; and
(5)
Replace section 13H(b) with:
(b)
must include—
(i)
the elements required for a pay equity claim to have merit; and
(ii)
the evidence that the employee relies on in support of those elements.
13 Section 13I amended (Requirements for claim raised by union or unions)
(1)
In section 13I(1)(a)(iii), replace “include a brief description”
with “contain a description”
.
(2)
Replace section 13I(1)(b) with:
(b)
must—
(i)
explain how all of the employees to be covered by the claim perform work that is the same or substantially similar; and
(ii)
include the evidence that the union or unions rely on in support of that explanation, including any evidence prescribed by regulations; and
(ba)
must include—
(i)
the elements required for a pay equity claim to have merit; and
(ii)
the evidence that the union or unions rely on in support of those elements; and
14 Section 13K amended (Union-raised claims raised with multiple employers: employers must enter into pay equity process agreement)
Replace section 13K(2) with:
(2)
Subsection (2A) applies to each employer who—
(a)
receives a pay equity claim referred to in subsection (1); and
(b)
has not opted out of the multi-employer pay equity claim under section 13L.
(2A)
Each employer must enter into a single multi-employer pay equity process agreement—
(a)
for the purpose of deciding whether all of the employees covered by the claim perform work that is the same or substantially similar; and
(b)
for the purpose of deciding whether the claim has merit; and
(c)
for the purpose of the pay equity bargaining process.
15 Section 13L amended (Opting out of multi-employer pay equity claim)
(1)
In section 13L(1), delete “only if the employer has genuine reasons, based on reasonable grounds, to do so”
.
(2)
Replace section 13L(9) with:
(9)
A notice opting out of a multi-employer pay equity claim—
(a)
must be given in writing; and
(b)
in the case of a notice given by 1 or more unions under subsection (4) or (6), must state the genuine reasons of the union or unions for opting out and the reasonable grounds on which those reasons are based.
Party may not apply for determination concerning employer opting out
(10)
A party may not apply to the Authority under section 13ZY for a determination concerning an employer’s decision under this section to opt out of a multi-employer claim.
16 Section 13N amended (Consolidation of claim raised with additional or new employer with existing union-raised claim)
In section 13N(1), (2), and (3)(b), replace “is arguable”
with “has merit”
.
17 Section 13O amended (Process to request consent to consolidate)
(1)
In section 13O(4)(a), delete “brief”
.
(2)
In section 13O(4)(b), replace “a brief explanation”
with “an explanation”
.
(3)
After section 13O(4)(b), insert:
(c)
the evidence that the union or employer requesting the consolidation relies on in support of the explanation included under paragraph (b) (including any evidence required by regulations).
18 Section 13P amended (Effect of consolidation)
In section 13P(3), replace “identify”
with “select”
.
19 Cross-heading above section 13Q replaced
Replace the cross-heading above section 13Q with:
Employer decisions about claims
20 New sections 13PA and 13PB inserted
Before section 13Q, insert:
13PA Time limit for employer’s decisions about pay equity claim
(1)
An employer who receives a pay equity claim must, as soon as is reasonably practicable after receiving it,—
(a)
make a decision under section 13PB; and
(b)
decide under section 13Q whether, in the employer’s view, the pay equity claim has merit.
(2)
The employer must make, and give notice of, those decisions in accordance with sections 13PB, 13Q, and 13S not later than—
(a)
60 working days after the employer receives the pay equity claim; or
(b)
any extended date specified in a notice by the employer under section 13R.
(3)
This section is subject to sections 13PB(6) and 13ZZAA in the circumstances to which those provisions apply.
13PB Employer’s decision about whether claim meets requirements of section 13E
(1)
An employer who receives a pay equity claim must make a decision under this section before deciding, under section 13Q(1A), whether the claim has merit.
(2)
The employer must decide whether, in the employer’s view, the pay equity claim meets all requirements set out in section 13E.
(3)
Without limiting subsection (2), the employer must, in making the decision about a pay equity claim raised by 1 or more unions, consider and decide whether all of the employees covered by the claim perform work that is the same or substantially similar.
(4)
If an employer decides that, in the employer’s view, a pay equity claim does not meet all requirements set out in section 13E, the employer must, as soon as is reasonably practicable, give notice to the claimant that—
(a)
sets out the reasons for the employer’s decision; and
(b)
describes the effect of the decision as set out in subsection (5); and
(c)
explains the steps that the claimant may take to challenge the employer’s decision, including advice that the claimant may—
(i)
seek further details of the reasons for the employer’s decision; and
(ii)
refer the decision to mediation under section 13ZO; and
(iii)
refer the decision to the Authority for facilitation under sections 13ZP to 13ZX if 1 or both of the grounds in section 13ZR(2) exist; and
(iv)
apply to the Authority under section 13ZY for a determination on the decision and that, if the claimant does so, the Authority will first consider whether an attempt has been made to resolve the question by facilitation or mediation.
Effect of negative decision
(5)
A notice under subsection (4) has the effect of discontinuing the pay equity claim from the date on which the employer gives the notice, but the discontinuance of the claim does not prevent—
(a)
the parties from agreeing to reverse the employer’s decision; or
(b)
the claimant from applying to the Authority for a determination in relation to the employer’s decision; or
(c)
a new claim that complies with section 13DA from being raised.
