Global HiringContact us
English
Portuguese
Spanish
CXC Global
EnglishCXC Global

Employee protection provision in New Zealand

There are labour laws and regulations in place to make sure workers are treated fairly and their rights are protected. When hiring in New Zealand, it’s important to follow these rules to create a fair workplace and avoid any legal issues.

The Employment Relations Act 2000 outlines important rights for employees, including fair treatment, minimum wage, leave entitlements, and the right to organise and bargain collectively. Companies must keep this in mind and incorporate them to their internal policies.

A key part of this Act is the Employee Protection Provision, which comes into play during restructuring situations to ensure employees are treated fairly during times of meaningful change within a company, such as during a sale or transfer of business.

Labour market changes in New Zealand

The government has taken steps to combat exploitation, especially of vulnerable workers, including migrant workers. The Worker Protection (Migrant and Other Employees) Act 2023, which came into effect on January 6, 2024, marked a crucial step towards ensuring a safer, more equitable, and fair working environment for employees from diverse backgrounds.

To provide more protections for migrant workers as well as other employees within the workforce, this Act introduces a variety of changes across several areas of law, including the Employment Relations Act, the Immigration Act, and the Companies Act, with the primary aim of combating migrant exploitation.

One of the significant aspects of this Act is the amendments it introduces to existing laws, which include the establishment of offences and penalties tailored to address the unique challenges and vulnerabilities faced by migrant workers in the workplace.

In this guide, we delve into various employee protection laws, such as whistleblowing protection, pay equity, anti-discrimination, and more.

Whistleblower law in New Zealand

Whistleblowing legislation in New Zealand

The process of whistleblowing in the workplace is governed by the Protected Disclosures (Protection of Whistleblowers) Act 2022, which came into effect on July 1, 2022. This Act ensures that workers can easily and safely report instances of serious wrongdoing within their organisations.

Under the Act, serious wrongdoing includes any unlawful, corrupt, or irregular use of public funds or resources, conduct that poses a serious risk to public health, safety, the environment, or the maintenance of the law, and any criminal offences that could impact the public sector’s integrity.

How does whistleblowing in New Zealand work?

The Protected Disclosures (Protection of Whistleblowers) Act 2022 provides a framework regarding the whistleblowing process, facilitates the reporting of serious wrongdoing within organisations, and offers protection to whistleblowers against retaliation.

Those who report are assured of discretion, protection against punitive actions, and equitable treatment, in addition to legal immunity. This protection remains in place, regardless of the discloser’s accuracy in identifying actual serious misconduct. To ensure responsiveness and transparency in handling whistleblower reports, the organisation must respond within a 20-working-day window or otherwise provide a clear timeline.

The Act highlights the importance of internal reporting mechanisms but also accommodates external disclosures under specific circumstances. For example, if an employee feels that an internal report would not be effectively addressed or if the nature of the wrongdoing directly involves senior management, they are allowed to take their concerns to an external authority.

To support employers and employees in navigating the whistleblowing process, the New Zealand Ombudsman provides guidance and resources. This includes information on how to make a protected disclosure and what protections are available to whistleblowers under the law.

Data privacy in New Zealand

Data privacy law in New Zealand

Employers need to ensure their data privacy policies are in compliance with New Zealand’s data privacy law, the Privacy Act 2020, and its underlying principles. These policies should protect employee personal information and to manage it responsibly.

To remain compliant, employers must keep the following considerations in mind:

  • Purpose of collection: Employers should collect personal information only for a lawful, specific, and clear purpose related to their functions or activities, and the information should be necessary for that purpose.
  • Collection from the source: Whenever possible, personal information should be collected directly from the individual concerned. If personal information is collected from another source, conditions apply under which this is permissible.
  • Notification of collection: Employees should be informed about the collection of their personal data, including the purpose for which it is collected, who will have access to it, and how it can be corrected or accessed by the individual.
  • Use and disclosure: Personal information should not be used or disclosed for purposes other than those for which it was collected unless specific exceptions allow, such as consent from the individual or legal requirements.
  • Storage and security: Reasonable safeguards must be put in place to protect personal information from unauthorised access, loss, misuse, or disclosure.
  • Access and correction: Employees have the right to access their personal information and request corrections if necessary. Employers should include a clause in their privacy policy outlining the process for these requests and mentioning any instances in which access can be lawfully refused.
  • Retention: Employers should only keep personal data as long as needed for legal purposes.
  • International transfers: If personal information is transferred outside New Zealand, the employer must ensure that the recipient jurisdiction has adequate privacy safeguards in place, or that certain conditions are met to protect the data as required by the New Zealand Privacy Act.

