The first quarter of 2025 has flown by, bringing several key changes for employers to be aware of. From minimum wage increases and new employment law proposals to mental health guidelines and intensified compliance checks, staying informed is essential to maintaining a compliant and productive workplace.

As always, we’re here to help you navigate these changes. If you have any questions, don’t hesitate to reach out.

‍Minimum Wage Increase

Another minimum wage increase took place on 1 April.

The new minimum wage applies to all employees 16 and over, including those paid by salary, piece rates or commission.

  • Adult minimum wage has gone up from $23.15 to $23.50 per hour.
  • Starting-out and training minimum wage has gone up from $18.52 to $18.80 per hour.

Proposed Changes to Employment Relations Act regarding personal Grievances

Workplace Relations and Safety Minister Hon Brooke van Velden has shared further details on a proposed amendment to the Employment Relations Act 2000, which was announced late last year.

The change, included in the Employment Relations Amendment Bill 2025, would prevent employees earning a base salary above $180,000 from raising a personal grievance for unjustified dismissal. If passed:

  • New employment agreements would be affected immediately.
  • Existing agreements would have a 12-month transition period for review and adjustments.

While the draft bill is yet to be released, businesses may want to prepare for employees negotiating longer notice periods, termination payments, or salary structures to remain below the threshold.

In addition to this, the proposed Amendment Bill includes measures to reduce or prevent employees from claiming a reward in personal grievance cases if they contributed to the situation. This could apply to a range of behaviours, from minor issues like tardiness to more serious actions, such as violence.

‍New Law on Wage Theft: What Employers Need to Know

The Crimes (Theft by Employer) Amendment Bill has recently become law, aiming to address intentional failures to pay wages owed to employees. While most employers comply with wage laws, the Amendment Act clarifies that intentionally failing to pay wages is now considered theft, with potential criminal penalties.

Key points to note:

  • Employers can now be criminally liable for wage theft if they intentionally fail to pay owed wages and have no reasonable excuse for the failure.
  • If the failure is unintentional, employers may have a defence if they can demonstrate this.
  • Penalties for wage theft include:
    • A fine of up to $5,000, up to one year in prison, or both for individuals.
    • A maximum fine of $30,000 for other entities.

New Mental Health Guidelines from WorkSafe

WorkSafe has released new good practice guidelines aimed at helping people conducting a business or undertaking (PCBUs) identify and manage psychosocial risks in the workplace. The guidelines clarify what these risks are, how to recognise them, and how they can be effectively minimised or eliminated.

WorkSafe’s focus has traditionally been on physical health and safety, with limited guidance on mental health. However, under the Health and Safety at Work Act 2015 (HSWA), health is defined as both physical and mental. These new guidelines acknowledge that mental wellbeing is just as crucial as physical safety in the workplace.

Under HSWA, PCBUs have a legal duty to ensure, as far as reasonably practicable, that workers’ health and safety are protected. This includes addressing psychosocial risks and ensuring that workplace conditions do not put employees or others at risk.

There are multiple ways to ensure you support a mentally healthy workplace, including having comprehensive health and safety management systems and robust people policies in place, as well as offering an Employee Assistance Programme (EAP) service.

‍Employer Ordered to Pay over $1.7 Million in Damages to Former School Counsellors for Failure of Managing Stress, Workload, and Employee Wellbeing

We’re hearing that Personal Grievance claims referencing Mental Harm caused by work and failure by the Employer to appropriately address this are on the rise. This case law is an example of this.

A couple worked as guidance counsellors at Melville High School for 15 years, successfully claimed unjustified disadvantage and breaches of duty. The employees were counsellors who assisted students, staff and the wider community during a crisis response relating to 32 deaths in the community by student suicides, fatal crashes, terminal illness, and murder. They claimed they were overworked, under resourced, under supervised, and worked in an environment that strained professional relationships. The employees expressed their inability to cope with the high workload many times. The Court found the employer failed to manage their increasing workloads, monitor their wellbeing, provide supervision, or mitigate the trauma they experienced in their roles. Both employees developed post-traumatic stress disorder as a result.

This case, although extreme, is a strong reminder of the importance of proactively managing employee wellbeing, particularly in high-stress roles, and meeting employers' legal obligations around health, safety, and fair treatment.

‍Labour Inspectorate Ramping Up Compliance Checks in 2025

Employers across multiple industries are under increased scrutiny as the Labour Inspectorate intensifies compliance monitoring throughout New Zealand. Ongoing and upcoming operations will target businesses in retail, hospitality, construction, security, horticulture, viticulture, and dairy, with a focus on minimum wage payments, recordkeeping, holiday and leave entitlements, and compliance with accreditation obligations.

Operation Atoll, a large-scale initiative launched in January, has already uncovered concerns in the Hamilton and Napier regions, with more inspections planned nationwide. Follow-up visits are also being conducted for businesses with prior breaches to ensure corrective action has been taken.

The Inspectorate is working alongside Immigration New Zealand and Tenancy Services to combat worker exploitation and unfair competition. While enforcement action will be taken where necessary, inspectors are also available to provide education and support to employers needing guidance on employment standards.

‍What Employers Should Do

Ensure compliance with employment laws to avoid penalties and inspections. If you are unsure of your obligations, reach out to us.

‍Immigration Updates

  • Market Rate Replaces Median Wage for AEWV Applications: For AEWV applications, the median wage has been replaced by market rates, sourced from resources such as the Seek Salary Guide and Hays Salary Guide. INZ will verify that employers offer at least the market rate for roles when applying for Job Check and AEWV.
  • Median Wage Applies to Residence Categories: The median wage of $31.61 per hour remains applicable for Skilled Migrant Category, Green List, and sector agreement residence applications.
  • Increased Median Wage for Parent and Partnership Categories: An increased median wage of $33.56 per hour now applies to Parent Category applications and Partnership Work Visas for certain roles involving migrant workers.

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Need advice or people-support? Our team are ready and available. Give us a call on +64 9 300 7224 or email hello@thepeopleplace.co.nz.

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Photo by Casey Horner on Unsplash