Effect of reversal of negative decision
(6)
If the parties agree to reverse the employer’s decision,—
(a)
the pay equity claim is no longer discontinued; and
(b)
sections 13PA(2) and 13R(1) and (2)(a) do not apply; and
(c)
the employer must under sections 13Q and 13S make, and give notice of, the employer’s decision about whether the claim has merit not later than—
(i)
60 working days after the date on which the employer’s decision is reversed less the number of working days between the date on which the claim was received and the date on which the employer gave the notice under subsection (4); or
(ii)
any extended date beyond the period described in subparagraph (i) that is specified in a notice by the employer under paragraph (d); and
(d)
the employer may, by notice to the claimant, extend the time limit specified in paragraph (c)(i) if the employer has reasonable grounds for requiring the extension; and
(e)
a notice under paragraph (d) extending the time limit must be given as soon as is reasonably practicable and,—
(i)
if it is the first notice extending the time limit since the claim was received, not later than 60 working days after the date on which the employer’s decision is reversed less the number of working days between the date on which the claim was received and the date on which the employer gave the notice under subsection (4):
(ii)
if a previous extension of the time limit under section 13R had not expired on the date on which the employer gave notice under subsection (4), not later than 5 working days after the date of the reversal of the employer’s decision; and
(f)
section 13R(2)(b) and (c) and (3) applies to a notice under paragraph (d); and
(g)
a notice to which paragraph (e)(ii) applies may extend the time limit in paragraph (c)(i) only by the period that was remaining of the existing extension.
21 Section 13Q amended (Employer must form view as to whether pay equity claim is arguable)
(1)
Replace the heading to section 13Q with “Employer’s decision about whether claim has merit”
.
(2)
Replace section 13Q(1) with:
(1)
This section applies to an employer who has—
(a)
received a pay equity claim; and
(b)
decided under section 13PB(2) that, in the employer’s view, the claim meets all requirements set out in section 13E.
(1A)
The employer must decide whether, in the employer’s view, the pay equity claim has merit. (See section 13T for how this requirement applies to multi-employer pay equity claims.)
(3)
Repeal section 13Q(2).
(4)
In section 13Q(3), replace “is arguable”
with “has merit”
.
(5)
Replace section 13Q(4) and (5) with:
(4)
The employer is deemed to have accepted that a pay equity claim has merit if the employer fails to give notice in accordance with section 13S by the time limit set out in section 13PA(2) (or, if applicable, by the time limit set out in section 13PB(6) or 13ZZAA).
22 Section 13R amended (Notice extending time limit for employer’s decision as to whether claim arguable)
(1)
In the heading to section 13R, replace “employer’s decision as to whether claim arguable”
with “employer’s decisions about pay equity claim”
.
(2)
In section 13R(1),—
(a)
replace “section 13Q”
with “section 13PA(2)(a)”
:
(b)
replace “the employer’s decision as to whether a pay equity claim is arguable”
with “the employer’s decisions under sections 13PB and 13Q”
.
(3)
In section 13R(2), after “time limit”
, insert “may be given once only and”
.
(4)
In section 13R(2)(a), replace “45 working days”
with “60 working days”
.
(5)
After section 13R(3), insert:
(4)
This section is subject to sections 13PB(6) and 13ZZAA in the circumstances to which those provisions apply.
23 Section 13S amended (Employer’s obligations after deciding whether claim is arguable)
(1)
In the heading to section 13S, replace “is arguable”
with “has merit”
.
(2)
In section 13S(1), replace “13Q(1)”
with “13Q(1A)”
.
(3)
In section 13S(1), (2), (3), and (4), replace “is arguable”
with “has merit”
in each place.
(4)
In section 13S(1) and (4), replace “section 13Q(5)”
with “section 13Q(4)”
in each place.
(5)
In section 13S(2)(b) and (4)(b), replace “sections 13ZC to 13ZZE”
with “sections 13ZC to 13ZZC”
.
(6)
In section 13S(3), replace “is not arguable”
with “does not have merit”
.
(7)
After section 13S(3)(a), insert:
(aa)
describes the effect of the decision as set out in subsection (3A); and
(8)
After section 13S(3), insert:
(3A)
A notice under subsection (3) has the effect of discontinuing the pay equity claim from the date on which the employer gives the notice, but the discontinuance of the claim does not prevent—
(a)
the parties from agreeing to reverse the employer’s decision; or
(b)
the claimant from applying to the Authority for a determination in relation to the employer’s decision; or
(c)
a new claim that complies with section 13DA from being raised.
(3B)
If the parties agree to reverse the employer’s decision, the claim is no longer discontinued.
24 Section 13T amended (Deciding if multi-employer pay equity claim is arguable)
(1)
Replace the heading to section 13T with “Employer decisions about multi-employer pay equity claim”
.
(2)
In section 13T, replace “Sections 13Q”
with “Sections 13PA”
.
(3)
Before section 13T(a), insert:
(aaa)
the employers must make a joint decision under section 13PB(2) as to whether, in their view, the claim meets all requirements set out in section 13E and, if they decide that it does not, must give joint notice of that decision to the claimant under section 13PB(4):
(4)
In section 13T(a), replace “13Q(1)”
with “13Q(1A)”
.
(5)
In section 13T(a) and (c), replace “is arguable”
with “has merit”
in each place.
25 Section 13U amended (Employer must give notice of first arguable pay equity claim raised by individual employee)
(1)
In the heading to section 13U, replace “first arguable pay equity claim”
with “first pay equity claim that has merit”
.
(2)
In section 13U(1), (3)(d), and (5)(a), replace “is arguable”
with “has merit”
.
26 Section 13V amended (Employer must give notice of first arguable pay equity claim raised by union)
(1)
In the heading to section 13V, replace “first arguable pay equity claim”
with “first pay equity claim that has merit”
.
