New NZ Bill Eyes Major Workplace Overhaul

New Zealand’s Employment Relations Amendment Bill passes its first reading, signalling a bold step toward reshaping job security, wage protections and fair work access across the country.

Big changes may be coming to the way New Zealanders work and small businesses need to be ready. Last week, the Employment Relations Amendment Bill 2024 passed its first reading in Parliament, kicking off a nationwide conversation on fairness, flexibility and the future of work with a big focus on contractors.

This Bill could reshape the workplace rules every employer has to play by. The Amendment Bill proposes a number of critical updates to existing employment law, aiming to strengthen protections for employees while streamlining certain employer obligations. 

Among the headline changes are:

• Clearer rules for trial periods and personal grievances
• Stronger safeguards around pay equity
• Enhanced guidance on good faith bargaining and union access

These updates reflect growing public and political pressure to create more secure, inclusive and equitable workplaces especially in sectors like hospitality, retail and aged care, where flexible work is often the norm.

According to the parliamentary Hansard, Minister for Workplace Relations and Safety, Hon Brooke van Velden, stated: “This Bill aims to ensure employment relationships are built on fairness and transparency while maintaining flexibility for employers and workers alike”.

Why SMEs should pay attention

For small and medium-sized employers, this reform brings both opportunity and responsibility. On one hand, clearer guidelines can reduce ambiguity and lower risk. But on the other hand, the changes could also mean more admin, tighter compliance obligations and changes to employment contracts or workplace policies.

The Bill could especially affect SMEs who rely on casual, seasonal or short-term staff. Think retail, agriculture or tourism. Under the proposed updates, trial period misuse or a lack of transparent employment agreements could expose employers to higher risk of personal grievance claims.

What’s next?

The Bill now moves to the Select Committee stage, where stakeholders, including small business owners, unions and HR experts, will be invited to provide feedback. This consultation period is where the real fine-tuning happens, so it’s a critical time for employers to have their say.