In July 2025, the Government put forward the Public Service Amendment Bill (Bill), to amend the Public Service Act 2020 (Act). The Bill aims to clarify the role of public service and reinforce the principle of merit-based appointments (among other things), so that chief executives of public service departments will no longer need to consider diversity when hiring and promoting staff.
The Bill follows the recent global trend of pulling back from diversity, equity and inclusion (DEI) policies within workplaces. This article will explore the changes proposed by the Bill, and what it means for the public sector in New Zealand.
How does the Act currently address DEI?
As it stands, diversity requirements appear throughout the Act, including:
- Section 44(c) notes that one of the Public Service Commissioner's general functions under the Act is to "develop a highly capable workforce that reflects the diversity of the society it serves and to ensure fair and equitable employment…"
- Section 73 requires chief executives to be good employers, including by recognising different minority groups and making decisions about remuneration free from bias
- Section 75(1)(a) requires chief executives of departments to be guided by the principle that the public service workforce "should reflect the makeup of society" and must "…foster a workplace that is inclusive of all groups"
- Section 97 notes that government workforce policy may include pay equity and workforce diversity and inclusiveness requirements
- Clause 16 of Schedule 3 requires the Commissioner to brief the Minister every three years on the extent to which public service agencies are achieving workforce diversity and inclusiveness
- Schedule 7 requires recruitment panels appointing chief executives to have regard to merit-based appointments and diversity and inclusiveness.
What are the proposed changes to the diversity requirements?
The Bill proposes to remove the recognition of pay equity and remunerations being free from bias under section 73, and to amend or remove references to diversity and inclusion from sections 44, 75, 97 and Schedule 3.
The Bill aims to emphasise merit-based appointments, rather than diversity, when appointing chief executives. This does not mean that diversity will never be a relevant factor, as merit could be interpreted as knowledge about a particular community, and employers will still need to comply with general employment laws (including in relation to bias and discrimination). It also may help make appointments clearer and more efficient, saving taxpayer money.
However, it removes the legislative requirement for diversity to be a factor, leaving it to the department's discretion. Therefore, these amendments have the potential to impact diversity amongst the public service sector, undermining the core principle that our public sector should reflect the society it serves. This may reduce the momentum behind department-level DEI programmes and reporting.
The Bill is currently at the Select Committee, and the report is due on 1 December 2025.
Impact on current hiring process in the public sector
The Bill, if enacted, is likely to shift the focus away from affirmative diversity and inclusiveness obligations, meaning that individual public service departments will have greater discretion in how, and whether, they actively pursue DEI. Departments are likely to face more scrutiny on how they will strike the balance between efficiency and merit without inadvertently undermining the public service objective of serving all New Zealanders effectively.
Public sector agencies may consider undertaking an assessment of their existing policies now, to ensure that their hiring processes remain compliant with the Human Rights Act 1993, the Employment Relations Act 2000, any pay-equity obligations and te Tiriti o Waitangi responsibilities.
If you have any questions about how the Bill might impact you, or would like to discuss your DEI hiring and promotion strategies, please contact the Buddle Findlay employment team.
Co-authored by Katrina Dickins (solicitor) and Tariel Lamb (solicitor).
