New rules for producing employment agreements and proposed reform on pay equity claims

A recent change to the Employment Relations Act clarifies the expectations on employers to retain and provide employment agreements. Meanwhile, a Bill has been introduced into Parliament to reform the pay equity claim legislation under urgency

Employment agreement changes

Under the Employment Relations Act 2000 (the Act), employers are required to retain a copy of an employee’s individual employment agreement, or individual terms and conditions of employment.

The Act further requires employers to provide employees, on request, with a copy of the agreement or t’s & c’s, as soon as reasonably practicable. An employer who fails to comply with this requirement could be liable to a penalty imposed by the Employment Relations Authority.

On 30 March 2025, the Act was amended to explain specifically what that obligation to ‘retain a copy of the employment agreement or t’s and c’s’ requires. It requires employers to ensure that:

1. The employee does not hold the only copy of the agreement, individual terms and conditions of employment, or intended agreement; and
2. The employer’s copy of the agreement, individual terms and conditions of employment, or intended agreement is readily accessible.

The amendment further clarifies that before a Labour Inspector can bring an action in the Authority for a penalty, it must give the employer 7 working days to remedy the breach, by either producing a copy of the agreement that was retained, or providing a copy of the agreement in accordance with a request.

Pay equity claims

Hon Brooke van Velden has announced the introduction of the Equal Pay Amendment Bill into Parliament, to “make the process of raising and resolving pay equity claims more robust, workable and sustainable”. The Bill will progress through Parliament under urgency.

Van Velden expressed a view that the current Act is not working as intended, stating that claims have been able to progress without strong evidence of undervaluation. Van Velden further gave examples of where librarians have been comparing themselves to transport engineers, and admin and clerical staff comparing themselves to mechanical engineers, and social workers comparing themselves to air traffic controllers.

The changes proposed include:

• Raising the threshold of “predominantly performed by female employees” from 60 percent to 70 percent and requiring that this has been the case for at least 10 consecutive years.
• Ensuring there are reasonable grounds to believe the work is historically and currently undervalued, including a requirement for evidence.
• Further clarity and guidance on the use of comparators.
• Employers being able to meet their pay equity obligations in a way that is sustainable for their business.

The changes will discontinue current claims, but new claims will be able to be raised under the amended Act if they meet the new requirements.

Want to know more?

If you have any questions about the changes, please contact our specialist employment team.

PDF available here.