Raising a pay equity claim

Employees and unions can raise a pay equity claim. Claims are raised with the employer of the employee(s) covered by the claim.

To be eligible to raise a claim, the claimant must show that:

• they meet the circumstances and requirements (see Step 1)
• the claim has merit (see Step 2).

If the employer agrees the above criteria are met, the claim can progress to the pay equity assessment process. This process might lead to a pay equity settlement, but it’s not guaranteed. Everyone needs to act in good faith, for example, making best efforts to work through the process in a timely way.

Note: All unsettled or undetermined claims as of 14 May 2025 are discontinued. You may raise the claim again using the process on this page if the new circumstances and requirements are met, and the claim has merit (see Step 1).

Process for employees

An individual or a union can raise a pay equity claim.

If you want to raise an individual claim, this is the process to follow.

If a union has raised a claim with your employer, and you are not a member, but you do the same or substantially similar work, you are still covered by the claim unless you opt out. Your employer must notify you of this. Talk to the union or a union representative to find out more about how this works.

1. Check eligibility

To be eligible to raise a claim you must meet the following circumstances and requirements.

• Your role must be performed by a workforce that is at least 70% female and has been over the past 10 consecutive years.
• There are reasonable grounds to believe the work has been historically undervalued and is currently subject to systemic sex-based discrimination.
• You are not covered by a union-raised claim.
• You must not have already raised the claim using another process under the Human Rights Act 1993 or personal grievance through the Employment Relations Authority (ERA).
• A new claim cannot be raised within 10 years of a previous pay equity claim settlement for the same work and employees (unless the ERA or Employment Court allows it).

2. Prepare the claim

Your claim must be in writing and include:

• a statement that it is made under the Equal Pay Act 1972
• your name and address for service
• the date of making the claim
• your occupation and position
• a description of your work
• the name and address for service of anyone you have acting on your behalf, for example, a lawyer, employment advocate or family member
• evidence that the claim has merit, which means:
  • the work is performed by a workforce that is at least 70% female, and has been over the past 10 consecutive years
  • there are reasonable grounds to believe the work has been historically undervalued and is currently subject to systemic sex-based discrimination.

3. Submit the claim

Deliver the claim in writing (email or hard copy) to your employer. Your employer must acknowledge receipt of the claim within 5 working days.

4. Employer decides whether the claim meets the circumstances and requirements and has merit

Your employer has 60 working days to decide whether the claim meets the circumstances and requirements and has merit — or notify you of an extension.
If the claim meets the circumstances and requirements and has merit, your employer must:

• notify you
• begin the pay equity bargaining process
• provide information about the process.

If the claim does not meet the circumstances and requirements or does not have merit, the claim is discontinued and your employer must notify you. The notice must include:

• written reasons for their decision
• an explanation of the effect their decision has, and
• what your options are if you want to challenge the decision.

You and the employer can agree to reverse the decision.

Find out more about how your employer will decide whether your claim will proceed in Step 3 on:

Responding to a pay equity claim

5. Pay equity assessment

The parties involved in a pay equity claim undertake an assessment process to determine whether the employee’s work is undervalued on the basis of sex.

This involves assessing the work of the claimants and comparing it to the work of suitable comparators that are not subject to sex-based undervaluation.

Find out more about the pay equity assessment and how to select comparators in Step 4 on:

Responding to a pay equity claim

6. Resolution

Negotiate a written settlement agreement if sex-based undervaluation is confirmed.

A settlement may be phased in (for a maximum of 3 years) if you and your employer agree or if the ERA determines that it should be.

If a settlement is reached, the new pay rate is implemented in accordance with the terms of the settlement agreement.

If no settlement is reached, you can use mediation, facilitation or apply to the ERA for a determination.

Find out more about what goes in a written settlement agreement in Step 6 on:

Responding to a pay equity claim

Mediation

Employment Relations Authority(external link)

Process for unions

1. Check eligibility

• Confirm the role is being performed by a workforce that is at least 70% female and has been over the past 10 consecutive years.
• Make sure there are reasonable grounds to believe the work has been historically undervalued and is currently subject to systemic sex-based discrimination.
• Confirm 1 or more of your members perform the work relating to the claim. Exclude any of your members that have chosen to raise their claim through another process, for example, under the Human Rights Act 1993 or pursing a personal grievance through the ERA.
• Make sure all the employees you are intending to be covered by the claim do work that is the same or substantially similar.
• A new claim cannot be raised within 10 years of a previous settlement for the same work and employees (unless the ERA or Employment Court allows it).