(2)
In section 13V(1), (3)(d), and (5)(a), replace “is arguable”
with “has merit”
.
27 Section 13Y amended (Employees may opt out of pay equity claim raised by union)
In section 13Y(2)(b), replace “section 13ZY(1)(d)”
with “section 13ZY(1)(i)”
.
28 Section 13ZB amended (Process applies to arguable claims)
(1)
In the heading to section 13ZB, replace “arguable claims”
with “claims that have merit”
.
(2)
In section 13ZB, replace “Sections 13ZC to 13ZZE”
with “Sections 13ZC to 13ZZC”
.
(3)
In section 13ZB(a) and (b), replace “is arguable”
with “has merit”
.
29 Sections 13ZD and 13ZE replaced
Replace sections 13ZD and 13ZE with:
13ZD Matters to be assessed
(1)
The parties to a pay equity claim must assess all matters set out in subsection (2)—
(a)
to determine whether, and the extent to which, the work to which the claim relates has been subject to sex-based undervaluation when compared with the valuation of the work performed by appropriate comparators; and
(b)
by reference to—
(i)
the reasons for historical undervaluation set out in section 13F(2); and
(ii)
in relation to continued systemic undervaluation, all relevant matters including the reasons set out in section 13F(3).
(2)
The matters to be assessed are as follows:
(a)
the nature of the work to which the claim relates, and the nature of the work of appropriate comparators, including, in each case, the following:
(i)
the skills required:
(ii)
the responsibilities imposed:
(iii)
the level of experience required to perform the work:
(iv)
the conditions of work:
(v)
the degree of effort required to perform the work:
(vi)
any other relevant work features:
(b)
the terms and conditions of employment (other than remuneration) of—
(i)
the persons who perform the work to which the claim relates; and
(ii)
appropriate comparators:
(c)
the remuneration that is paid to—
(i)
the persons who perform the work to which the claim relates; and
(ii)
appropriate comparators:
(d)
any other matters prescribed by regulations.
(3)
In making the assessments, the parties must—
(a)
consider matters objectively and without assumptions based on sex, taking the following into account:
(i)
prevailing views as to the value of work are not necessarily free of assumptions based on sex:
(ii)
undervaluations or other differences in remuneration that are identified are not necessarily based on sex; and
(b)
recognise the importance of skills, responsibilities, effort, and conditions that are or have been commonly overlooked or undervalued in work that is performed by a workforce that is at least 70% female (for example, social and communication skills, taking responsibility for the well-being of others, cultural knowledge, and sensitivity); and
(c)
make the determination referred to in subsection (1)(a) only by considering the work to which the claim relates since the time when that work came to be performed by a workforce that is at least 70% female.
13ZE Selecting appropriate comparators
(1)
This section sets out how parties select appropriate comparators against which to assess a pay equity claim under section 13ZD.
Method of selection: hierarchy
(2)
The parties to a pay equity claim involving 1 employer must select comparators that are most closely related to the employer by approaching the task as follows:
(a)
if the employer employs 1 or more comparators, the parties must select 1 or more of those comparators:
(b)
if the employer does not employ any comparators, the parties must select 1 or more comparators from 1 or more similar employers:
(c)
if neither paragraph (a) nor paragraph (b) applies, the parties must select 1 or more comparators from 1 or more other employers within the same industry or sector.
(3)
The parties to a multi-employer pay equity claim must select comparators that are most closely related to the employers by approaching the task as follows:
(a)
if 1 or more of the employers employ 1 or more comparators, the parties must select 1 or more comparators from 1 or more of those employers:
(b)
if none of the employers employ any comparators, the parties must select 1 or more comparators from 1 or more employers that are similar to the employers in the claim:
(c)
if neither paragraph (a) nor paragraph (b) applies, the parties must select 1 or more comparators from 1 or more other employers within the same industry or sector.
(4)
In addition to acting in accordance with subsection (2) or (3) (as applicable), the parties may, by agreement, select as a comparator the employees covered by a pay equity claim that has previously (but not before the Equal Pay Amendment Act 2025 comes into force) been raised and been the subject of a pay equity claim settlement.
Method of selection: comparators perform comparable work
(5)
A comparator selected under subsection (2) or (3) (as applicable) must be a male workforce that performs—
(a)
work that is the same as, or substantially similar to, the work to which the claim relates; or
(b)
work that is different to the work to which the claim relates, but that involves 1 or more of the following:
(i)
skills and experience that are the same as, or substantially similar to, those required to perform the work to which the claim relates:
(ii)
responsibilities that are the same as, or substantially similar to, those involved in the work to which the claim relates:
(iii)
working conditions that are the same as, or substantially similar to, those involved in the work to which the claim relates:
(iv)
degrees of effort that are the same as, or substantially similar to, those involved in the work to which the claim relates.
Exclusions
(6)
Despite subsections (2) and (3), the parties may not select a comparator if there are reasonable grounds to believe that the work performed by that comparator—
(a)
has been historically undervalued in the way described in section 13F(1)(b)(i); and
(b)
continues to be subject to systemic sex-based undervaluation in the way described in section 13F(1)(b)(ii).
(7)
Despite subsections (2) to (4), the parties may not select as a comparator a workforce that is too small to allow a meaningful comparison between its work and the work to which the claim relates.
Other prescribed considerations
(8)
When selecting comparators, the parties must take into account any additional matters prescribed by regulations.
