Want to ensure your business is aware of the latest employment law updates? Our expert team provides regular insights into key changes from the New Zealand government, including the Employment Relations Act 2000 and the Heath & Safety at Work Act 2015.
Much like the coming raft of changes to workplace legislation in Australia, 2026 promises to be a significant year for New Zealand businesses.
With rollouts that’ll impact everything from payroll to broader workforce planning, consider the following breakdown a simplified compliance digest.
Changes to the KiwiSaver Act 2006
Active from: 1 April 2026 | 1 April 2028
Mirroring the cyclical rise of minimum wage, from April 1st, the minimum KiwiSaver contribution rate for both employers and employees has increased to 3.5% of gross pay – with a further increase to 4% scheduled for 1 April 2028.
Starting this year, employers must also make compulsory KiwiSaver contributions for 16 and 17 year old employees who opt in, and employees who would otherwise move up to the 3.5% minimum can apply to Inland Revenue for a temporary rate reduction so they can continue contributing at 3% for a limited period.
Employment Relations Amendment Bill finally takes flight?
Active from: Expected 2026
Introduced to the New Zealand Parliament last June – and reported back from Select Committee on December 8th, 2025 – these proposed changes to the Employment Relations Act 2000 may be the year’s most notable. That is, if it becomes ratified in time.
Key takeaways include:
- A four-part “gateway test” to determine whether a worker is classified as an employee or independent contractor.
- Introduction of a NZ$200,000 salary threshold that forfeits an employee’s right to pursue unjustified dismissal claims (unless opted out by contract).
- Stricter consideration of employee behaviour and accountability with personal grievance cases.
- Removing the 30-day rule requiring new employees to accept collective agreement terms where one applies (allowing for immediate negotiation of individual terms)
Reception to this “controversial” bill has been sharply divided – the system re-tilting in favour of employers has been deemed an attack on worker rights by trade unions. Despite the backlash, at the time of this writing, the Bill is progressing through Parliament and is expected to be considered for ratification in 2026.
Out with the Holidays Act 2003
Active from: Expected 2026
To remedy the long-standing compliance issues it has created, the Holidays Act 2003 is being repealed to make way for a new Employment Leave Bill (tentatively scheduled to be enacted before New Zealand’s general election in November).
Introduced into Parliament on 9 March 2026, the objective is to simplify entitlements and foster consistency for employees with variable hours.
Under the proposed framework, annual and sick leave would start accruing from an employee’s first day of work, with sick leave capped at a total hours entitlement, and leave would be paid using a single hourly rate rather than the current four-week entitlement after 12 months of continuous service.
Under the Bill, the existing 8% “pay as you go” arrangement would be replaced by a 12.5% Leave Compensation Payment applied to additional and casual hours worked, instead of accruing leave on those hours in the usual way. One can also anticipate clarification surrounding public holidays, bereavement leave, and family violence leave, with certain entitlements available from day one.
At the time of this publishing, the Employment Leave Bill 2026 has passed its first reading and been referred to the Select Committee. A 24-month implementation period has been earmarked once the legislation becomes official, providing payroll providers and employers alike with adequate breathing space to make the transition.
Workplace Health & Safety reform
Active from: Expected 2026
Health and safety laws are another core aspect being overhauled to simplify compliance.
Under the revised Health & Safety at Work Act 2015, small businesses would be excluded from most duties – although they will still be required to protect against critical risks and threats that could cause death or serious illness/injury.
A good deal of the reform activity will be sector-specific: WorkSafe NZ, for example, is helping establish an Approved Code of Practice (ACoP) with the construction and agriculture industries to ensure appropriate safety measures are in place.
The new provisions are currently under development with staged consultation planned throughout 2026.
Also read:
- How To Avoid Unfair Dismissal Claims in Australia (Employer’s Guide)
- AU Employment Law: What You Need To Know
- UK Employment Law: What You Need To Know
- NDIS Worker Screening Check Guide For Employers
- Where NDIS Providers Are Most Exposed Right Now
- Paid Parental Leave In Australia Gets An Update From July 1
- Australia's Minimum Wage Guide
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