Legislation that lets workers talk about salaries likely to pass into law

Labour MP Camilla Belich. Photo / Mark Mitchell

By Lillian Hanly of RNZ

A Labour Party member’s bill that seeks to stop employers enforcing gag orders on workers talking about their salaries is likely to pass into law.

Labour MP Camilla Belich’s bill – called the Employment Relations (Employee Remuneration Disclosure) Amendment Bill – passed its second reading on Wednesday night.

Currently, employers can put pay secrecy clauses in workers’ contracts, preventing them from discussing their salaries with colleagues.

Belich’s Bill would make pay gag clauses unenforceable, meaning employers could not take legal action if an employee does talk about pay.

She told RNZ she was pleased to see the bill progress.

“Ending the chilling effect of pay secrecy will allow employees to discuss their pay more freely, and allow any unfairness or discrimination in pay to be remedied.”

She said it was a “small step” towards “greater transparency and equality” in the workplace.

The National Party supported the bill at first reading and indicated during the debate for the second reading it would continue to do so, meaning it could potentially become law.

The acting chair of the education and workforce select committee, Vanessa Weenink, said the bill was a sensible step in the right direction.

“I was proud of our Parliament and proud of National’s ongoing work to reduce the gender pay gap,” she said. “I want to highlight the voluntary pay gap calculator for businesses and hope when this bill becomes law, that it opens up discussions about pay.”

Act and New Zealand First voted against the amendment bill, and are likely to do so again at third reading.

- RNZ