New law on pay deductions for partial strikes

21 July 2025 1 min read

By Julia MacGibbon and Mikayla Mawson

At a glance

  • Employers can now legally deduct pay during partial strikes - either a flat 10% or a proportionate amount as defined by law.
  • The change aims to standardise how partial strike actions are handled across workplaces.

The Employment Relations (Pay Deductions for Partial Strikes) Amendment Act 2025 has now come into force. This legislation provides employers with a clear legal basis to make pay deductions when employees engage in partial strike action.

Under the new law, employers may choose to:

  • deduct a flat 10% of the employee’s pay for the duration of the partial strike; or
  • apply a proportionate deduction, calculated using the method prescribed in the legislation.

This change is intended to ensure consistency and fairness in how partial strike action is managed across workplaces.

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