MBIE Facing Legal Action Over Attempt To Curb Flexible Work Including Working From Home Arrangements – PSA

The PSA has just filed legal action with the Employment Relations Authority over MBIE’s disregard of existing flexible work arrangements including working from home which are protected under the PSA’s collective agreement with the Government department.

The Ministry for Business, Innovation and Employment (MBIE) has recently introduced a new Flexible Work Policy to align with the Government’s directive to restrict flexible work arrangements for public service workers including reducing days working from home. This directive is also itself subject to legal action by the PSA.

“Cracking down on flexible work is the wrong approach from employers in 2025,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

“Working from home and flexible work are generally a win-win for employers and employees, that’s why we are asking MBIE to stick with current flexible work arrangements and look for more ways to enable flexibility which we know is particularly valuable for women, people with disabilities and everyone with caring responsibilities.

“The PSA originally raised objections to MBIE’s flexible work guidance in June 2025 and then tried to resolve this dispute through mediation, but this failed. MBIE hasn’t been willing to backdown, leaving the PSA with no choice but to take this step to protect the rights of MBIE staff included in existing agreements.

“The collective agreement binds MBIE to supporting flexible work, so its new policy is simply unlawful. We are seeking a determination from the ERA that MBIE is violating the ‘flexible by default’ approach which forms part of its collective agreement with members.

“Employees at MBIE have a right to flexible work arrangements which suit their individual circumstances unless there is a good business reason not to. Now MBIE is saying working from home and other arrangements must be re-negotiated, their position is that all new arrangements are to be reviewed every six months with the aim of reducing the number of days worked from home.

“MBIE wants to meet individually with employees to tell them they need to make a new flexible work request which will be considered under the more restrictive policy,” said Fitzsimons.

“MBIE can’t just change existing agreements which are protected under the collective.

“This is a backward step, going against all international evidence and trends. Most impacted employees are women, and this change will also disproportionately impact people with a disability.

“The Government claims to be concerned about raising productivity – members say flexible work helps them be more productive, but clearly in the public sector this doesn’t suit a government which is determined to keep disrespecting public service workers and eroding their rights.

“Flexible work is good for employers and good for workers. The PSA will keep fighting to protect the rights of members to what are accepted practices in modern workplaces the world over.”

The PSA is hoping the ERA will allow the MBIE case to be joined to the broader case against Te Kawa Mataaho Public Service Commission.

Previous statements

11 December 2024 PSA takes legal action to stop Govt cutting working from home arrangements

5 Dec Research shows working from home improves public service productivity

Background

In 2018 the PSA entered in into an agreement – the Gender Pay Principles, following legal action in the Employment Court to establish principles governing work performed by women in accordance with the Equal Pay Act 1972. The follow up agreement, Flexible Work by Default, gave effect to these principles and was signed by the PSA, CTU, the State Services Commission (as it then was) and the Ministry for Women in 2020. This agreement is contained in many collective agreements throughout the public sector.

Note:

The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.