In this episode of the 2025 Litigation Podcast Series, host Gillian Service, a partner in the employment team is joined by fellow partner and employment expert June Hardacre. They discuss the upcoming changes to the employment landscape in New Zealand for 2025. The conversation covers significant legislative shifts, including high-income threshold changes, remedies for misconduct, contractor status, and several bills and laws that will impact employers and employees alike.
[01:29] Gillian and June highlight the focus on changes from Parliament that may drive litigation. They discuss the shift from an employee-friendly jurisdiction to a more employer-friendly environment, emphasising the importance of understanding these changes for businesses.
[02:21] They discuss the proposed high-income threshold changes, where employees earning over $180,000 may not be able to bring unjustified dismissal claims. June explains the flexibility this provides employers in strategic roles and the potential for nuanced agreements and negotiations for high earners. They also touch on the impact this will have on recruitment processes and worker-employer negotiations.
[05:38] June talks about the proposed removal of reinstatement and remedies for employees whose behaviour constitutes serious misconduct. They discuss the potential for remedy reductions up to 100% for employee contribution to a grievance. The conversation highlights the likelihood of litigation to define "serious misconduct" and procedural defects, predicting that these cases will shape the application of the new laws.
[10:34] Gillian explains the introduction of a gateway test to determine contractor status. The criteria include independence, the ability to work for others, subcontracting, and task acceptance. Noting that legislative and case law updates are expected to provide more clarity on this matter.
[14:54] June outlines several additional legislative changes, starting with the repeal of the 30-day rule for new employees covered by collective agreements. They discuss the removal of the active choice form and union information requirements, predicting potential increased union activity in workplaces as a result.
[17:22] Gillian and June discuss the new bills and laws that are currently working their way through the legislative process. These include pay deduction for partial strikes, an exit negotiations bill to permit without risk of claims, and a pay secrecy bill to protect employees discussing remuneration. They also discuss the criminalisation of wage theft, which introduces significant penalties for employers who intentionally fail to pay money owed to employees.
Information in this episode is accurate as at the date of recording: Friday, 11 April 2025.
Please contact Gillian Service and June Hardacre in our Litigation team if you need legal advice and guidance on any of the topics discussed in this episode.
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