2. Prepare the claim 

The claim must be in writing and include:

• a statement that it is made under the Equal Pay Act 1972
• the name and the address for service of the union — or each union if more than 1 union is raising a joint claim
• the date of making the claim
• a description of the work the employees covered by the claim do
• an explanation of how all the employees covered by the claim (including where there are multiple employers) do work that is the same or substantially similar, including evidence of this
• evidence the claim has merit, which means:
  • the work is being performed by a workforce that is at least 70% female and has been over the past 10 consecutive years
  • there are reasonable grounds to believe the work has been historically undervalued and is currently subject to systemic sex-based discrimination.

If the claim is raised with multiple employers, it must also include:

• a notice to each employer of their obligation to enter a multi-employer pay equity process agreement (see step 4)
• the name of each employer
• a brief explanation of how the work done by employees covered by the claim is the same or substantially similar.

The names of the all the employees who are covered by the claim do not need to be in the claim.

3. Submit the claim

Deliver the claim in writing (email or hard copy) to the employer(s). The employer(s) must acknowledge receipt of the claim within 5 working days.

4. Multi-employer coordination (if applicable)

If the claim involves multiple employers, they must:

• form a multi-employer pay equity process agreement
• decide on representation and decision-making processes.

Find out more about what happens in a multi-employer claim in Step 2 on:

Responding to a pay equity claim

5. Employer decides whether the claim meets the circumstances and requirements and has merit

The employer has 60 working days to decide if the claim meets the circumstances and requirements and has merit — or notify you of an extension.

If the claim meets the circumstances and requirements and has merit, the employer must:

• notify you
• begin the pay equity bargaining process, and
• provide information about the process.

If the claim does not meet the circumstances and requirements or does not have merit, the claim is discontinued, and the employer must notify you. The notice must include:

• written reasons for their decision
• an explanation of the effect their decision has, and
• what your options are if you want to challenge the decision.

You and the employer can agree to reverse the decision.

Find out more about how the employer will assess the claim:

Responding to a pay equity claim

6. Pay equity assessment

The parties to a pay equity claim undertake an assessment process to determine whether the employee’s work is undervalued on the basis of sex. This involves assessing the work of the claimants and comparing it to the work of suitable comparators not subject to sex-based undervaluation.

Find out more about how the claim is assessed and how to select comparators in Step 4 on:

Responding to a pay equity claim

7. Negotiate and vote on a proposed settlement

Negotiate a proposed written settlement agreement if sex-based undervaluation is confirmed and vote on it.

Unions must have a process for employees covered by the claim (not just union members) to vote on a proposed settlement.

A vote must take place, and all votes must have equal weight.

Before the voting process begins, unions must give reasonable notice to both the employees and the employer(s). Notice to the employees must include:

• that they are entitled to vote
• the date(s) and method for making a vote
• an explanation that if the proposed settlement agreement is approved (by majority), the union must sign it and that once signed, the employee’s employment agreement will be varied and they cannot bring their own individual claim
• an explanation that the final date for voting is also the final date an employee who is not a member of the union can opt out of the claim.

Employees must be given a copy of the proposed settlement agreement.

8. Resolution

Confirm the written settlement agreement.

Settlement may be phased in (for a maximum of 3 years) if the union(s) and employer(s) agree or if the ERA determines that it should be.

If a settlement is reached, the new pay rate is implemented in accordance with the terms of the settlement agreement.

If no settlement is reached, you can use mediation, facilitation or apply to the ERA for a determination.

Find out more about what goes in a written settlement agreement in Step 6 on:

Responding to a pay equity claim

Mediation 

Employment Relations Authority(external link)

Role of the Employment Relations Authority (ERA)

All parties involved in a pay equity claim can ask for help from the Employment Relations Authority (ERA), for example, if:

• there is a dispute over whether the claim is eligible or has merit or whether the work is undervalued
• there is disagreement over appropriate comparators or the scope of the claim
• the parties cannot agree on remuneration or whether it should be phased in.

The ERA can provide facilitation (help the parties work it out together) or make a determination (make the decision if the parties cannot). Before making a determination, the ERA must consider whether the parties have been to mediation or used facilitation and may direct the parties to try those first.

The ERA cannot:

• override an employer’s decision to opt out of a multi-employer claim
• decide whether parties must use a previously settled claim as a comparator
• award backpay
• require a review or review process of a settlement. 

Equal Pay Act 1972

The Equal Pay Act 1972 prohibits discrimination in pay on the basis of sex and requires employers to pay women and men the same pay for doing the same job (equal pay) and for doing different jobs of equal value (pay equity).

Part 4 of the Equal Pay Act 1972 covers the pay equity claims process:

Equal Pay Act 1972 – New Zealand Legislation (external link)