13ZEA Employer decides no appropriate comparators available
(1)
If the employer decides that no appropriate comparators are available for selection, the employer must give notice to the claimant that—
(a)
sets out the reasons for the employer’s decision; and
(b)
describes the effect of the decision as set out in subsection (2); and
(c)
explains the steps that the claimant may take to challenge the employer’s decision, including advice that the claimant may—
(i)
seek further details of the reasons for the employer’s decision; and
(ii)
refer the decision to mediation under section 13ZO; and
(iii)
refer the decision to the Authority for facilitation under sections 13ZP to 13ZX if 1 or both of the grounds in section 13ZR(2) exist; and
(iv)
apply to the Authority under section 13ZY for a determination on the decision and that, if the claimant does so, the Authority will first consider whether an attempt has been made to resolve the question by facilitation or mediation.
(2)
A notice under subsection (1) has the effect of discontinuing the pay equity claim from the date on which the employer gives the notice, but the discontinuance of the claim does not prevent—
(a)
the parties from agreeing to reverse the employer’s decision; or
(b)
the claimant from applying to the Authority for a determination in relation to the employer’s decision; or
(c)
a new claim that complies with section 13DA from being raised.
(3)
If the parties agree to reverse the employer’s decision, the claim is no longer discontinued.
New employer decision about work covered by claim
13ZEB New decision about same or substantially similar work
(1)
An employer who is making an assessment under section 13ZD of a pay equity claim raised by 1 or more unions on behalf of 2 or more of the employer’s employees may decide that, in the employer’s view, the employees covered by the claim do not all perform work that is the same or substantially similar.
(2)
An employer—
(a)
may make a decision under subsection (1) even if the employer decided under section 13PB that, in the employer’s view, all of the employees covered by the claim perform work that is the same or substantially similar; but
(b)
may not make a decision under subsection (1) if the Authority has determined under section 13ZY that all of the employees covered by the claim perform work that is the same or substantially similar.
(3)
An employer who makes a decision under subsection (1) must give notice to the claimant that—
(a)
sets out the reasons for the employer’s decision; and
(b)
describes the effect of the decision as set out in subsection (5); and
(c)
explains the steps that the claimant may take to challenge the employer’s decision, including advice that the claimant may—
(i)
seek further details of the reasons for the employer’s decision; and
(ii)
refer the decision to mediation under section 13ZO; and
(iii)
refer the decision to the Authority for facilitation under sections 13ZP to 13ZX if 1 or both of the grounds in section 13ZR(2) exist; and
(iv)
apply to the Authority under section 13ZY for a determination on the decision and that, if the claimant does so, the Authority will first consider whether an attempt has been made to resolve the question by facilitation or mediation.
(4)
The employer may give notice under this section—
(a)
at any time before the assessment under section 13ZD is completed; but
(b)
once only.
(5)
A notice under subsection (3) has the effect of discontinuing the pay equity claim from the date on which the employer gives the notice, but the discontinuance of the claim does not prevent—
(a)
the parties from agreeing to reverse the employer’s decision; or
(b)
the claimant from applying to the Authority for a determination in relation to the employer’s decision; or
(c)
a new claim that complies with section 13DA from being raised.
(6)
If the parties agree to reverse the employer’s decision, the claim is no longer discontinued.
30 Section 13ZH amended (Settling pay equity claim)
(1)
Replace section 13ZH(1)(a)(ii) with:
(ii)
the parties agree that remuneration is to be increased to that agreed level on the date of the pay equity claim settlement or in agreed phases over a maximum period of 3 years from that date; and
(2)
In section 13ZH(1)(b), after “court”
, insert “(subject to section 13ZZC)”
.
(3)
Replace section 13ZH(1)(b)(ii) with:
(ii)
issues a determination that—
(A)
fixes remuneration that does not differentiate between male and female employees in the manner set out in section 2AAC(b); and
(B)
specifies that remuneration is to be increased in 3 annual phases of equal amounts or proportions starting at the date of the pay equity claim settlement; or
(iii)
if the parties have agreed on remuneration that does not differentiate between male and female employees in the manner set out in section 2AAC(b), but have not agreed on whether the remuneration is to be increased in phases, issues a determination—
(A)
that remuneration is to be increased to the agreed level on the date of the pay equity claim settlement; or
(B)
that remuneration is to be increased to the agreed level in phases and that specifies the number of phased instalments, their amounts or proportions, and their timing (over a maximum period of 3 years from the date of the pay equity claim settlement).
(4)
After section 13ZH(2), insert:
(2A)
The parties may not agree to review, or agree on a process for the review of, a pay equity claim settlement.
(5)
After section 13ZH(3)(b)(vi), insert:
(via)
whether remuneration is to be increased on the date of the pay equity claim settlement or in phases; and
(vib)
if remuneration is to be increased in phases, the number of phased instalments, their amounts or proportions, and their timing (over a maximum period of 3 years from the date of the pay equity claim settlement); and
(6)
31 Section 13ZK amended (Copy of pay equity claim settlement to be delivered to chief executive)
In section 13ZK(1), replace “section 13ZH(1)(b)(ii)”
with “section 13ZH(1)(b)(ii) or (iii)”
.
32 Section 13ZL amended (Offers of benefit of pay equity claim settlement to other employees)
In section 13ZL(1)(b), replace “if remuneration for past work is included in the settlement”
with “if the parties agreed to include remuneration for past work in the pay equity claim settlement”
.
33 Section 13ZN amended (Relationship between pay equity claims and collective bargaining)
In section 13ZN(2), delete “, or of an uncompleted review of a pay equity claim settlement,”
.
34 Section 13ZO amended (Parties may refer issues to mediation)
(1)
Before section 13ZO(2)(a), insert:
(aaa)
a dispute as to whether a claim meets all requirements set out in section 13E:
(2)
In section 13ZO(2)(a), replace “is arguable”
with “has merit”
.
