New Era of Pay Transparency in NZ Workplaces

What’s changing, exactly?

Employees can talk about their own pay:

• Workers may discuss their remuneration if they choose.
• Employers cannot penalise anyone for sharing their pay.
• Breaches could give rise to a personal grievance claim.

Why this matters:

For years, many employment agreements included “pay secrecy” clauses, the quiet, unspoken rule not to talk about salary. This Bill lifts that lid and normalises pay conversations across workplaces.

The debate: fairness or friction?

Supporters’ view – transparency and equity:

Backers see this as a win for pay transparency and a step toward closing gender and ethnic pay gaps.

Concerns – culture and cohesion:

Others warn that open pay conversations can spark comparisons. Without clear context, that may lead to resentment, confusion, and disengagement.

What you need to do now:

• Review employment agreements → remove or update any pay secrecy clauses.
• Check pay structures → ensure they’re fair, justifiable, and consistent.
• Train leaders → equip them to explain why pay differences exist.
• Plan your comms → manage transparency carefully to protect culture and trust.

Because once employees start talking, you want to be ready with clear answers, not scrambling to justify decisions on the spot.

What employers might face:

• Greater transparency can spotlight inequities, be prepared to explain pay differences professionally and consistently.
• Morale risks can rise if discrepancies go unexplained or feel unfair.
• Proactive communication and transparent remuneration frameworks become essential.

How King & Co can help:

• Build transparent pay frameworks.
• Update agreements and policies.
• Prepare leaders for open conversations.
• Protect your culture while embracing change.

Your too-hard basket is our happy place. Give us a call, we’ll help you turn controversial change into a competitive strength.