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Pay discussions at work.
Employees now have stronger legal protection to discuss their pay. We help employers update agreements, train managers and avoid accidental retaliation.
Written by
Carlile Dowling Lawyers
General information only — not legal advice.
Erick advises employers on the 2025 pay-secrecy reforms and how to handle staff pay discussions without breaching the new rules.
Pay secrecy clauses are now a liability
Many employers still have pay secrecy clauses or an informal culture of "don't talk about pay." Since 27 August 2025, that approach creates legal risk.
Prohibition is restricted
Employers cannot prohibit employees from discussing their pay. This includes blanket confidentiality clauses covering remuneration.
Pressure is caught too
Pressuring employees not to share pay information also falls within the protection, even where the pressure is informal.
Retaliation creates claims
Any action that looks like retaliation after a pay discussion can become a personal grievance. Timing and documentation matter.
What employees can share
The law protects pay disclosure when it is used to find out if pay is fair, address perceived pay differences, or support pay equity concerns.
Employers can still protect genuinely confidential commercial information, personal data and trade secrets. But treating "talking about pay" as a blanket breach is no longer defensible.
Accidental retaliation
Employers often create risk without intending to. Cutting shifts after a pay discussion, removing responsibilities, or using "attitude" language in performance reviews shortly after can all look like retaliation.
Even where the employer believes the change is justified, the timing creates an inference that is difficult to overcome.
Key point: Document the reasons for any changes to an employee's role, hours or responsibilities independently of any pay discussion.
What to do now
Situations that need legal advice
We recommend getting advice when:
- The discussion links to discrimination or pay equity
- A union is involved
- You are considering disciplinary action
- You want to redesign pay structures across a team
Small teams, big impact
In smaller Hawke's Bay workplaces, pay conversations travel fast. Differences that might go unnoticed in a large organisation become obvious in a team of ten.
We help local employers build pay frameworks and manager guidance that keeps the workplace stable as transparency increases.
Related Employer Guide
Pay transparency starts with the agreement. Step 1 of the Employment Law Guide walks through hiring, agreements, trial periods, and the clauses that most often need updating.
Read the Step 1: Hiring & AgreementsRelated Reading
Employment Relations Act Changes (21 Feb 2026): What Employers Should Update
A practical employer summary of the 21 February 2026 changes and what to update in agreements, contractor arrangements, and internal processes.
Wage Underpayment and the Crimes Act: What "Theft by Employer" Means in Practice
A practical employer overview of the offence often called theft by employer and what it means for payroll auditing, remediation, and governance.
