Mr Luxon, our Prime Minister, is keen on numbers. The National Party came into power by capturing approximately 38% of the votes. According to the Electoral Commission, in 2023 there were 3.6 million registered voters (out of a population of over 5 million). National secured just under 1.1 million votes to get into power.

Mr Luxon is also great on KPIs (key performance indicators – great for reviewing performance, or more particularly, poor performance). A quick overview; Education (or should that be education with a small “e” – it’s hard to know with all the changes to the curriculum); Health (ohhh dear, but at least National knows that its voter base is more likely to be able to afford private health insurance); Law and Order (ICE worked out well in the US didn’t it, how about "move-on" orders to assist our poorest and most in need people by preventing them from engaging in “disruptive behaviour” such as begging and sleeping rough in town centres); Race Relations (Trump was keen on a wall, maybe National thought it could sit on top of a wall before deciding which side to jump down on; Beneficiaries (National’s plan was to slash benefits to make them get back into work – unemployment was roughly 4% in December 2023, it now sits at 5.4% in December 2025 and is tipped to rise even higher).

Maybe Mr Luxon’s legacy will be the changes to employment law that National has supported. Another quick overview.

The availability of trial periods of up to 90 days has been extended to all employers, and not confined to employers with less than 20 employees. Great in theory for employers who want to try out employees, but unfortunately the risks of dismissing an employee during a trial period remain.

Following the Uber decisions on whether Uber drivers are employees or contractors, the law was amended to introduce a “gateway test” which was said to provide more certainty in contracting arrangements. Of course there was little uncertainty for our courts - our Employment Court, Court of Appeal and Supreme Court all found that the Uber drivers were employees. Remarkably, the changes to the law look very similar to the changes that Uber had suggested to the Minister as a solution to the adverse decisions against it.

To be fair, not all changes are targeted at the working poor. Employees earning more than $200,000 or more per year have been stripped of the right to bring a personal grievance claim if they are unjustifiably dismissed.

For those employees that are able to bring a personal grievance claim if they are unjustifiably dismissed, they have been stripped of two important remedies if they contributed to their dismissal. The employee cannot be reinstated, and the employee will not be able to receive any compensation for any hurt or humiliation they have suffered. They can still claim lost wages, but that is usually capped at three months lost wages.

Perhaps the most damning of the employment law changes were those to pay equity laws. Effectively overnight the government made changes to the legislation that mean that 33 existing pay equity claims were cancelled, and the bar for future claims was significantly raised. Female-dominated workforces which are generally considered to be underpaid in comparison to those dominated by men will continue to be undervalued. Those claims were in some of our most valued occupations - Plunket nurses, community midwives, hospice nurses and health care assistants, primary care nurses, nurses in residential care. 

The Finance Minister said the changes meant savings of about $12.8 billion over four years. Mr Luxon has admitted that the changes to pay equity laws will save the government “billions of dollars” but he now says that this was not the motivation for changing the legislation. It is hard to see what other motivation the government may have had.

As of 1 April 2026, the government increased the adult minimum wage by 45 cents to $23.95 per hour. More realistically, the independently set living wage rises by 95 cents to $29.90 per hour. Even more realistically, a recent report by ASB economists says that households face a $55 a week rise in living costs this year, partly because of the Middle East conflict.

National came to power on a platform of Blame, Blame, Blame and tiny tax cuts that are costing $14.6 billion over four years. “Our plan is carefully targeted to ensure that those who will benefit the most are working New Zealanders. It’s about time they got some relief from Labour’s cost-of-living crisis and National will deliver that to them”, Mr Luxon said. The irony is that we are still waiting Mr Luxon.

If Mr Luxon was an ordinary working New Zealand employee no doubt he would be on a PIP (Performance Improvement Plan) by now. Actually no, if Mr Luxon was an employee he would earn more than $200,000 so he couldn’t challenge his dismissal if he was fired. But politics are even more brutal than our new employment laws. Mr Luxon’s final performance review will be in November this year. Current polling indicates that it is ranging between “unsatisfactory” and “needs improvement”. Read more...

