Seven Law Updates.
Employment Law Updates
What You Need to Know
The past few months have brought a number of important changes to employment law in New Zealand. Below is a summary of what’s in effect now, and what’s on the horizon, so you can stay compliant and plan ahead.
Employment Relations Act Changes Now in Force
As of 21 February 2026, several amendments to the Employment Relations Act have come into effect following the passage of the Employment Relations Amendment Act 2025.
Key changes include:
- Removal of the 30-day rule: New employees are no longer required to begin employment on collective agreement terms for their first 30 days. Employees can now choose from the outset whether to join a collective agreement or enter an individual employment agreement.
- Contractor vs employee clarification: A new gateway test has been introduced to help determine whether a worker is a contractor. If the gateway criteria are met, the worker will be recognised as a specified contractor. If not, the existing common law test will continue to apply.
- Remuneration threshold for unjustified dismissal claims: Employees earning $200,000 or more per year under new employment agreements will generally no longer be able to raise a personal grievance for unjustified dismissal, unless the parties agree otherwise in writing. The threshold will be adjusted annually from July 2027.
- Reduced remedies for employee contribution: Where an employee’s conduct has contributed to a personal grievance, the Employment Relations Authority and the Employment Court must now reduce or remove certain remedies.
Access to Employment Agreements
Employers must now keep accessible copies of all employees’ employment agreements. If requested, you must provide a copy within 7 working days.
What this means for you:
Ensure agreements are stored securely but can be quickly accessed when needed.
Effective: 30 March 2025
Minimum Wage Increases
Adult minimum wage: $23.50 per hour (up from $23.15)
Starting-out / training wage: $18.80 per hour (up from $18.52)
Action point:
Review and update payroll systems to reflect the new rates.
Effective: 1 April 2025
Intentional Underpayment Now a Criminal Offence
Deliberately withholding wages—including final pay delays or unauthorised deductions—can now lead to criminal prosecution under the Crimes Act.
Key takeaway:
Employers must ensure wages are paid in full and on time.
Effective: 13 March 2025
Parental Leave Clarifications
Preterm baby payments are in addition to standard leave entitlements. Primary carers remain eligible for payments, even if they stop working soon after becoming the caregiver.
Benefit:
Provides stronger protections for families with preterm babies.
Effective: Mid-2025
Pay Equity Claims Disrupted
The Pay Equity Amendment Act has cancelled 33 active claims, particularly affecting female-dominated sectors such as health, education, and social services.
Impact:
Existing equity strategies may need to be reconsidered.
Effective: 7 May 2025
What You Should Do Now
- Check your employment agreement templates
- Review your onboarding process
- Identify high-income roles
- Review contractor arrangements
- Check workplace policies and processes
Need support?
At Seven Law, we help businesses understand what these changes mean in practice and ensure their documentation and processes remain compliant and fit for purpose. If you would like assistance reviewing your employment agreements or policies in light of these changes, get in touch.
