Workplace Law 101: What Employers need to know in 2026
Our team recently hosted a webinar covering the fundamentals of employment law, along with the key legislative changes employers are navigating this year. Christie McGregor led the session, walking through the basics and what the reforms mean in practice.
The message was clear: employment, privacy, health and safety, and immigration law are all changing. A "wait and see" approach is not a strategy. Employers who get ahead of these changes will be in a better position.
The webinar covered the recruitment process, choosing the right relationship (including contracting), getting employment agreements right, and how to handle personal grievances and restructures. A recording is available on request.
Employment Relations Amendment Act 2026
Contractor Gateway Test
The new Contractor Gateway Test gives businesses greater certainty when engaging contractors. Five criteria must be met for the test to be met. If your agreements and working practices align with the test, you are in a much more defensible position.
If you use contractors, now is the time to review those arrangements. The test is an opportunity to have more watertight arrangements, but only if your contracts and practices actually reflect it.
High Income Threshold
Employees earning over $200,000 in total remuneration (including salary, allowances, overtime, and bonuses) are now excluded from raising personal grievance claims. The change came into effect on 21 February 2026.
For existing employees in this bracket, a 12-month transitional period applies, unless otherwise agreed. For new employees it applies from day 1. Employers will need to think carefully about their position on no fault termination, contractual protections, dispute resolution, and termination exposure for this group, while still being competitive in attracting senior talent. Employment agreements for high earners will need careful consideration.
Serious Misconduct Dismissals
Changes to remedies for serious misconduct dismissals and around contributory conduct will influence how employers approach disciplinary processes and personal grievance defence. Clear, documented definitions of serious misconduct matter more than ever. Review yours now.
Other Changes
• The 30-day rule for collective agreement coverage has been removed.
• Employees on 90-day trial periods can no longer bring unjustified disadvantage claims.
Employment Leave Bill
The recently introduced Employment Leave Bill proposes significant change from the Holidays Act. For example, it proposes moving from a week-based entitlement system to an accrual-based model. Here is what is proposed.
Annual and Sick Leave
Both annual leave and sick leave would accrue from an employee's first day, based on standard hours worked. Part-time employees would accrue less sick leave overall as a result.
Bereavement and Family Violence Leave
These entitlements remain day-based and continue to be available from the first day of employment.
Casual Employees
The current entitlement to sick leave after six months would be removed. In its place, casual employees would receive a leave compensation payment of 12.5% of their ordinary hourly pay (for annual and sick leave).
Key Takeaways
Multiple reforms are already in force and others are progressing. Employers who take a proactive approach in 2026 will be best placed to manage risk, control costs, and make more confident people decisions.
Now is the time to review your agreements, policies, and practices, before these changes become disputes.
Fixed Price Offers
To help you meet your obligations, we are offering the following fixed price solutions:
Compliant Contract for Services Template: $1,500 + GST
New Best Practice Handbook: $3,500 + GST
Includes all recent legislative changes, best practice policies, and forms. The Handbook covers:
• Standards of dress
• Benefits
• Privacy (including data breach guidance)
• Filming and photography at work
• Leave
• Expenses
• Performance review process
• Electronic communications
• Mobile phone use
• Criminal record checks for airfreight roles
• Travel
• Driving and vehicle use
• Bullying, harassment and discrimination
• Drug and alcohol testing
• Disciplinary process
To take advantage of any of these offers, get in touch at info@ammlaw.co.nz
Disclaimer: We remind you that while this article provides commentary on employment law, health and safety and immigration topics, it should not be used as a substitute for legal or professional advice for specific situations. Please seek legal advice from your lawyer for any questions specific to your workplace.