For years, tikanga Māori has increasingly been recognised by our courts and legislation. The most recent significant case was the Supreme Court decision on whether Peter Ellis, under tikanga, would have a right to clear his name or re-establish his mana, even if dead. In Māoridom, mana and reputation carries on in whakapapa, rather than an individual's life.

It now seems that other cultural values may have to be considered in employment relationships. This month the Employment Court found that Pasifika values had been breached when it found that two employees, Mr John Faitala and Mrs Vohanoa Vea, were unjustifiably dismissed for redundancy reasons in June 2023.

The Pacific Island Business Development Trust is a long-standing not-for-profit organisation. Its objectives are to support Pasifika people to thrive in business and employment. It considers itself a trusted partner of Pasifika communities.

The position descriptions for Mr Faitala and Ms Vea both referred to Pasifika culture and values in its workplace. It wanted successful applicants to be fluent in one Pacific language and/or have cultural capability and understanding. For values, it focussed on Respect, Community and Reciprocity as cornerstones.

In evidence the Trust accepted that these values were pillars of the Pasifika community and that they are intrinsically embedded in Pasifika individuals. Mr Faitala and Ms Vea also confirmed that Pasifika values and principles are deeply ingrained into who they are, and that it shapes the way they conduct themselves and interact with others. Mrs Vea spoke of the importance of treating others with respect and dignity, and that respect is reciprocated. Mr Faitala also testified to the shared and universal Pasifika values of treating others how you would want to be treated and how this shaped how he conducted himself in all his interactions with others.

In early 2023 Ms Los’e was appointed as the Trust’s new chief executive to lead changes within the organisation. To meet identified challenges the Trust proposed that five roles would be disestablished, including Mr Faitala and Mrs Vea’s roles. It also proposed that nine new roles be established – with the potential for affected staff to be redeployed into the new roles should the proposal go ahead.

When the Trust decided to go ahead with the restructure Mr Faitala and Mrs Vea claimed that there were numerous instances of unjustified disadvantage in the consultation process by the Trust, including the failure to observe Pasifika values. The Trust acknowledged that it fell short in regard to observing cultural values but aspects of the process exhibited cultural understanding and empathy. The Court agreed with Mr Faitala and Mrs Vea that the Trust failed to comply with its obligation to adhere to Pasifika values when conducting its restructuring process and that the values had been expressly incorporated into the parties’ employment agreement.

Mr Faitala spoke to the importance of his culture to him. He was raised in Niue and his Niuean culture is central to his identity. He is part of the Pasifika community in Aotearoa, he lives his life consistent with Niuean values and refers to carrying with him core values of “integrity, honesty, kindness, fairness, courage and strong work ethics”. Mrs Vea gave evidence that being born and raised in Tonga that Tongan culture and Pasifika values are woven into her life. She gave evidence of how proud she was of her senior position at the Trust and the respect she received in the community because of this role.

Tikanga has already been increasingly recognised in the employment jurisdiction. For example, in Pact Group v Robinson the employee said that as a Māori her mana was being impacted by the disciplinary process the employer was undertaking. The Judge agreed and referred to Utu “the action undertaken in reciprocity”, and its link to mana. To show and reciprocate generosity enhances mana and strengthens relationships, whereas the failure to give or receive utu diminishes the mana of both parties to the relationship. The Court said the company failed to reciprocate the care, empathy and consideration she was expected to bring to her own role as a community support worker for the company.

In GF v Comptroller of the New Zealand Customs Service the Employment Court found that because Customs had incorporated tikanga and tikanga values into its policies and employment relationships, they were relevant. The Court said “the tikanga/tikanga values identified in this case seem to me to sit entirely comfortably with an area of law which is relationship-centric, based on mutual obligations of good faith, and focused (where possible) on maintaining and restoring productive employment relationships.”

Substantial awards were made by the Court to Mr Faitala and Ms Vea. Mr Faitala was awarded six months lost remuneration and $30,000 compensation. Mrs Vea was awarded one years lost remuneration and $45,000 compensation.

Diversity is often promoted and supported in the modern workplace. It is often said to focus on recognising, respecting, and valuing differences in background, gender, age, disability, and ethnicity to foster innovation and belonging. By positively promoting it in the businesses policies and recruitment processes employers should be aware that celebrating that difference may be used as a sword by the employee down the track. Conversely, not having a diversity policy may limit the pool of potential best talent for the employer to choose from. Read more....

