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Changes in Employment Law – Are You Compliant?
As we move through 2025, several important updates have come into force that employers should be aware of.
If you’re not compliant with these updates, you could put yourself and your business at risk of:
- Hefty fines
- Criminal charges, including imprisonment
- Possible ban from being a company director
Here’s a snapshot of the key employment law changes in New Zealand - and what you need to do about them.
Minimum Wage Increase
Effective 1 April 2025, the adult minimum wage has risen to $23.50 per hour, up from $23.15.
Training and starting-out wage rates have increased to $18.80 per hour.
Review all current wage rates and ensure any affected employees are updated to meet the new legal minimums.
Contact us if you have any questions or need assistance.
Wage Theft Now a Criminal Offence
As of 13 March 2025, intentional wage theft is now classified as a criminal offence under the Crimes (Theft by Employer) Amendment Act 2025. Employers who deliberately withhold wages, salaries, bonuses, holiday pay, or other entitlements - for any reason - without a lawful excuse may face criminal prosecution.
This includes withholding pay due to unresolved disputes, deductions not agreed to in writing, or delays in final pay after termination.
Penalties include:
- Individuals: Up to one year’s imprisonment, a fine up to $5,000, or both.
- Companies or organisations: Fines up to $30,000.
This law empowers employees to report wage theft directly to the police, shifting these matters from civil to criminal proceedings.
Review payroll processes and employment agreements to ensure any deductions or withholdings are lawful, documented, and compliant with the Wages Protection Act.
Contact us if you have any questions or need assistance.
Changes to Accredited Employer Work Visa (AEWV) Requirements
From 27 January 2025, employers are no longer required to complete Employment New Zealand’s online employer modules. However, they must still provide migrant workers with essential employment and settlement information.
Ensure your onboarding materials for migrant workers are complete, clear, and up to date.
Contact us if you have any questions or need assistance.
For detailed advice or assistance in implementing these changes in your workplace, contact our People & Culture team at here.
