Wage Theft Now a Criminal Offence in New Zealand
- Nairn Fisher
- May 21
- 1 min read
The Crimes (Theft by Employer) Amendment Act 2025, which came into force in March 2025 amends the Crimes Act 1961, making it a criminal offence for employers to intentionally withhold wages or other monetary entitlements from employees without a reasonable excuse.
What Constitutes Wage Theft?
Under the new law, wage theft includes the intentional failure to pay:
Wages or salaries
Holiday pay
Minimum wage entitlements
Other monetary benefits owed under employment agreements or statutes like the Holidays Act 2003 and the Minimum Wage Act 1983.
The key elements are intentionality and lack of a reasonable excuse. Unintentional errors, such as genuine payroll mistakes or temporary cash flow issues, may not constitute a criminal offence.
Penalties for Employers
Penalties under the Act are tiered based on the amount owed:
Up to NZD 500: Up to 3 months' imprisonment
NZD 500–1,000: Up to 1 year imprisonment
Over NZD 1,000: Up to 7 years imprisonment
Additionally, company directors or payroll officers who are directly involved in the decision to withhold wages may also face criminal liability.
Reporting and Enforcement
Employees can now report wage theft directly to the police, streamlining the process compared to previous civil claims.
Defences Available to Employers
Employers may defend themselves by demonstrating that the failure to pay was unintentional and that they had a reasonable excuse, such as a genuine payroll error or a temporary cash flow issue.