(3)
In section 13ZO(2)(c), replace “as to whether work performed by others is comparable work”
with “relating to the selection of appropriate comparators”
.
(4)
After section 13ZO(2)(d), insert:
(da)
a dispute as to whether remuneration agreed by the parties should be increased to the agreed level in phases and, if so, as to the number of phased instalments, their amounts or proportions, and their timing (over a maximum period of 3 years from the date of the pay equity claim settlement):
(5)
Repeal section 13ZO(2)(e).
35 Section 13ZQ amended (Reference to Authority)
(1)
Before section 13ZQ(2)(a), insert:
(aaa)
a dispute about whether a claim meets all requirements set out in section 13E:
(2)
In section 13ZQ(2)(b), replace “as to whether work performed by others is comparable work”
with “relating to the selection of appropriate comparators”
.
(3)
After section 13ZQ(2)(c), insert:
(d)
a dispute about whether remuneration agreed by the parties should be increased to the agreed level in phases and, if so, as to the number of phased instalments, their amounts or proportions, and their timing (over a maximum period of 3 years from the date of the pay equity claim settlement).
(4)
After section 13ZQ(2), insert:
(2A)
A referral of the issue described in subsection (2)(c) includes the issue of the phases in which any recommended remuneration is to be increased (see section 13ZW(1A)).
(5)
Replace section 13ZQ(3) with:
(3)
Despite subsections (1) and (2), a dispute as to whether a pay equity claim has merit may only be referred to the Authority for facilitation if all of the parties to the claim agree to refer it.
36 Section 13ZR amended (When the Authority may accept reference)
Replace section 13ZR(3)(a) with:
(a)
the earlier facilitation related only to one of the following issues and the subsequent reference relates to the pay equity bargaining process:
(i)
whether the claim meets all requirements set out in section 13E:
(ii)
whether the claim has merit; or
37 Section 13ZW amended (Recommendation by Authority)
(1)
Before section 13ZW(1)(a), insert:
(aaa)
whether the claim meets all requirements set out in section 13E:
(2)
In section 13ZW(1)(a), replace “is arguable”
with “has merit”
.
(3)
After section 13ZW(1)(c), insert:
(d)
whether remuneration agreed by the parties should be increased to the agreed level in phases and, if so, the number of phased instalments, their amounts or proportions, and their timing (over a maximum period of 3 years from the date of the pay equity claim settlement).
(4)
After section 13ZW(1), insert:
(1A)
If the Authority makes a recommendation under subsection (1)(c), it must also specify that remuneration is to be increased in 3 annual phases of equal amounts or proportions starting at the date of the pay equity claim settlement (see section 13ZQ(2A)).
(1B)
If the Authority is making a recommendation under subsection (1)(d), it must take into account the matters set out in section 13ZY(7).
38 Section 13ZY replaced (Parties may apply for determination by Authority)
Replace section 13ZY with:
13ZY Parties may apply for determination by Authority
Matters the Authority may determine
(1)
A party to a pay equity claim may apply to the Authority for determination of any matter that relates to the pay equity claim, including, but not limited to, the following:
(a)
a determination as to whether the pay equity claim meets all requirements set out in section 13E other than the requirements to which paragraphs (b) and (c)(i) apply:
(b)
a determination, for the purposes of section 13E(6), as to whether a pay equity claim may be raised within 10 years after the date of a pay equity claim settlement if the claim would relate to any or all of the employees covered by the pay equity settlement and the work to which the settlement relates:
(c)
a determination as to whether, for a claim raised by 1 or more unions on behalf of 2 or more of an employer’s employees, all of the employees covered by the claim perform work that is the same or substantially similar—
(i)
for the purpose of a dispute concerning an employer’s decision under section 13PB; or
(ii)
for the purpose of a dispute concerning an employer’s decision under section 13ZEB:
(d)
a determination as to whether an employee’s work is the same as, or substantially similar to, work that is the subject of a pay equity claim raised by a union with the employee’s employer, for the purposes of determining whether or not the employee is, or is to be, covered by the claim:
(e)
a determination as to whether the pay equity claim has merit (see section 13F):
(f)
a determination as to whether the work to which the claim relates is undervalued:
(g)
a determination as to whether 1 or more comparators selected under section 13ZE are appropriate comparators:
(h)
a determination as to whether any appropriate comparators are available for selection for use in assessing a pay equity claim (see section 13ZEA):
(i)
a determination that fixes remuneration that does not differentiate between male and female employees in the manner set out in section 2AAC(b):
(j)
a determination as to whether remuneration agreed by the parties should be increased to the agreed level in phases and, if so, as to the number of phased instalments, their amounts or proportions, and their timing (over a maximum period of 3 years from the date of the pay equity claim settlement).
Authority’s obligations in making determinations
(2)
On receiving an application under subsection (1), the Authority—
(a)
must first consider whether an attempt has been made to resolve the difficulties by the use of—
(i)
mediation or further mediation under section 13ZO; or
(ii)
facilitation under sections 13ZQ to 13ZX; and
(b)
may direct the parties to try to resolve the difficulties by mediation or further mediation; and
(c)
may, if 1 or both of the grounds in section 13ZR(2) exist, direct that facilitation be used before the Authority investigates the matter, unless the Authority considers that use of facilitation—
(i)
will not contribute constructively to resolving the difficulties; or
(ii)
will not, in all the circumstances, be in the public interest; or
(iii)
will undermine the urgent nature of the process; or
(iv)
will be otherwise impractical or inappropriate in the circumstances.
