The Fair Pay Agreement legislation has been repealed with effect from 20 December 2023. The dismantling of the Fair Pay regime was part of the new Government’s 100 Day Plan, which continues to deliver on its promises to further support New Zealand businesses. The changes were implemented prior to any Fair Pay Agreements being finalised, so the Fair Pay Agreement system has for all intents and purposes been abolished, meaning that it will no longer become a part of the employment relations framework in New Zealand.
Fair Pay Agreements were essentially a 'one-size' fits all system, which would have required employers in particular industries to apply the same terms and conditions of employment to all employees – irrespective of the size, commercial viability and resources of an employer’s business.