New bill could give flexibility for deducting employees’ pay for partial strikes, but there are risks
The Employment Relations (Pay Deductions for Partial Strikes) Amendment Bill was recently introduced to Parliament. The Bill reintroduces an employer's ability to make pay deductions in response to partial strikes by employees, a move not seen since a similar provision was revoked in 2018.
Partial strikes are strikes that normally involve a reduction in an employee's normal output or rate of work (while still attending work) or some other breach of their employment agreement that does not involve a total withdrawal of labour for any period of time.
Currently if an employee is engaged in a partial strike, their employer cannot deduct their pay unless they suspend the employee or issue a lockout notice.
Partial strike’s impact on output 
Under the proposed Bill, employers can elect to either deduct a flat rate of 10 per cent of an employee’s pay or deduct a proportionate amount that reflects the partial strike's impact on the employee's work output. This amendment intends to provide employers with more flexibility in handling strikes that involve a reduction in work rather than a complete work stoppage.
The Bill also outlines specific processes and requirements for issuing notices of deductions and establishes a dispute resolution mechanism if disputes arise.
Risk of wage theft
With the recent enactment of the Crimes (Theft by Employer) Amendment Act 2025, there are heightened risks for employers. Incorrectly implementing pay deductions could lead to allegations of theft under this new Act if deductions are seen as an unlawful withholding of wages owed to employees.
The Bill had its first reading on 10 December 2024 and the Education and Workforce select committee provided its report on 14 April 2025. The Bill is currently awaiting its second reading. You can read the Bill as it is currently drafted here.
Hamish Kynaston is a Partner at Buddle Findlay in Wellington. Peter Chemis is a Partner at Buddle Findlay in Wellington. Susan Rowe is a Partner at Buddle Findlay in Christchurch. Sherridan Cook is a Partner and National Chair at Buddle Findlay in Auckland. Helen Pryde is a Special Counsel at Buddle Findlay in Auckland. Nicola Cuervo is a Special Counsel at Buddle Findlay in Wellington. Shaun Brookes is a Special Counsel at Buddle Findlay in Christchurch. Eleanor Mishra is a Senior Associate at Buddle Findlay in Christchurch. Emma von Veh is a Senior Associate at Buddle Findlay in Wellington. Jessica Taylor is a Senior Associate at Buddle Findlay in Wellington. Louise Robertson is a Senior Associate at Buddle Findlay in Wellington. Tasha Ioelu is a Senior Associate at Buddle Findlay in Auckland.
