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.
The new minimum wage
Active from: 1 April 2026
Kicking off the year nice and easy, New Zealand’s minimum wage will improve from $23.50 to $23.95 per hour for adults, while the starting-out and training wage increases from $18.80 to $19.16 per hour (remaining at 80% of the adult rate).
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To remedy the long-standing compliance issues it has created, the Holidays Act 2003 may be repealed in 2026. If that proves to be the case, this will make way for a new Employment Leave Act (tentatively scheduled to be enacted before New Zealand’s general election in November).
The objective is to simplify entitlements and foster consistency for employees with variable hours.
Under the proposed framework, annual and sick leave would accrue from an employee’s first day and could be paid at an hourly rate (base wage) rather than the current four-week entitlement after 12 months of continuous service.
Additionally, casual workers will no longer receive 8% ‘pay as you go’ gross earnings. Instead, they’ll be paid 12.5% leave compensation on all earnings. One can also anticipate clarification surrounding public holidays, bereavement leave, and family violence leave, with certain entitlements available from day one.
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.
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