(3)
Subsection (2)(c) does not apply to an application for a determination under subsection (1)(a), (b), (c)(i), or (e).
(4)
If an application is made for a determination under subsection (1)(b), the Authority or the court—
(a)
must have regard to the existing pay equity claim settlement; and
(b)
may determine that the claim may be raised only if satisfied that there are exceptional circumstances.
(5)
If an application is made for a determination under subsection (1)(f), the Authority or the court may take the following into account:
(a)
the reasons for historical undervaluation set out in section 13F(2):
(b)
in relation to continued systemic undervaluation, all relevant matters including the reasons set out in section 13F(3):
(c)
the requirements set out in section 13ZD for assessing a pay equity claim.
(6)
If an application is made for a determination under subsection (1)(i), the Authority must also specify that remuneration is to be increased in 3 annual phases of equal amounts or proportions starting at the date of the pay equity claim settlement.
(7)
If an application is made for a determination under subsection (1)(j), the Authority or the court must take into account—
(a)
the conduct of the parties; and
(b)
the ability of the employer to pay; and
(c)
the size of the increase in remuneration; and
(d)
any other matter the Authority or the court considers relevant.
Matters the Authority may not determine
(8)
Despite subsection (1), the Authority may not make a determination—
(a)
in relation to an employer’s decision under section 13L to opt out of a multi-employer pay equity claim (see section 13L(10)); or
(b)
in relation to the failure of parties to agree whether to select a previously settled pay equity claim under section 13ZE(4) as an appropriate comparator for their assessments under section 13ZD; or
(c)
that provides for—
(i)
recovery of an amount of remuneration that relates to work performed before the date of the determination; or
(ii)
the review, or a process for the review, of a pay equity claim settlement.
39 Section 13ZZ amended (Union must notify employees covered by union-raised claim before applying for determination by Authority)
(1)
In section 13ZZ(1), replace “section 13ZY(1)(d)”
with “section 13ZY(1)(i)”
.
(2)
Replace section 13ZZ(2)(b) with:
(b)
advise the employee of the consequences of the Authority making the determination, including that,—
(i)
if remuneration is increased, it will be increased to the determined level in 3 annual phases of equal amounts or proportions starting at the date of the pay equity claim settlement (see section 13ZY(6)); and
(ii)
the employee’s employment agreement will be varied and the employee will lose the right to bring their own claim relating to pay equity); and
(c)
advise the employee that the day before the date on which the union proposes to file the application for a determination is the final date on which the employee may opt out under section 13Y.
40 Section 13ZZA replaced (If Authority or court determines pay equity claim is arguable)
Replace section 13ZZA with:
13ZZA Effect of determinations on discontinued claims
(1)
This section and sections 13ZZAA to 13ZZAD—
(a)
apply to a pay equity claim that is discontinued by the employer giving notice to the claimant of a decision listed in subsection (2); and
(b)
set out the effect that determinations by the Authority or the court have on the discontinued claim.
(2)
The employer’s decisions are as follows:
(a)
a decision under section 13PB that the pay equity claim does not meet all requirements set out in section 13E:
(b)
a decision under section 13Q that the claim does not have merit:
(c)
a decision under section 13ZEA that no appropriate comparators are available for selection for use in assessing the claim:
(d)
a decision under section 13ZEB that the employees covered by the claim do not all perform work that is the same or substantially similar.
13ZZAA Decision that claim does not meet section 13E requirements
(1)
This section applies if the Authority or the court makes a determination under section 13ZY(1)(a), (b), or (c)(i) in relation to a decision referred to in section 13ZZA(2)(a).
(2)
If the effect of the determination is that the claim meets all requirements set out in section 13E,—
(a)
the claim is no longer discontinued; and
(b)
the employer must decide under section 13Q whether, in its view, the claim has merit and give notice of that decision to the claimant under section 13S; and
(c)
for the purposes of those obligations, sections 13PA(2) and 13R(1) and (2)(a) do not apply; and
(d)
the employer must under sections 13Q and 13S make, and give notice of, the employer’s decision about whether the claim has merit not later than—
(i)
60 working days after the date on which the employer’s decision is reversed less the number of working days between the date on which the claim was received and the date on which the employer gave the notice under section 13PB(4); or
(ii)
any extended date beyond the period described in subparagraph (i) that is specified in a notice by the employer under paragraph (e); and
(e)
the employer may, by notice to the claimant, extend the time limit specified in paragraph (d)(i) if the employer has reasonable grounds for requiring the extension; and
(f)
a notice under paragraph (e) extending the time limit must be given as soon as is reasonably practicable and,—
(i)
if it is the first notice extending the time limit since the claim was received, not later than 60 working days after the date on which the employer’s decision is reversed less the number of working days between the date on which the claim was received and the date on which the employer gave the notice under section 13PB(4):
(ii)
if a previous extension of the time limit under section 13R had not expired on the date on which the employer gave notice under section 13PB(4), not later than 5 working days after the date of the reversal of the employer’s decision; and
(g)
section 13R(2)(b) and (c) and (3) applies to a notice under paragraph (e); and
(h)
a notice to which paragraph (f)(ii) applies may extend the time limit in paragraph (d)(i) only by the period that was remaining of the existing extension.
(3)
If the effect of the determination is that the claim does not meet all requirements set out in section 13E, the claim remains discontinued from the date on which the employer gave notice of the decision to the claimant.
13ZZAB Decision that claim does not have merit
(1)
This section applies if the Authority or the court makes a determination under section 13ZY(1)(e) in relation to a decision referred to in section 13ZZA(2)(b).
