More flexible dismissal process for high-income employees
Published: 29 November 2024
Workplace Relations and Safety Minister Brooke van Velden has announced an upcoming change to the Employment Relations Act that will enable employers to ensure they have the right fit for their high impact leadership and specialist roles.
On this page
The change will introduce an income threshold of $180,000 per annum for unjustified dismissal personal grievances, meaning employees earning above that will be unable to raise an unjustified dismissal claim.
This offers workers and employers more choice when negotiating contracts. Employers and employees are free to opt back into unjustified dismissal protection if they agree to or negotiate their own dismissal procedures that work for them.
This change delivers on the ACT-National coalition agreement by setting an income threshold above which personal grievances cannot be pursued. It will be progressed through the Employment Relations Amendment Bill that the Government aims to introduce in 2025.
Read the Minister’s announcement on the Beehive website.
More flexible dismissal process for high-income employees(external link) — Beehive.govt.nz
Find out more in our employment legislation reviews section.
MBIE media contact
Email: media@mbie.govt.nz
https://www.mbie.govt.nz/about/news/more-flexible-dismissal-process-for-high-income-employees
Please note: This content will change over time and can go out of date.