The Employment Relations (Employee Remuneration Disclosure) Amendment Bill has passed its second reading in Parliament.
With broad cross-party support is looking likely to become law.
Introduced by Labour MP Camilla Belich in March 2024, the Bill seeks to amend the Employment Relations Act by preventing employers from restricting employees disclosing wage or salary information. It doesn't require staff to disclose anything, it simply makes it unlawful for employers to attempt to stop such disclosures.
Currently it is commonplace for remuneration information to be held private and confidential, and the terms of an employment agreement to restrict an employee from discussing the same with a third party.
Clauses such as this will become unlawful. Furthermore, any adverse action or disciplinary measures against a worker disclosing such information would also become illegal. A new reason for a personal grievance is introduced: adverse conduct for a remuneration disclosure.
Act have opposed the Bill and proposed a raft of changes citing a 'common-sense' approach, including changes to exclude commissions, bonuses and performance-related remuneration from the definition of "renumeration", restricting disclosures to only other workers of the same organisation, maintaining some level of protection for workers who do wish to keep their remuneration private, and delaying the Bill for a further 12 months amongst other things.
With the level of concern in recent years around pay equity, gender equality and transparency of pay it's likely the Bill will be passed. If so a review of your employment agreements would be required.
If you use our employment agreement builders as part of the
Employers Toolbox they will of course be updated accordingly at that time.