Strengthening penalties for wage theft in New Zealand: Crimes (Theft by Employer) Amendment Bill
Wage theft is one of the most common forms of migrant labour exploitation in New Zealand. While New Zealand has a personal grievance regime to address this issue, victims often find it difficult to understand their rights under the regime and initiate a claim, or they face financial barriers to access justice.
On 14 March 2025, the Crimes (Theft by Employer) Amendment Bill (Amendment Bill) came into force to address this issue by providing a criminal route for theft of wages alongside the civil route through the Employment Relations Authority.
The Amendment Bill amends the Crimes Act 1961 by adding a new section so that an employer (ie any person who employs another person and is required to pay money owed to that person under an employment agreement, written or otherwise) will be seen to have committed theft if they "intentionally fail, without reasonable excuse, to pay the money to" their employee.
The sentence will depend on the value of the property stolen (ie wages or value of any other minimum entitlements, such as holiday pay). Where the value exceeds $1,000, an employer may be sentenced to imprisonment for a term of up to seven years. For values between $500-$1,000, imprisonment may be for a term of up to one year and if the value is $500 or less, imprisonment may be for a period up to three months.
Minimum wage
The minimum wage increased to $23.50 per hour from $23.15 per hour, taking effect on 1 April 2025.
Upcoming proposed changes to significant employment and health and safety legislation
Workplace Relations and Safety Minister Brooke van Velden has announced several anticipated changes that will affect the employment landscape this year.
Holidays Act reform
In September 2024 the Government consulted on a draft Holidays Act Reform Bill which proposed moving from the annual entitlement system to a week-based accrual system. Following negative feedback that this reform did not go far enough, the Minister has announced that Bill will be redrafted to use an hours-based accrual system. The Minister acknowledges redrafting will delay the reform but expects to pass a new Act before the end of this Government's term.
Employment Relations Amendment Bill
A raft of changes are being introduced with the Employment Relations Amendment Bill (the Bill). The Bill proposes to:
- Prohibit employees who earn over $180,000 from raising unjustified dismissal grievances
- Re-introduce pay deductions for partial strikes (which were prohibited in 2018). Employers will have the option to either calculate deductions proportionally to the duties employees failed to perform, or opt for a fixed 10% deduction
- Increase the threshold for procedural error in circumstances where an employer has acted in a fair and reasonable manner.
The Bill also proposes to change how cases that arise from an employee's misbehaviour will be considered. The proposed changes include:
- Removing all remedies when the employee is found to have committed serious misconduct
- Allowing consideration of whether the employee's behaviour obstructed the employer’s ability to meet their fair and reasonable obligations.
Where the employee's behaviour has contributed to the personal grievance:
- Allowing remedy reductions of up to 100% (increased from the current 50%)
- Removing the remedy of reinstatement
- Removing compensation for hurt and humiliation.
Changes proposed to health and safety legislation
Following a substantial consultation process, the Minister has confirmed that a range of legislative, operational, and regulatory changes will be made to transform performance across the health and safety system. The stated purpose of these changes is to "ensure businesses know what to do to comply with the laws and regulations" and it is proposed that they will:
- Provide a carve-out for small, low-risk businesses from general Health and Safety at Work Act requirements. These businesses will only have to manage critical risks (causing death and serious illness) and provide basic facilities to ensure worker welfare
- "Free the great outdoors from health and safety scope creep" by confirming that landowners will not be responsible if someone is injured on their land while doing recreational activities. Health and safety responsibilities will lie with the organisation running the activities
- Reduce tick-box health and safety activities
- Reduce notification requirements
- Address overlapping health and safety duties by clarifying the boundaries between the Act and regulatory systems that already manage the same risk
- Clarify the distinction between governance and operational management health and safety responsibilities to reduce directors’ fear and risks of overcompliance. This will "specify that the day-to-day management of health and safety risks is to be left to managers so that directors and boards can focus on governance and the strategic oversight of the business."
Further updates in the employment, health and safety area
Uber granted leave to appeal the Court of Appeal decision
A two-day hearing has been set for 8 and 9 July 2025, for the Supreme Court to hear the appeal decision of the Court of Appeal in E Tū Incorporated v Rasier Operations BV which classified four Uber drivers as employees (and not independent contractors) with access to minimum employment entitlements.1
Approved Code of Practice for Loading and Unloading Cargo
A new Approved Code of Practice for Loading and Unloading Cargo at Ports and on Ships has been launched, meaning there is now one unified code for all the ports across New Zealand. This new Code accompanies the ports' health and safety regulator having shifted from WorkSafe New Zealand to Maritime New Zealand in July 2024.
This article was prepared by Sherridan Cook (partner), Helen Pryde (special counsel), Alex Morimoto (solicitor), Sanne Vitalis (law clerk) and David Laxon (summer clerk).
1 E Tū Incorporated v Rasier Operations BV [2024] NZSC 177.