(2)
If the determination is that the claim has merit,—
(a)
the claim is no longer discontinued; and
(b)
section 13ZB applies and the parties must enter into the pay equity bargaining process.
(3)
If the determination is that the claim does not have merit, the claim remains discontinued from the date on which the employer gave notice of the decision to the claimant.
13ZZAC Decision that no appropriate comparators are available
(1)
This section applies if the Authority or the court makes a determination under section 13ZY(1)(h) in relation to a decision referred to in section 13ZZA(2)(c).
(2)
If the determination is that 1 or more appropriate comparators are available for selection for use in assessing the claim,—
(a)
the claim is no longer discontinued; and
(b)
the parties must resume the process of selecting appropriate comparators under section 13ZE and assessing the pay equity claim under section 13ZD.
(3)
If the determination is that there are no appropriate comparators available for selection for use in assessing the claim, the claim remains discontinued from the date on which the employer gave notice of the decision to the claimant.
13ZZAD Later decision on work performed by employees covered by claim
(1)
This section applies if the Authority or the court makes a determination under section 13ZY(1)(c)(ii) in relation to a decision referred to in section 13ZZA(2)(d).
(2)
If the determination is that all of the employees covered by the claim perform work that is the same or substantially similar,—
(a)
the claim is no longer discontinued; and
(b)
the parties must resume the assessment of the pay equity claim under section 13ZD.
(3)
If the determination is that the employees covered by the claim do not all perform work that is the same or substantially similar, the claim remains discontinued from the date on which the employer gave notice of the decision to the claimant.
41 Section 13ZZB amended (Process on application to fix remuneration)
(1)
In section 13ZZB(1), replace “section 13ZY(1)(d)”
with “section 13ZY(1)(i)”
.
(2)
Replace section 13ZZB(2)(b) with:
(b)
the Authority is satisfied that all other reasonable alternatives for settling the pay equity claim have been exhausted.
42 Section 13ZZC amended (Limitation on challenge to determination of Authority fixing remuneration)
In section 13ZZC(1), replace “section 13ZY(1)(d)(i)”
with “section 13ZY(1)(i)”
.
43 Sections 13ZZD and 13ZZE repealed
Repeal sections 13ZZD and 13ZZE.
44 Section 13ZZF amended (Pay equity records)
Replace section 13ZZF(b)(i), with:
(i)
if the employer decides under section 13PB that, in its view, the claim does not meet all requirements set out in section 13E, the notice of that decision given to the claimant under that section; and
(ia)
the employer’s decision under section 13Q as to whether, in its view, the claim has merit and the notice of that decision given to the claimant under section 13S; and
(ib)
if the employer decides under section 13ZEA that no appropriate comparators are available for selection for use in assessing the claim, the notice of that decision given to the claimant under that section; and
(ic)
if the employer decides under section 13ZEB that, in its view, the employees covered by the claim do not all perform work that is the same or substantially similar, the notice of that decision given to the claimant under that section; and
45 Section 13ZZG amended (Pay equity claims by employees in education service)
(1)
In section 13ZZG(2),—
(a)
replace “is arguable”
with “has merit”
in each place:
(b)
replace “sections 13ZC to 13ZZE”
with “sections 13ZC to 13ZZC”
.
(2)
In section 13ZZG(5), replace “determining whether the claim is arguable and, if so, entering into the pay equity bargaining process described in sections 13ZC to 13ZZE”
with “deciding whether the claim meets all requirements set out in section 13E and has merit and, if so, entering into the pay equity bargaining process described in sections 13ZC to 13ZZC”
.
46 Section 18 amended (Penalty for non-compliance)
(1)
In section 18(2)(c),—
(a)
replace “13ZZA”
with “13ZZAB(2)(b)”
:
(b)
replace “pay equity bargaining”
with “the pay equity bargaining process”
:
(c)
replace “is arguable”
with “has merit”
.
(2)
After section 18(2)(c), insert:
(ca)
section 13ZZAC(2)(b) (which imposes a duty on an employer to resume the process of selecting appropriate comparators and assessing a pay equity claim if the Authority or the court determines that 1 or more appropriate comparators are available for selection for use in assessing the claim):
(cb)
section 13ZZAD(2)(b) (which imposes a duty on an employer to resume the assessment of a pay equity claim if the Authority or the court determines that all of the employees covered by the claim perform work that is the same or substantially similar):
(3)
In section 18(3)(a)(i), replace “is arguable”
with “has merit”
.
(4)
In section 18(4)(c), after “subsection (2)(c)”
, insert “, (ca), (cb),”
.
47 Section 19 amended (Regulations)
Replace section 19(1) and (1A) with:
(1)
The Governor-General may, by Order in Council, make regulations for either or both of the following purposes:
(a)
providing for anything this Act says may or must be provided for by regulations:
(b)
providing for anything incidental that is necessary for carrying out, or giving full effect to, this Act.
48 Schedule 1 amended
In Schedule 1,—
(a)
insert the Part set out in the Schedule of this Act as the last Part; and
(b)
make all necessary consequential amendments.
49 Schedule 2 amended
In Schedule 2, Part 2, clause 9(a), replace “section 13ZY(1)(d)”
with “section 13ZY(1)(i)”
.
Part 2 Consequential amendments to other Acts
Amendments to Employment Relations Act 2000
50 Principal Act
Sections 51 and 52 amend the Employment Relations Act 2000.
51 Section 33 amended (Duty of good faith requires parties to conclude collective agreement unless genuine reason not to)
Repeal section 33(2)(d).
