Pay Equity Obligations: Who Qualifies and What You Get
Learn how employers in New Zealand can ensure equal pay for work of equal value and meet their legal obligations.
These obligations require employers to ensure that workers receive equal pay for work of equal value. This framework is designed to promote fairness within the workplace by addressing how different types of work are compensated.
Who it's for
This requirement applies to all employers operating within the country. Regardless of the size of your business or the industry you work in, these obligations are part of the broader employment landscape that governs how workers are compensated.
What you get
Employers receive guidance on how to ensure that their compensation structures provide equal pay for work of equal value. This guidance is intended to help you navigate the complexities of fair compensation and ensure that your business meets its responsibilities toward its workforce.
What it costs you
Meeting these obligations involves a commitment of both time and financial resources. You will need to dedicate time to conducting thorough internal audits of your current payroll and compensation structures. Beyond the administrative time required for these reviews, you may also need to fund salary adjustments to ensure that any identified pay gaps are corrected and that your compensation remains equitable.
The catch to know
A common misunderstanding regarding these obligations is the scope of "equal pay." It is not strictly limited to ensuring that two people in the exact same role earn the same amount. The requirement extends to comparable roles, meaning you must look at whether different roles that hold similar value to the business are being compensated fairly in relation to one another.
How to apply
- Perform a thorough review of your existing internal pay structures and roles.
- Conduct an internal audit to identify any discrepancies in how different roles are valued and paid.
- Make the necessary salary adjustments to resolve any gaps and ensure your compensation is equitable.
- Follow the guidance provided by Employment New Zealand to confirm your business is meeting its obligations.