Why NZ Government agrees to remove the 30-Day rule

Published 9 April 2025 | 2 min read

For many Kiwi employers, navigating the first few weeks of a new hire's employment can feel like stepping through a minefield of compliance.

If there’s a collective agreement in place, you’re locked into applying its terms for the first 30 days, even if the new hire has no interest in union membership.

This outdated requirement has made it harder for businesses to move quickly, negotiate individual terms, and make genuine progress in onboarding.

The question is: why should both parties be restricted from creating terms that suit them best, right from day one?

A drag on productivity

Plenty of New Zealand business owners have quietly voiced frustration. They’ve onboarded great candidates who were keen to tailor their terms, only to hit a legal wall because of the 30-day restriction.

The extra admin mirroring the collective agreement, managing union communications, completing mandatory forms adds up.

For many small-to-medium businesses already stretched thin, this compliance burden has created delays and cost them valuable time.

What rule's on the chopping block?

That’s about to change.

The Government has announced plans to repeal the 30-day rule, freeing up employers and employees to negotiate individual terms from day one.

According to Workplace Relations and Safety Minister Brooke van Velden, the rule has become a barrier to workplace productivity and personal freedom of choice.

The Employment Relations Amendment Bill, expected to pass by the end of 2025, will roll back this requirement and strip out several layers of unnecessary red tape.

The key legislation that is changing

Here’s what’s changing and why it matters for your business:

• The 30-day rule will be repealed, allowing individual agreements to differ from collective agreements immediately.
• New hires won’t need to wait to agree to personalised terms, giving employers more flexibility.
• 90-day trial periods will be more widely available, as they can apply from day one under an individual agreement.
• Employers will no longer need to distribute union materials or use the ‘active choice form’ introduced by the previous government.
• You’ll still need to tell new employees they can join a union and explain how to contact it but without all the extra paperwork.

A win for flexibility

This repeal gives businesses more breathing room to hire on their terms, cut back on bureaucracy, and focus on building stronger employment relationships from the start.

It drives efficiency by removing a blanket rule that limited both employer and employee choice. You’ll still have a duty to provide basic information about union rights but without the tangled process that’s been in place since 2021.

For Kiwi managers, business owners and HR professionals, this is a welcome shift toward practical, people-centred employment law that proves we can reduce compliance without sacrificing employee protections.

Note: This information is based on official details from the NZ Government and is subject to change. Always refer to the latest guidelines for the most accurate information. Visit NZ Government here.