What’s on the Horizon – Time for Change

Kate Ashcroft • 22 December 2025

2025 has been a year of sweeping reform, and as we close out the year, we know for sure that there will be more changes to come across workplace law in 2026.


In 2025, minimum wage climbed, parental leave expanded, privacy obligations tightened, and pay transparency became law. Immigration rules shifted, KiwiSaver changes were locked in, and major proposals are queued for 2026.


Our view is the changes so far are creating a lot of “noise” for employers, and compliance with these will be a focus for 2026 with a number of pretty major and all new concepts becoming law. However, not much has happened that really “moves the needle” for employers in terms of making managing workplace obligations easier, which is perhaps surprising given the current government make up.


At high level, we recommend employers stay informed on the laws which will be enacted and take effect in 2026, because the signalled shifts really are in the need to know category, and employers will need advice about what this means for their workplace and to ensure they have a strategy to address the changes.


Employment


Top highlights for Employment are:

  • The Contractor Gateway test – this will mean all contractor arrangements need review, to take advantage of the certainty that will be available and to avoid the currently very common contractor status challenges (like, the Uber case recently decided by the Supreme Court)
  • Holidays Act Reform - a new Employment Leave Act is on the horizon, with draft legislation expected early 2026, likely allowing two-year implementation window. This will affect all employers
  • PG exclusions for high earners – all employers with employees in the high earning category will need to decide strategically how they’ll handle this, including considering what it will mean for disputes with those who are excluded
  • Compulsory KiwiSaver contribution increases – this is coming in April 2026, and impacts the 75% of employers who do not take a “total remuneration” approach
  • Ending employment by agreement – Select Committee changes have added strict regulations to the concepts introduced in this private members bill, and if it passes, employers will need to carefully work through how they can take lawfully advantage of having direct discussions about ending employment with employees


A number of changes to the Employment Relations Amendment Bill have now been made following Select Committee review, with progression to enactment expected in early 2026.


Privacy

From May 2026, new Privacy Principle IPP3A will require businesses to notify individuals when collecting personal information indirectly. This change strengthens transparency and accountability in data handling and applies to all agencies, including private employers, and we’re seeing more and more privacy complaints and claims, especially where employees are progressing PGs or challenging employment process. Employers need to understand privacy duties, have appropriate policies in place, and ensure staff are trained on what this all means for them.


Immigration

The Immigration Amendment Act introduced broader levy settings and compliance powers.

  • Ministers now have authority to cancel residence visas for security threats and grant visas in exceptional cases.
  • Deportation liability for residence visa holders convicted of crimes was clarified, and a new offence prohibits charging migrants premiums for employment.


Beyond this, immigration policy is evolving.

  • Skilled Migrant Category changes will shorten work periods and create new pathways for those without bachelor’s degrees (policy due early 2026).
  • The Business Investor Visa offers residence for those investing at least NZD $1 million and meeting tax residency requirements.
  • Active Investor Plus Visa applications reached 491 by December and are expected to grow.
  • Accredited Employer Work Visa rules shifted to market rates, with redesigned Job Check forms, increased compliance checks, and new NOL roles for future ANZSCO transitions.


Health and Safety

Last but not least, Government has signalled broad policy changes to health and safety for 2026, but we are waiting for details on what this may mean and for any draft Bills. Watch this space!


Message for Employers

2026 promises further reform with Government indicating it want to implement these changes pre-Election. 

We therefore recommend:

·       Auditing current policies and agreements.

·       Update payroll and compliance systems.

·       Auditing the immigration policies and clauses.

·       Seeking legal advice to inform strategy to deal with the changes

·       Providing training for staff on what these mean for them and their roles


Looking to stay ahead of workplace law changes? Our upcoming webinar series will cover a range of workplace law topics. Don’t miss the chance to join these sessions and get practical insights from our experts. Learn more and see the full schedule in our article here.


For advice or for more information regarding the above, please contact our team.

 

Disclaimer: This article provides commentary on employment law topics and should not be used as a substitute for legal or professional advice for specific situations. Please seek legal advice for any questions specific to your workplace.

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