New employment settings took effect on 21 February 2026 under the Employment Relations Amendment Act 2026. A new contractor 'gateway test' gives upfront certainty on whether a worker is a contractor or an employee, new hires can start on an individual employment agreement from day one (no 30-day collective default), and employees earning NZ$200,000+ can no longer raise personal grievances for unjustified dismissal (existing staff get 12 months before it applies).
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NZ employment law changes live: contractor gateway test, $200k grievance cap
Why this matters for founders
Founders should re-check their contractor agreements against the new gateway test and update hiring and employment templates now; the NZ$200,000 threshold also lets you set simpler terms with senior hires.
Source: business.govt.nz
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