It’s important to incorporate these considerations into your company’s privacy policies and ensure that all employees are aware of these policies. Any breach of the Privacy Act can lead to complaints, investigations, and even enforcement actions by the New Zealand Privacy Commissioner.

Equal treatment for temporary agency workers in New Zealand

All workers, including temporary agency workers, are entitled to fair treatment under the Employment Relations Act 2000 and other employment legislation, which ensures basic employment rights and protections. Employers, including temporary work agencies, should adhere to non-discrimination policies and provide equal opportunity regardless of immigration status.

Agency workers enjoy the same rights and protections as other employees, such as receiving at least the minimum wage, holiday entitlements, and legal working hours, among other rights. To prevent exploitation and discrimination in the workplace, New Zealand’s labour laws mandate fair treatment for all employees, including temporary agency workers.

Anti-discrimination laws in New Zealand

In the workplace, anti-discrimination principles are primarily governed by the Human Rights Act 1993. This act prohibits discrimination on various grounds, such as race, sex, marital status, religious belief, ethical belief, colour, age, political opinion, employment status, family status, and sexual orientation. It covers all aspects of employment, including job advertisements, recruitment, terms and conditions of employment, training, promotion, and termination.

Laws against discrimination in New Zealand

The Employment Relations Act 2000 complements the Human Rights Act by ensuring all employees are treated fairly and can work in a safe and healthy environment free from discrimination.

Moreover, New Zealand’s Bill of Rights Act 1990 upholds the right to freedom from discrimination, strengthening the protections afforded to individuals.

Laws against harassment in New Zealand

Several pieces of legislation address workplace harassment, including bullying, sexual harassment, and racial harassment, to prevent and manage such behaviour. The following laws and regulations aim to create a safe and healthy environment for all employees.

  • Health and Safety at Work Act 2015: This emphasises the employer’s responsibility to manage risks associated with workplace harassment, viewing it as a workplace hazard that must be identified and controlled. This act takes a broad approach, requiring employers to ensure, so far as is reasonably practicable, the health and safety of workers and others affected by the work conducted.
  • Employment Relations Act 2000: It addresses the interpersonal dynamics within the workplace, including harassment issues, by outlining the mutual obligations between employers and employees to treat each other in good faith.
  • Harassment Act 1997: This specifically outlines what constitutes harassment and provides mechanisms for individuals to seek relief from harassment, making the act or pattern of behaviour itself legally identifiable and actionable.
  • Human Rights Act 1993: It defines and addresses discrimination, which can include various forms of harassment. It makes it unlawful for employers to engage in behaviour that discriminates against employees, thereby offering protection against workplace harassment that falls under discriminatory acts.

Age discrimination policy in New Zealand

All employees and applicants for employment are protected from unlawful age discrimination. The New Zealand Bill of Rights Act 1990 ensures that everyone has the right to freedom from discrimination on the grounds contained in the Human Rights Act 1993.

The Human Rights Act 1993 prohibits discrimination on several grounds, including age, ensuring that individuals are treated fairly and without prejudice in various areas of life, including employment. This means that actions or policies that unfairly differentiate among individuals on the basis of age could be considered discriminatory unless they can be justified under the Act. For employment, this covers all stages of employment, from recruitment and hiring to training, promotion, and conditions of employment.

In addition, the Act specifies that discrimination occurs when someone is treated unfavourably or is subjected to a detriment that others in similar conditions do not face, or when they are denied, opportunities afforded to others, based on one of the prohibited grounds of discrimination.

