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Toil & Trouble
4 mins to read

Significant rewrite of bill ending employment by mutual consent

The Education and Workforce Select Committee has recommended passing the bill following changes to make it fairer to employees.

WATCH: Source Services senior employment lawyer Gerard Elwell speaks with Fiona Rotherham.

Key points
  • What’s at stake: The Act Party bill aimed at making it easier to negotiate an exit of staff by mutual consent has had a significant rewrite through the select committee process.
  • Background: Employers can’t currently make an offer of payment to an employee to leave their job without running the risk of a personal grievance being taken. The new bill gives protection for those conversations but has tightened protections for employees around the employer acting in good faith and that an employee can decline to have that conversation.
  • Key players: Employers, employees, Employment Relations Authority.

Act Party legislation that would allow for employment to be ended by mutual consent has been passed by a majority of the Education and Workforce Select Committee after a significant rewrite.

The Employment Relations (Termination of Employment by Agreement) Amendment Bill will now proceed to a second

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Fiona Rotherham Tue, 04 Nov 2025
Contact the Writer: fiona@nbr.co.nz
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Key points
  • What’s at stake: The Act Party bill aimed at making it easier to negotiate an exit of staff by mutual consent has had a significant rewrite through the select committee process.
  • Background: Employers can’t currently make an offer of payment to an employee to leave their job without running the risk of a personal grievance being taken. The new bill gives protection for those conversations but has tightened protections for employees around the employer acting in good faith and that an employee can decline to have that conversation.
  • Key players: Employers, employees, Employment Relations Authority.
Significant rewrite of bill ending employment by mutual consent
Toil & Trouble,
111654
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