Spotlight on Employment Law | November 2025
Recent key developments
The major changes and decisions shaping employment law right now:
- The Supreme Court has upheld the Court of Appeal's decision confirming UBER drivers are employees.
- Workplace Relations and Safety Minister Brooke Van Velden announced sweeping changes to the Holidays Act 2003, which is to be replaced with a new Employment Leave Act.
- The Education and Workforce Committee recommends by majority that the Employment Relations (Termination of Employment by Agreement Bill) should pass.
- Laws preventing adverse conduct for disclosing remuneration come into force.
- Air New Zealand was found to have unjustifiably discriminated an employee based on his age.
Key updates for employers
Employers are facing a period of rapid legislative change, with new entitlements, negotiation rules, and compliance obligations emerging. The updates below will shape how you manage employment relationships, structure agreements, and respond to workplace issues.
Holidays Act Overhaul
Cabinet has confirmed the full repeal of the Holidays Act 2003. It will be replaced by the new Employment Leave Act, aimed at simplifying entitlements and resolving long-standing calculation issues. Key changes include:
- Annual and sick leave for part-time staff earned proportionally to hours worked
- Sick leave expressed in hours, not days
- New approach to parental leave interaction
Beehive releases | MBIE overview | Media coverage
Termination of Employment by Agreement Bill
The Education and Workforce Committee has recommended the Bill should pass, introducing a new framework for protected pre-termination negotiations. If enacted, employers will be able to propose exit terms whether or not an employment relationship problem exists - provided strict consultation and fairness steps are followed.
Read the bill | Media coverage
Pay secrecy protections now in force
Employees can now freely discuss or disclose their remuneration. Any adverse conduct by an employer in response may amount to unjustified disadvantage. The change aims to strengthen pay transparency and help address pay inequities.
$180k personal grievance cap
Proposed reforms limit unjustified dismissal claims for employees earning over $180,000, reducing high-value, low-merit litigation.
Read our full Anthony Harper update
Trends we’re watching
- Gloriavale’s labour model under scrutiny - described in court as resembling a “sweatshop”. Read more
- Labour pushes mandatory gender & ethnic pay gap reporting for large employers. Read more
- Health NZ begins issuing backdated holiday pay - a reminder of complexities the new Employment Leave Act aims to fix. Read more
- Amazon cuts 14,000 corporate roles globally, reflecting broader workforce restructuring pressures. Read more
Lessons from recent decisions
Uber drivers confirmed as employees
The Supreme Court has upheld the Court of Appeal’s decision in Rasier Operations BV v E tū, ruling that Uber drivers are employees, not contractors. This landmark judgment is expected to influence both litigation and upcoming reforms to contractor classification.
Air New Zealand liable for age discrimination
In McGearty v Air New Zealand Ltd, the Employment Court held that Air NZ unlawfully discriminated against a pilot who, after turning 65, was placed on leave without pay. The Court found that Air NZ failed to meaningfully explore roster adjustments that could have accommodated his age-related restrictions -an employer obligation unless such accommodations are unreasonably disruptive.
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