Disability in the Workplace

Employment Contracts

7 May 2025 (Last updated 7 May 2025)

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Despite 1 in 5 New Zealand workers having a disability, disability in the workplace is still unfortunately perceived in a negative light and considered a detriment to overall productivity. Most disabled employees also have no or little support in the workplace. Many highly capable New Zealanders could be part of the workforce if disability in the workplace was integrated meaningfully.

In this guide for employers, we discuss disability in the workplace, the relevant legislation around disability in the workplace, and other things employers need to know. Please note that the information provided below is general and is not intended to act as advice. If you need help with employment relations, consult a professional.

Disability in the workplace

The term ‘disability’ covers a variety of situations. With disabled people making up nearly a quarter of the working aged population in New Zealand, employers have the opportunity to tap into a pool who can make significant contributions to the workplace. There are several myths about disabled people that need to be broken, and employers can ensure diversity in the workplace.

“Disability’ can be used to refer to several impairments and factors that contribute to a person’s inability to participate in certain roles or activities. These impairments range considerably from physical to mental, sensory, intellectual, psychiatric and neurological.

When approaching the subject of disability, it’s important to understand what defines a disability for an employee and the impact that different impairments may have:

  • Not all disabilities are clearly visible or easy to spot purely based on observation, particularly mental, sensory and psychiatric impairments.
  • Disabilities come from a range of sources such as personal accidents, illnesses, disorders and family genes.
  • Disabilities can be permanent or temporary, with a major or minor impact on a person’s day-to-day living.
  • Disability at work can make it difficult for people to perform certain tasks, communicate with others, and learn new skills, ideas or techniques.

Myths about disabled employees

There are several misconceptions and myths about disabled employees that hinder employees from considering them. For example, a big myth that exists is disabled employees don’t want to work. However, there is data that proves otherwise. The 2013 Census indicated that 75% of disabled people want to work and yet the 2017 Labour Force Survey has highlighted that only 25% of disabled people participate in employment. The financial opportunity for Kiwi businesses of this employment is vital and if harnessed properly can benefit both employers and employees.

Small businesses and employers feel that hiring disabled employees may increase health and safety risks. But disabled employees have clear strategies and systems in place to manage their health and safety issues. Which means they are also cheaper to maintain in employment. For small businesses, cost is a big factor, and they often assume that providing accommodations for disabled people can be expensive. Most disabled people don’t need anything different to perform their jobs and for those who do, the cost is minimal. Only 10% of disabled workers under the age of 65 reported they had modifications or specialist equipment in their workplace. The most commonly made reasonable accommodation is flexible working arrangements. The modifications done for disabled employees are financially cost-neutral and beneficial to the company.

Disability in the workplace and legislation

In 2008, New Zealand agreed to the United Nation’s Convention on the Rights of Persons with Disabilities (CRPD) affirming that disabled have the same rights and freedoms as disabled people. When New Zealand agreed to the CRPD, it agreed to progressively realise the rights it contained by enforcing them through domestic law policy and practice. The Human Rights Act 1993 (HRA) and the New Zealand Bill of Rights 1990 (NZBORA) protect the right of disabled people to be free from discrimination, with some exceptions.

The NZ Disability Strategy (NZDS) was developed to help implement the CRPD in Aotearoa. It was established by the New Zealand Public Health and Disability Act 2000 to ensure all government consider disabled people in their decision-making.

Other laws that may apply and, in some cases, place limitations on the rights of disabled people, include:

  • Mental Health (Compulsory Assessment and Treatment) Act 1992.
  • Protection of Personal and Property Rights Act 1988.
  • Intellectual Disability (Compulsory Care and Rehabilitation) Act 2003.
  • Criminal Procedure (Mentally Impaired Persons) Act 2003 11.
  • Privacy Act 1993.
  • Injury Prevention, Rehabilitation and Compensation Act 2001.
  • Building Act 2004.

Disability Benefits

Whether you are temporarily or permanently disabled, disabled people in New Zealand have access to several Government-funded disability benefits and assistance programs.

These allowances provide financial for disabled employees in several ways including:

  • Covering medical expenses.
  • Financial aid for time off work due to personal illness, injury or other impairment.
  • Allowance for caregivers who need to take time off work to care for a relative or significant other.
  • Veteran’s Pension for war veterans.
  • Financial aid for organ donors.

Recruiting Disabled Employees

It is vital that employers avoid discrimination against disabled employees in the workplace and during the recruitment process. It starts right with the job description as the description and candidate specifications may needlessly exclude or discourage a highly qualified disabled candidate. There are some other key factors to remember while writing a job description:

  • Group criteria into ‘essential’ and ‘desirable’ aspects.
  • Rank criteria in order of importance.
  • Don’t include blanket requirements or exclusions in relation to health and safety.
  • Specify qualifications only where there is a genuine occupational requirement.

All job advertisements should be inclusive as possible to ensure that disabled candidates are not excluded.

During an interview, be careful when it comes to asking questions about a candidate’s health. If the candidate has stated they have an illness or disability in the interview and they’re unsuccessful, they may claim they were discriminated against based on their condition. Identify the ways the organisation can make the workplace an inclusive, diverse, and fair workplace.

Business Case for Employing Disabled Workers

Employing disabled people can allow organisations to attract new skills and gain valuable perspectives. There are several benefits a business gets when they consider expanding their workforce and employ disabled workers.

  • Improved client relations - Having a workforce that mirrors real people and reflects New Zealand’s diversity will improve client relations and make your customers feel seen and supported.
  • Inclusivity - By employing disabled people, employers are no longer relying on buzz words but taking constructive action and enhancing inclusivity in the workplace.
  • Social benefits- There are social benefits to employing disabled people such as lower tax burdens, greater social equality, and improves productivity.

Providing Reasonable Accommodation Measures

When an employer is made aware of a disability at work, they need to make reasonable accommodations to support the specific needs of that employee.

Discussions with an employee are the most effective way to establish a working arrangement that maximises their productivity, while improving and maintaining job satisfaction. Both parties may agree to reasonable adjustments to maximise the employee’s ability to perform their role.

Such as:

  • Making modifications or changes that allow the employee to receive equal opportunities in the workplace.
  • Implementing physical changes to the workplace (e.g. Providing easy access to the building).
  • Modifying how the job is done (e.g. Giving part of the task to someone else or providing facilities to make the job easier).
  • Any changes that do not unreasonably disrupt the activities of the employer.

Keep in mind, while these changes should be an effective means to help the employee – they should not come at the expense of disrupting the workplace or causing unreasonable financial distress to the business.

Create Inclusive Workplaces with Peninsula

The wellbeing of any organisation depends on the people who work there. A positive workforce encapsulates people with a diverse range of skills and experience who come from a variety of different backgrounds.

By looking at disability in the workplace as an opportunity for growth, not a ‘problem’ to be dealt with, organisations can expand the diversity of their team and encourage a positive and welcoming image for their business.

For advice on how to manage employees with a disability in the workplace, contact Peninsula.

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