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The new contractor gateway test: What it means for your business | MDLawyers

New Zealand now has a specific test for determining whether a worker is an independent contractor or an employee. This is one of the most practically significant changes in the Employment Relations Amendment Act 2026 for businesses that engage contractors.Why Was This Needed?Before this change, deciding whether someone was an employee or a contractor involved looking at the overall nature of the working relationship, which was flexible but could be unpredictable. High-profile disputes, including...

Procedural mistakes in dismissals; What NZ's new fairness test means | MDLawyers

Under the old rules, a procedural error during a dismissal process could be enough to make the dismissal unjustified, even if the reason for dismissal was completely sound. The 2026 amendments change that. Here is what you need to know.What Was the Old Approach?Previously, the test of justification put significant weight on procedural compliance. An employer could have a solid, well-founded reason to dismiss someone but still fail to meet the test due to failure to meet proper process. This crea...

How employee conduct now affects personal grievance remedies in NZ | MDLawyers

Impact of Employee Conduct on RemediesOne of the most significant changes introduced in the recent amendments to the Employment Relations Act 2000 relates to employee conduct and its impact on remedies following an unjustified dismissal. Previously, the Employment Relations Authority (ERA) had discretion to reduce remedies for unjustified dismissal where an employee’s conduct contributed to the situation, however, reductions were often relatively modest. What’s changed?Under the ne...

High earners and dismissal: what the new $200,000 threshold means | MDLawyers

A significant change now applies to employees earning $200,000 or more per year. From 21 February 2026, these employees can no longer bring a personal grievance for unjustified dismissal in most situations. Here is what both employers and employees need to understand.What Has Changed?Under the new law, employees earning $200k+ are excluded from unjustified dismissal (and related disadvantage) personal grievance claims by default. Employers of these employees are also not required to follow the s...

The 30-day rule is gone: What it means for your workplace | MDLawyers

From 21 February 2026, one of the long-standing requirements around starting new employees whose work is covered by a collective agreement has been removed. Here is what changed and what it means for employers and employees.What Was the 30-Day Rule?Previously, if a new employee started in a role covered by a collective (union) agreement, they had to be employed on the terms of that collective for their first 30 days of employment, even if they were not a union member. Only after that period coul...

Local business faces $40K employment penalty | MDLawyers

A recent Employment Relations Authority determination involving a Putaruru-based business (the Company), serves as a stark reminder of how expensive employment mistakes can be for small businesses. The case of Udumullaga v Hopkins Joinery Limited, determined in May 2025, is a reminder that even where an employer might have a genuine reason for ending an employment relationship, they can face significant financial consequences when they get the process wrong....

New pay transparency law NZ: Employer guide | MDLawyers

The Employment Relations (Employee Remuneration Disclosure) Amendment Bill gained royal assent on 26 August 2025, making an amendment to the Employment Relations Act 2000.This amendment makes it law that employees can now discuss their salaries and wages without fear of employer retaliation.This significant change to New Zealand employment law means that employers are prohibited from taking adverse action against employees who disclose or discuss their remuneration with others.New Personal Griev...