The Employment Relations Amendment Bill, which was introduced to clarify employment rights, creates more certainty for contracting parties and re-balances the personal grievance system. It passed its third reading on 17 February 2026. It’s due to receive Royal Assent and enter into law shortly.
The new Act will bring in major changes to the New Zealand employment law landscape. It will significantly impact contractors, employees and employers. It’s important for everyone to understand how the changes will affect you.
The major changes are:
– Employees with a salary of $200,000 or more cannot bring a claim for unjustified dismissal against their employer.
– The 30-day rule (where new employers must be employed under terms consistent with a collective employment agreement) is removed.
– A person will be an independent contractor if their contract specifies that they’re a contractor (or not an employee), they’re free to work for another business, they’re not required to work specified times or days, the contract doesn’t terminate if they do not accept additional work, and they had a reasonable opportunity to seek independent advice before signing the agreement.
– An employee who has contributed to a personal grievance can’t be reinstated to their job and can’t receive compensation for hurt, humiliation or loss of a benefit.
– An employee that has been dismissed for serious misconduct will no longer receive any of the usual remedies associated with unjustified dismissal.
These changes are dramatic. Employees need to act promptly and review their employment and independent contractor agreements to make sure they align with these anticipated changes. Act now.
If you would like assistance in reviewing your agreements, or advice on these changes, get in contact with Corcoran French. Our Employment Team is here to help.