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Friday, September 11, 2026

Taking your Australian business across the Tasman? Here are 10 ... - HRD America

A look at important difference in employment law between Australia and New Zealand

If you are involved in a business that operates on both sides of the Tasman, it's important to understand the key employment law differences between Australia and New Zealand.

As a firm, we’ve had conversations with people about the key differences in the two sets of employment laws including approaches to workplace change and disputes.

Below we set out the main differences and 10 key things to know if you are an Australian business operating, or looking to operate, under New Zealand employment law.

Statutory duty of good faith

A defining feature of New Zealand’s employment law landscape is the overarching statutory duty of good faith which is incorporated into all aspects of an employment relationship.

The courts regard an employment agreement as a relational contract, and not just a contract governed by its express terms.

This duty requires parties to be “active and constructive in establishing and maintaining a productive employment relationship in which the parties are, among other things, responsive and communicative.”

It also requires an employer that is proposing to make a decision that could have an adverse impact on the continuation of an employee’s employment to be given access to information relevant to the decision and an opportunity to comment on the information before the decision is made.

When it comes to the duty of good faith, restructures are a potential pitfall for...



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