52 Section 161 amended (Jurisdiction)
(1)
After section 161(1)(qd)(i), insert:
(ia)
determining whether a pay equity claim meets all requirements set out in section 13E of that Act (see section 13ZY(1)(a), (b), and (c)(i) of that Act):
(ib)
determining whether an employee’s work is the same as, or substantially similar to, work that is the subject of a pay equity claim raised by a union with the employee’s employer, for the purposes of determining whether or not the employee is, or is to be, covered by the claim (see section 13ZY(1)(d) of that Act):
(2)
In section 161(1)(qd)(ii), replace “is arguable”
with “has merit (see section 13ZY(1)(e) of that Act)”
.
(3)
Replace section 161(1)(qd)(iii) with:
(iii)
determining whether 1 or more comparators selected for use in assessing a pay equity claim are appropriate comparators or whether 1 or more appropriate comparators are available for selection (see section 13ZY(1)(g) and (h) of that Act):
(iiia)
determining, in relation to a decision by an employer under section 13ZEB of that Act, whether all employees covered by a pay equity claim raised by 1 or more unions perform work that is the same or substantially similar (see section 13ZY(1)(c)(ii) of that Act):
(4)
In section 161(1)(qd)(iv), after “undervalued”
, insert “(see section 13ZY(1)(f) of that Act)”
.
(5)
In section 161(1)(qd)(v), after “Act”
, insert “and specifying 3 annual phases of equal amounts or proportions (starting at the date of the pay equity claim settlement) by which the remuneration will be increased (see section 13ZY(1)(i) and (6) of that Act)”
.
(6)
After section 161(1)(qd)(v), insert:
(va)
determining whether remuneration agreed by the parties to a pay equity claim is to be increased to the agreed level in phases and, if so, the particulars of those phases (see section 13ZY(1)(j) of that Act):
(7)
Amendments to Public Service Act 2020
53 Principal Act
Sections 54 and 55 amend the Public Service Act 2020.
54 Section 82 amended (Pay equity claims)
In section 82(3)(a), replace “forming a view on whether the claim is arguable”
with “forming views on whether the claim meets all requirements set out in section 13E of the Equal Pay Act 1972 and on whether the claim has merit”
.
55 Section 83A amended (Commissioner to enter negotiations in consultation with affected department or interdepartmental venture)
In section 83A, replace “sections 13ZC to 13ZZE”
with “sections 13ZC to 13ZZC”
.
Schedule New Part 2 inserted into Schedule 1
Part 2 Provisions relating to Equal Pay Amendment Act 2025
7 Interpretation
In this Part,—
2025 amendment Act means the Equal Pay Amendment Act 2025
commencement date means the date on which the 2025 amendment Act comes into force
covered by the specified pay equity claim settlement has the same meaning as covered by a pay equity claim settlement in section 13B
existing pay equity claim means a pay equity claim that, before the commencement date,—
(a)
was raised; and
(b)
did not have a pay equity claim settlement recorded
review clause means a clause that—
(a)
is part of a specified pay equity claim settlement; and
(b)
sets out a process for the review of the employee’s remuneration to ensure that pay equity is maintained, including the frequency of reviews
specified pay equity claim settlement—
(a)
means a pay equity claim settlement recorded under the Act before the commencement date and in force immediately before the commencement date; and
(b)
includes the matters that are to be treated as pay equity claim settlements under clause 5.
8 Existing pay equity claims
(1)
An existing pay equity claim is discontinued on the commencement date.
(2)
Proceedings in relation to an existing pay equity claim—
(a)
may not be commenced before the Authority or in the court on or after the commencement date; and
(b)
if they were commenced before the Authority or in the court before the commencement date and have not been determined, are discontinued on the commencement date.
(3)
Despite subclause (2) and without limiting subclause (1), if proceedings before the Authority or in the court in relation to an existing pay equity claim were determined before the commencement date, an appeal against or challenge to the determination of the Authority or the court, whether commenced before, on, or after the commencement date, may be determined on or after the commencement date in accordance with this Act as if it had not been amended by the 2025 amendment Act.
(4)
This clause does not prevent a new claim that complies with section 13DA from being raised.
9 Claims relating to employees and work covered by previous settlements
(1)
No pay equity claim may be raised within 10 years after the date of a specified pay equity claim settlement if the pay equity claim would relate to—
(a)
any or all of the employees covered by the pay equity claim settlement; and
(b)
the work to which the settlement relates.
(2)
However, a pay equity claim referred to in subclause (1) may be raised if, on or after the commencement date, the Authority or the court makes a determination under section 13ZY(1)(b) that the claim may be raised.
10 Review clauses
(1)
On and after the commencement date,—
(a)
a review clause has no effect; and
(b)
a term or condition of an employment agreement that is based on a review clause has no effect; and
(c)
proceedings may not be commenced before the Authority or in the court to the extent that those proceedings concern—
(i)
a review clause; or
(ii)
a term or condition of an employment agreement that is based on a review clause; and
(d)
any proceedings of a kind referred to in paragraph (c) that were commenced before the Authority or in the court before the commencement date and have not been determined are discontinued to the extent that those proceedings concern a review clause.
(2)
Clause 8(3) does not apply to an existing pay equity claim to the extent that the proceedings appealed against or challenged concern—
(a)
a review clause; or
(b)
a term or condition of an employment agreement that is based on a review clause.
Legislative history
6 May 2025 |
Introduction (Bill 147–1), first reading, second reading, committee of the whole House, third reading |
|
13 May 2025 |
Royal assent |
This Act is administered by the Ministry of Business, Innovation, and Employment.