(As at 26 February 2026)
1. Employment Relations Amendment Act 2026 (In Force)
1.1 Personal Grievance Changes
High-Income Threshold
- Employees earning $200,000+ total remuneration cannot bring a personal grievance for unjustified dismissal or disadvantage unless both parties agree otherwise.
- Existing employees have a 12-month window to opt in to retain protections.
Remedies Reduced Where Employee Contributed
- Compensation may be reduced or eliminated entirely where employee conduct contributed.
- Reinstatement is no longer available where employee behaviour contributed.
Justification Test Adjusted
- Procedural defects alone will not automatically make a dismissal unjustified unless they result in substantive unfairness.
Impact for Associations
Stronger footing in dismissal situations involving misconduct. Reduced exposure at the top remuneration level. Process still matters.
1.2 Contractor vs Employee – Statutory “Gateway Test”
To qualify as a specified contractor, all criteria must be met:
- Written agreement specifying contractor status.
- Freedom to work for others.
- No minimum required availability period.
- Ability to subcontract.
- No termination for refusing additional tasks.
Impact for Associations
More certainty — but only if documentation and practice align precisely.
1.3 Removal of the 30-Day Rule
- New employees no longer need to start on collective agreement terms for the first 30 days.
Impact for Associations
Simplifies onboarding. Templates must be updated.
1.4 Trial Period Protections Expanded
- Employees dismissed under a valid trial period cannot raise a grievance for unjustified dismissal or disadvantage relating to that dismissal.
Impact for Associations
Trial periods are now a stronger risk-management tool — provided agreements are correctly drafted.
2. Crimes (Theft by Employer) Amendment Act 2025
- Withholding wages can constitute theft under the Crimes Act 1961.
- Elevates non-payment from a contractual issue to potential criminal liability.
Impact for Associations
Payroll accuracy is now a governance risk. Controls must be robust.
3. Pay Transparency and Pay Equity Changes
3.1 Pay Transparency (August 2025)
- Employees cannot be disciplined for disclosing their pay details.
3.2 Equal Pay Amendment Act 2025
- Revised framework and thresholds for pay equity claims.
Impact for Associations
Remuneration systems must be defensible and transparent. Confidentiality clauses restricting pay discussion are unenforceable.
4. Other Relevant Updates
Minimum Wage & Training Rates
- Updated in 2025. Ensure payroll compliance.
Leave Reform (Proposed)
- Employment Leave Act intended to replace the Holidays Act (not yet in force).
Fair Pay Agreements
- Repealed. No current compliance obligation.
Accredited Employer Work Visa (AEWV)
- Adjustments affect migrant employee conditions.
What This Means for Associations – Practical Checklist
Immediate Actions for Boards and Executives
- Review employment agreements (especially senior roles near $200k).
- Audit contractor arrangements against gateway criteria.
- Update dismissal and performance policies.
- Strengthen payroll oversight and sign-off controls.
- Refresh onboarding documentation.
- Review remuneration transparency settings.
References
Employment Relations Act changes take effect today | Employment New Zealand
Employment Relations Amendment Act
Major reform to employment law: the Employment Relations Amendment Act 2026 - Lane Neave
Employment Law changes with the Employment Relations Amendment Act 2026 - Christchurch Lawyers and Legal Advice » Harmans Lawyers
