Employees should take an active role in protecting their workplace rights
A new job offer. A promotion. A contractor agreement. A workplace investigation. A restructure.
The employment law changes introduced in 2026 could affect how these situations play out and the rights available to you if things go wrong.
While employers are reviewing contracts and workplace policies, employees should also understand how these changes may affect their position. Understanding your rights early can make a significant difference if workplace issues arise later.
Promises Made at the Beginning Matter
Many employment disputes start long before a formal complaint is raised and can be traced back to conversations, assumptions, and agreements made at the very beginning of the employment relationship.
Job titles, bonus structures, commission arrangements, flexible working promises, restraint clauses, contractor arrangements, and performance expectations are often discussed during recruitment and then forgotten once work begins.
As employment law continues to evolve, the documents you sign and the commitments made during recruitment may become increasingly important if disagreements arise later.
Before accepting a new role, make sure important terms are recorded in writing and accurately reflect what has been discussed.
Before You Sign That Contractor Agreement
More New Zealanders than ever are working as contractors rather than traditional employees.
A new Gateway Test has been introduced to make it easier to determine whether someone is genuinely operating as a contractor. Where all statutory criteria are met, a worker may be classified as a specified contractor rather than an employee.
That distinction matters.
Contractors generally do not receive the same legal protections available to employees. Rights relating to personal grievances, annual leave, sick leave, and other statutory benefits may depend on whether you are classified as an employee or a contractor.
Before signing, make sure you understand whether the arrangement is genuinely a contracting relationship and what rights may be affected as a result.
What is written in the agreement is important, but so too is how the relationship operates in practice. What you sign at the beginning of a working relationship may become highly relevant if questions arise later.
High-Income Employees Need to Pay Attention
One of the most significant changes introduced by the Employment Relations Amendment Act 2026 affects employees earning $200,000 or more per year.
Under new employment agreements, employees earning above this threshold can no longer bring a personal grievance claim for unjustified dismissal unless their employment agreement specifically preserves that right. Existing employees have a transitional period before the change applies to them.
Importantly, this does not remove all employment protections. Employees can still pursue a range of other personal grievances, including claims involving discrimination, sexual harassment, racial harassment, and unjustified disadvantage.
For senior managers, executives, and highly paid professionals, this change makes it particularly important to seek legal advice before signing a new employment agreement or renegotiating an existing one. What is agreed at the start of the relationship could have significant consequences if things later go wrong.
The reality is that many senior employees focus on salary, incentives, and responsibilities when negotiating a role. The new law means equal attention should be paid to the rights and protections available if the employment relationship breaks down.
Personal Grievance Outcomes May Look Different
The law has also changed the way remedies are assessed when an employee's own conduct contributes to a workplace dispute.
The Employment Relations Authority and Employment Court must now reduce or remove certain remedies where an employee has contributed to the circumstances that led to the grievance. In cases involving serious misconduct, compensation and other remedies may not be available at all.
This does not mean employees lose the right to be heard. However, it does highlight the importance of acting reasonably, responding appropriately to workplace concerns, and maintaining records of important events.
When workplace issues arise, keep records of conversations, emails, meeting notes, and key decisions. The facts matter, but so does how those facts are recorded, communicated, and understood.
Protections for Vulnerable and Migrant Workers Remain a Priority
Recent Employment Relations Authority decisions demonstrate that migrant worker exploitation remains an area of significant regulatory focus.
All employees are entitled to minimum workplace rights and protections regardless of their immigration status.
Employers cannot lawfully demand payment in exchange for employment opportunities, avoid minimum employment standards, or exploit vulnerable workers. Where breaches occur, substantial penalties can follow.
These cases serve as an important reminder that workplace rights and protections apply to all employees, regardless of immigration status.
Changes to Leave Entitlements Are Coming
After years of confusion, payroll errors, and disputes about leave calculations, New Zealand is moving towards a new employment leave regime, expected to take effect in 2028.
The proposed reforms are intended to make leave easier to understand, calculate, and track.
Some of the key changes include:
Annual leave and sick leave accruing from your first day of employment.
Leave being recorded in hours rather than weeks or days.
Greater flexibility to take part-days of leave.
Simpler methods for calculating leave payments.
Earlier access to a range of leave entitlements than under the current system.
For employees who work variable hours, shift patterns, or irregular rosters, these reforms may make leave balances easier to understand and provide greater transparency around how leave is earned and paid.
Don't Wait Until There Is a Problem
Many employees only seek legal advice after a relationship has broken down.
In reality, some of the most valuable advice is obtained before signing a contract, during a disciplinary process, after concerns are raised, or when workplace changes are first proposed.
Understanding your position early can help protect your options later.
If something does not seem right, whether it involves pay, leave, workplace treatment, restructuring, performance concerns, or proposed contractual changes, obtaining advice sooner rather than later can make a significant difference.
What Should Employees Be Doing Now?
As employment law continues to evolve, employees should take an active role in protecting their workplace rights. This includes carefully reviewing any new employment agreement before signing, seeking advice if they are earning, or likely to earn, close to the $200,000 remuneration threshold, and ensuring they understand whether they are correctly classified as an employee or a contractor.
Employees should also keep records of hours worked, leave taken, and significant workplace communications, and confirm important discussions and agreements in writing wherever possible. Staying informed about upcoming leave law reforms and seeking legal advice early when workplace issues arise can help preserve important rights and avoid problems escalating unnecessarily.
Looking Ahead
Employment relationships work best when both parties understand their rights and obligations.
The recent reforms bring new opportunities, but they also create new risks and areas of uncertainty. Whether you are negotiating a new role, considering a contractor arrangement, facing workplace concerns, or simply wondering how these changes may affect you, understanding your position early is often the best protection.
At BuckettLaw, we regularly assist employees with employment agreements, disciplinary processes, restructures, workplace disputes, personal grievances, and the protection of workplace rights.
Every worker is entitled to fair pay, safe working conditions, freedom from bullying and discrimination, reasonable leave entitlements, and fair treatment. While employment law continues to evolve, the underlying principle remains unchanged: dignity, respect, and equality should underpin every workplace relationship.
If you're unsure how these employment law changes may affect you, contact BuckettLaw for practical, independent advice.