Bullying harassment in New Zealand

Employers are expected to have clear policies in place that outline what constitutes bullying, harassment, and discrimination, and the steps the organisation will take to prevent and respond to these behaviours. This includes creating an environment where such conduct is never tolerable, and all employees are treated with respect.

When bullying, harassment, or discrimination reports arise, it is crucial for the issue to be investigated carefully, considering the perspectives of both the complainant and the person being complained about. Such investigations must be impartial, thorough, and timely to ensure fairness and respect for all parties involved.

Equal pay in New Zealand

The Equal Pay Act 1972 in New Zealand is a key piece of legislation designed to ensure that men and women are paid equally for the same work.

This was further expanded by the Equal Pay Amendment Act in 2020, which provides a clearer process for raising and resolving pay equity claims. Here’s a simple breakdown of the Act:

  • Equal pay for equal work: It ensures that men and women are paid the same for doing work that is of equal value. This means that if two people are doing jobs that are different but require similar skills, effort, and responsibility, they should be paid the same.
  • Pay equity claims: The Act makes it easier for workers to bring forward claims if they believe they are not receiving equal pay. It provides a clearer process for raising and resolving these claims.
  • Work of equal value: It recognises that work can be different but still comparable in terms of the skills and effort required. This helps to address pay gaps between jobs traditionally held by men and those traditionally held by women.
  • Proactive Measures: Employers are encouraged to proactively assess and address any potential pay disparities within their organisations.

Understanding pay equity claims in New Zealand

A pay equity claim involves addressing and correcting pay disparities for work of equal value. This means comparing jobs that are different but comparable in terms of skill, effort, responsibility, and working conditions.

To raise a claim, it’s encouraged to first address the issue with the employer or through internal processes. If informal resolution doesn’t work, a formal pay equity claim can be lodged by the employee or through the union if informal resolution doesn’t work. Employers are required to review the claim and engage in discussions to assess and resolve the issue. They should provide a response and attempt to reach an agreement. This can sometimes lead to a resolution without needing formal claim procedures.

If the dispute cannot be resolved through mediation or negotiation, the claim may be taken to the Employment Relations Authority or Employment Court for a decision.

Equal pay amendment act impact on businesses

The impact of the Equal Pay Amendment Act on businesses in New Zealand can be seen in the increased focus on ensuring pay equity and reducing the gender pay gap within workplaces. Due to the introduction of this act, businesses are now more accountable for providing equal pay for work of equal value.

Employers must assess and rectify any inequities in pay that may exist, particularly in industries that predominantly employ one gender. This has a positive impact on promoting fairness and gender equality in the workplace.

The Act has also made it easier for workers to make pay equity claims. This change lowers the barriers to court action by making it a last resort, encouraging more constructive dialogue and negotiations directly between employers and employees.

Ultimately, this legislative development pushes businesses to be more proactive and diligent in examining and maintaining equitable pay practices, which can improve employee satisfaction and reduce the likelihood of legal disputes.

Safeguard your business with our compliance expertise

Understanding what you can and can’t do as an employer is one of the biggest challenges of hiring in New Zealand. Get it wrong, and you could face legal action and damage to your reputation.

Our solutions protect both you and your workers, thanks to our team’s in-depth knowledge of local and international labour laws. That means you can stop worrying about compliance issues and focus on getting the job done.

Compliantly hire employees anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

DISCLAIMER: The information contained on this website is provided for general informational purposes only and should not be construed as legal, tax, or other professional advice on any subject matter. While we endeavor to ensure that the content is accurate and up to date, we make no warranties or representations of any kind regarding the completeness, accuracy, reliability, suitability, or availability of the information contained herein. The content on this site is not intended to be a substitute for professional advice. Users should not act or refrain from acting based on any information on this website without seeking the appropriate legal, tax, or other professional advice tailored to their specific circumstances from qualified professionals. We expressly disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this website. Use of the information on this site does not create an attorney-client, tax advisor-client, or any other professional-client relationship between the user and the website or its authors.

BLOG

Helping businesess to compliantly engage talent since 1992