Key update for employers - What matters now

2026 has already brought significant developments for employers. The Employment Relations Amendment Act has now been passed, and both the Health and Safety Amendment Bill and the Modern Slavery Bill have been introduced to Parliament. The Health and Safety reforms are currently before Select Committee.

While unemployment remains high at 5.4% - the highest in a decade - a lift in job advertisements suggests the market may improve as the year progresses.

With an election ahead, further change in the employment law space is likely this year.

Here’s what employers need to know.

Employment Relations Amendment Act now in force

The Employment Relations Act 2000 has now been amended - the changes bring immediate and significant impact. Further details available in our article.    

Key changes:

• A new $200,000 income threshold - employees above this cannot raise personal grievance claims relating to dismissal.
• Reduced remedies where serious misconduct or employee contribution is established.
• A new gateway test for distinguishing employees from certain contractors.
• Removal of the 30-day rule for collective agreements.

Trends we’re watching - On the horizon

Minimum wage increase from 1 April 2026

From 1 April 2026, the adult minimum wage will increase to $23.95 per hour, and the starting-out and training wage to $19.16 per hour.

Employers should update payroll settings to ensure compliance.

KiwiSaver changes from 1 April 2026

The default KiwiSaver contribution rate for employees and employers will rise to 3.5% (from 3%) from 1 April 2026. This will affect all pay runs from 1 April 2026, even if some (or all) of the pay relates to the period before 1 April.

Employers should check payroll settings to reflect this change.

Health and Safety at Work Amendment Bill

The Health and Safety at Work Amendment Bill would update the 2015 Act to clarify businesses’ duties and reduce unnecessary compliance costs, while still aiming to prevent workplace harm.

It has passed its first reading and is now open for public submissions.

Modern Slavery Bill

The Modern Slavery Bill has been introduced to Parliament, requiring organisations with $100m+ annual revenue to report on how they manage modern slavery risks in their operations and supply chains, with penalties for non-compliance.

Further reform is likely as we head toward the election.

Lessons from recent decisions

Family carers held to be employees

The Supreme Court confirmed that employment status turns on the real nature of the relationship - even in non-traditional or home-based arrangements.

Employer takeaway: Labels will not determine status. Substance will.

Open justice prevails - even if proceedings are withdrawn

The Employment Court refused a permanent non-publication order after enforcement proceedings were withdrawn, reinforcing  the presumption of open justice.

Employer takeaway: Withdrawal of a claim does not guarantee privacy.

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