No more total remuneration? New Bill proposes changes to KiwiSaver approach

General, Bill, Employment Law / 28 June 2023
No more total remuneration? New Bill proposes changes to KiwiSaver approach

The Employment Relations (Protection for KiwiSaver Members) Amendment Bill 2023 is being considered by Parliament and seeks to restore grounds for personal grievance claims where employees are “adversely affected” in employment by reason of their KiwiSaver or other superannuation membership, which is the same position initially in place when KiwiSaver was introduced.

The up shot of this is that employers could no longer contribute to KiwiSaver under “total remuneration” package terms, because this would be viewed as an “adverse affect” on the relevant employee.

What this means is that employers that contribute to an employee’s KiwiSaver under ‘total remuneration’ would need to stop doing so and start to contribute to an employee’s KiwiSaver scheme on top of their base salary. Employers would also need to review and update their individual employment agreements, for current and new employees, to include the legislative changes. Employers that fail to do so could be open to a personal grievance claim from employees. If passed, changes would also be made to section 101B of the KiwiSaver Act 2006, to the same effect.

Message for Employers

This Bill is currently at the initial stage of being heard by parliament. We will continue to update you as the Bill progress through the parliamentary process.

Disclaimer: We remind you that while this article provides commentary on employment law, health and safety and immigration topics, it should not be used as a substitute for legal or professional advice for specific situations. Please seek legal advice from your lawyer for any questions specific to your workplace. 

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