Equal Pay Act 1972

Pay equity claims - Raising pay equity claims

13F: Meaning of has merit

You could also call this:

"What 'has merit' means in a pay equity claim"

When you make a pay equity claim, it has merit if it is about work that women mostly do. You also need to show there are good reasons to think the work has been undervalued in the past. This means the work was not paid as much as it should have been.

The work may have been undervalued because of its history, or social and cultural factors. It may have been seen as women's work, and that is why it was not paid as much. The work may need skills that are usually associated with women, and these skills may not have been recognised as important.

The work may still be undervalued now because of things like the labour market, or the way the industry or sector works. It may be that employees do not have much power to negotiate their pay, or there is not much competition for jobs. You need to consider all these factors when you make a pay equity claim.

In this context, the relevant labour market means the part of the labour market where workers have similar skills, responsibilities, and working conditions. You can find more information about the Equal Pay Amendment Act 2025 on the New Zealand legislation website. The relevant labour market is an important concept to understand when making a pay equity claim.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS427254.


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13E: Circumstances in which unions and employees may raise pay equity claims, or

"When you can ask for fair pay if you think you're not being paid the same as others"


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13G: Requirements relating to all pay equity claims, or

"What you must do when making a pay equity claim"

Part 4Pay equity claims
Raising pay equity claims

13FMeaning of has merit

  1. A pay equity claim has merit if—

  2. the claim relates to work that is predominantly performed by female employees; and
    1. there are reasonable grounds to believe that the work—
      1. has been historically undervalued for 1 or more of the reasons set out in subsection (2); and
        1. continues to be subject to systemic sex-based undervaluation, taking into account all relevant matters (including the reasons set out in subsection (3)).
        2. The reasons for historical undervaluation of work referred to in subsection (1)(b)(i) are as follows:

        3. the origins and history of the work, including the manner in which wages have been set:
          1. any social, cultural, or historical factors:
            1. characterisation of the work as women’s work:
              1. the nature of the work requires an employee to use skills or qualities that have been—
                1. generally associated with women; and
                  1. regarded as not requiring monetary compensation.
                  2. The reasons for continued systemic sex-based undervaluation of work referred to in subsection (1)(b)(ii) are—

                  3. features of the relevant labour market, industry, sector, or occupation, including the following:
                    1. a dominant source of funding across the relevant labour market, industry, sector, or occupation:
                      1. a lack of effective bargaining in the relevant labour market, industry, sector, or occupation:
                        1. the market share of the employer as an employer in the relevant labour market:
                          1. a lack of competition from other employers seeking to employ persons in the relevant labour market:
                            1. a lack of power on the part of employees to influence the relevant labour market:
                              1. occupational segregation or segmentation in relation to the work:
                                1. any other features that are prescribed in regulations; and
                                2. failure by the parties to a pay equity claim to properly assess or consider the remuneration that should be paid to properly account for—
                                  1. the nature of the work; and
                                    1. the levels of responsibility associated with the work; and
                                      1. the conditions under which the work is performed; and
                                        1. the degree of effort required to perform the work.
                                        2. In subsection (3)(a), relevant labour market means that part of the whole labour market that comprises all workers who, as a matter of fact and commercial common sense, are substitutable because the work they perform involves—

                                        3. the same or substantially similar skills and responsibilities; and
                                          1. experience under the same or substantially similar conditions; and
                                            1. the same or substantially similar degrees of effort.
                                              Notes
                                              • Section 13F: replaced, on , by section 11 of the Equal Pay Amendment Act 2025 (2025 No 21).