The government has confirmed plans to abolish the long-standing “30-day rule” that currently requires new employees to adhere to union-negotiated collective agreements during their first month on the job, even if they choose not to join a union.
The move, announced by Workplace Relations and Safety Minister Brooke van Velden, is part of a broader suite of changes under the forthcoming Employment Relations Amendment Bill, expected to pass by the end of 2025. The government says the repeal is aimed at increasing flexibility, promoting personal choice, and reducing administrative overhead for businesses.
“Not only is the status quo convoluted and confusing, the process adds another administrative cost on top of many others, and those costs are dragging down workplace productivity,” said van Velden.
Under current legislation, if a collective agreement is in place at a workplace, all new employees must initially be employed under terms matching that agreement, regardless of union membership. This rule, introduced by a previous government, was designed to offer new hires a level of protection while they considered union membership.
The removal of this requirement will allow individual employment agreements to be negotiated from the first day of employment. According to van Velden, this means new hires will have the ability to tailor their contracts to fit personal preferences or specific job requirements immediately upon starting a role.
90-Day Trials Available Immediately
Another key consequence of the repeal is the earlier application of 90-day trial periods, which have been reinstated under the ACT-National coalition. Under the current framework, these trials could not begin until the 30-day period under collective terms had ended. The change will allow employers to implement the trial from day one, provided the employee enters into an individual agreement.
Van Velden emphasised the coalition’s intent, saying the expanded trial availability “supports workers that may struggle to gain employment and also give employers greater confidence around hiring.”
Changes to Union Communication and Access
The Employment Relations Amendment Bill will also overhaul how unions can interact with new employees. The government will eliminate the use of the “active choice form”—a document created by the previous Labour government that allowed new hires to formally indicate interest in union membership.
Additionally, unions will no longer be permitted to supply information for employers to distribute to new workers. However, employers will still be required to inform new hires about the existence of relevant unions, how to contact them, and the binding nature of collective agreements for union members.
“I am striking the right balance between ensuring information about unions is available to new employees, protecting the personal choice of workers and reducing the compliance burden for employers,” van Velden said.
Industry Support and Anticipated Opposition
Business groups have welcomed the reforms, praising the increased flexibility and reduction in bureaucratic requirements. Katherine Rich, Chief Executive of BusinessNZ, voiced strong support for the repeal.
“Whatever a new employee chooses to negotiate – collective agreement or individual agreement – should be respected immediately, not after 30 days,” Rich said. “There should be no automatic inclusion of a new employee into the terms of a union’s collective agreement without that person’s agreement.”
The reforms reflect longstanding calls from employer groups to reduce compliance costs and modernise workplace relations. The government argues that the shift will boost productivity by removing procedural bottlenecks.
Legislative Timeline and Outlook
The Employment Relations Amendment Bill is set to be introduced to Parliament later this year, with the government aiming to enact it by the end of 2025. The political path forward may not be without friction, as unions and opposition parties could mobilise against provisions perceived as weakening worker protections.