You may have missed International Women's Day last week, but the day is celebrated annually on March 8th to honour the social, economic, cultural, and political achievements of women while advocating for gender parity. It is a global day of action aimed at accelerating gender equality.

In the United Kingdom, the Secretary of State for Education and Minister for Women and Equalities, Bridget Phillipson said “This International Women’s Day, we are celebrating all that women bring to our proud nation, as well as committing to giving back to them. That’s why I am delighted to formally launch employer action plans, which are part of our commitment to ensure women can thrive at work and tackle the gender pay gap.” 

Under the UK Government’s new Employment Rights Act large organisations with 250 or more employees will be required to introduce menopause action plans by 2027. Smaller firms will not be bound by law but will be encouraged to adopt similar measures. The action plans, which will be available to the public, are designed to help organisations make “meaningful and long-lasting change”. The action plans must take at least one action to address their gender pay gap and at least one action that supports employees experiencing menopause.

Why does it matter? Many women’s issues have received the spotlight over the last few years. Pay inequity, discrimination, sexual harassment at work and period poverty have all received attention. While awareness of the effect that menopause may have for women at work has been raised, nothing has been done to support women or workplaces deal with the issue in New Zealand.

The UK charity Wellbeing of Women – which focuses on women’s reproductive and gynaecological health – says research indicates that women find dealing with perimenopause and menopause symptoms most difficult in the workplace. Women often choose not to disclose their struggles to colleagues or bosses due to embarrassment, stigma and fear they may be discriminated against, and it is thought that around a quarter of menopausal women consider leaving their jobs due to symptoms. The charity describes awareness about menopause in workplaces as “shockingly low”.

This lack of understanding is so acute that the Royal College of Psychiatrists in the UK has recently launched its first targeted “position statement” to raise awareness about menopause and mental health. Dr Lade Smith, the president of the College, says “Menopause can have a significant yet often overlooked impact on women’s mental health and wellbeing. Women account for 51% of the population and all will experience menopause at some point. This is a societal issue for everyone. Simply put, we must do better.”

The report details the mental health impact during perimenopause, and the numbers are striking. Anxiety and low mood are relatively common side-effects of hormonal changes during menopause, but for some women menopause significantly increases the chance of developing serious mental illness. Perimenopausal women are more than twice as likely to develop bipolar disorder and 30% more likely to develop clinical depression, while hormonal and physical changes associated with menopause may lead to the relapse or trigger the development of eating disorders. Suicide rates are also higher among women of menopausal age.

It should come as no surprise that symptoms caused by menopause can affect people in the workplace. Improving support mechanisms can be beneficial not only for women but for organisations too. The charity Wellbeing of Women asserts that when menopausal women are supported at work, it can help increase staff retention, reduce recruitment costs, improve productivity and wellbeing, and lead to a more diverse workforce.

While the UK government has taken a small step to support women coping with the symptoms of menopause at work by requiring large employees to develop action, surely there is more that can be done?

Where symptoms are particularly severe, should greater leave entitlements be given to women to manage this? Businesses already shoulder the financial burden for sick leave and for employees dealing with domestic violence. But this could impose a significant burden on businesses given the potential duration of the symptoms of menopause.

Should the government pay for the leave then. The idea is not far-fetched in principle. The government already pays employees parental leave for up to 26 weeks. Employees are entitled to take this leave and there are protections to help ensure people taking parental leave do not lose their employment. ACC also supplements the income of a person who has been incapacitated. New Zealand pays a pension to retirees.

As a society, we have seen that there is merit in protecting the incomes of people in these circumstances. Why are we prepared to pay taxes to support people in the above circumstances but not for women suffering from symptoms of menopause?

The issues are not insurmountable. ACC and paid parental leave would have involved similar considerations. We take this support for granted, but they were once radical concepts. New Zealand once lead the world in supporting the rights of women. Maybe New Zealand can be aspirational again. Read more....

