The Crimes (Theft by Employer) Amendment Act 2025 has been signed into law

At a glance

• The Crimes (Theft by Employer) Amendment Act 2025 clarifies that failing to pay wages and statutory entitlements is considered theft under the Crimes Act 1961.
• New Zealand has seen cases of employers underpaying or withholding wages, with existing protections including prosecution, penalties, and recovery of monies.
• The Act aims to further protect victims of wage theft and hold employers accountable with criminal sanctions.

The Crimes (Theft by Employer) Amendment Act 2025 has received royal assent and has now been formally signed into law. The new law clarifies that an employer failing to pay an employee their wages, and particular statutory entitlements, is theft under the Crimes Act 1961. The offence includes the requirements of the failure being intentional, and without reasonable excuse.

The New Zealand employment jurisdiction has occasionally seen cases where employers have been found to underpay employees or withhold wages. Existing avenues to protect employees against these actions primarily includes prosecution by the Labour Inspector, penalties, and recovery of monies. The purpose of the Act is to further protect victims of wage theft and ensure that employers who owe wages and intentionally do not pay them to the employee, are held accountable by the possibility of criminal sanctions. 

The Act imposes the below penalties:

• If the value stolen does not exceed NZD500, imprisonment for a term not exceeding three months.
• If the value stolen exceeds NZD500, but does not exceed NZD1,000, imprisonment for a term not exceeding one year.
• If the value stolen exceeds NZD1,000, imprisonment for a term not exceeding seven years.