New Zealand employers are well-used to the constant evolution of employment and workplace health and safety (WHS) law: in that regard, it could be said that 2025 will bring “more of the same”.
However, in our view:
- the number of changes under active consideration; and
- the potential practical impact of those changes for employers,
are more far-reaching than we have seen in recent years. The changes could have a significant impact across a range of employment relations issues, including the administration of holidays and leave, employer responses to partial strikes, potential clarification regarding contractor status, and improved flexibility in relation to certain dismissals.
While the details of the proposed reforms are not yet finalised, we summarise below what we know about the key employment and WHS reforms that are under consideration, and what these changes might mean for employers if they become law.
“Fixing” the Holidays Act1
Most employers have experienced the challenge of complying with the Holidays Act 2003, and several have been subject to specific enforcement action by the Labour Inspectorate (particularly over the last ten years). The current Act is particularly difficult to apply to employees with variable hours and/or variable remuneration arrangements. The complexity of the Act means that there is constant risk of unintentional non-compliance, which causes concern for employers and employees alike.
In 2024, the Government undertook targeted consultation...
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