Changes to the pay equity laws that were passed under urgency just before the budget announcement last year have been described as a "flagrant and significant abuse of power" by a group of former female MPs from across the political spectrum. The group formed an unofficial “Select Committee” to scrutinise the controversial law change and the way it was undertaken. This finding should come as no surprise - the law change was clearly rushed through Parliament under urgency and without scrutiny with the object of freeing up “billions of dollars” for the 2025 Budget.

In New Zealand, the select committee process is a key part of lawmaking where between five to twelve MPs from various parties scrutinise bills, examine policy, and hear public submissions, usually after a bill's first reading. Committees typically have six months to gather evidence, seek official advice, suggest amendments to the legislation, and report back to the House.

At the time the Prime Minister admitted that the changes to pay equity laws would save the government “billions of dollars” but he said that this was not the motivation for changing the legislation. "It's got nothing to do with the Budget, this is about making sure we have a piece of legislation that is incredibly workable, and not as complex as it has been" he said.

This is not supported by the background to the amendments. Back in 2017 the then National-led government passed a forerunner to the current legislation for the health sector only, the Care and Support Workers (Pay Equity) Settlement Act. In 2018, when it was in opposition, National supported the Labour government’s new Equal Pay Act, as well as the Equal Pay Amendment Act in 2020. Those changes were then said to be designed to extend a pay equity process to all occupations and create a clearer pathway for making pay equity claims.

Further, for the Prime Minister’s reasoning to have credibility, these significant changes to the law should have gone through the normal select committee process, without all the secrecy, and hopefully with a mandate from their party voters at the last election.

A major argument for the amendments was the use of comparisons used in pay-equity claims. Much misunderstanding was used to support this. Minister Brooke van Velden said "You have librarians who've been comparing themselves to transport engineers", We have admin and clerical staff at Health New Zealand comparing themselves to mechanical engineers", “Social workers had compared themselves to air traffic controllers”. These cherry picked sound bites are great to support the government’s contention that the comparators were distorting pay equity outcomes. These sound bites do not capture the deep analysis that goes into establishing suitable comparators to establish a pay equity claim.

Importantly, the Committee found no evidence to support the Government’s suggestion that ‘claims have been able to progress without strong evidence of undervaluation.’ The report said that prior to the amendments New Zealand had a world leading human rights vehicle, with a robust pay equity assessment methodology with incredible research integrity, ethical practice, detailed planning, and built as a cooperative inquiry - full of checks and balances. The Committee found that it could not be “gamed”.

So why does it matter? Clearly there has been an acceptance in the recent past from both major parties that pay equity issues are real and worth addressing. It is based on the worthwhile premise that there should be equal pay for equal work. To eliminate discrimination based on gender in the workplace, most New Zealanders would agree that a person working in the same role, with similar experience, and with similar performance should in principle be paid the same. Women in the role should not be discriminated against and paid a lower rate. 

The more insidious discrimination is harder to address. It has resulted in occupations that have been undervalued and underpaid based on whether they have been male or female dominated. Achieving pay equity is complex and needs to ensure that jobs that are different but of equal value are paid similarly, as a way to achieving gender equality. The recent legislation changes simply make it harder to establish pay inequity.

So what it has meant? Overnight the amendments cancelled 33 claims from female-dominated workforces which had been seeking to prove they were underpaid in comparison to similar male-dominated industries. The amendments also significantly raised the threshold for future claims. Female-dominated workforces which are generally considered to be underpaid in comparison to those dominated by men will continue to be undervalued. Those claims were in some of our most valued occupations - Plunket nurses, community midwives, hospice nurses and health care assistants, primary care nurses, nurses in residential care. In making the amendments the government also raised the bar for future claims to be successful.

The leader of the Act Party was more forthright in his thoughts on the amendments "I actually think that Brooke van Velden has saved the taxpayer billions, she's saved the Budget for the government and she has made pay equity workable for New Zealand women, men and everyone who wants a fair go in this country". Even if you strongly disagree with the Deputy Prime Minister, you may at least respect him for being upfront about his position.

But New Zealanders should be worried for two reasons. Firstly, some of our most valued occupations that have been historically dominated by women will continue to be underpaid for the work they do, compared to occupations that have historically been male dominated. Secondly, that previously hard won recognition by both major political parties of the importance of pay equity was stripped away by retrospective legislation, passed overnight under urgency, with no political mandate other than to save money. Read more.....