New Zealand is undergoing its biggest employment law shake‑up in years, with sweeping changes to dismissal rights for high earners and a complete Holidays Act rewrite set to transform how leave, pay and risk are managed across every workplace
Employers across Aotearoa are facing the most significant shake‑up to workplace law in years, as sweeping reforms to the Employment Relations Act take effect and a complete rewrite of the Holidays Act moves through Parliament.
Dentons employment partner Charlotte Evans says the changes mark “an interesting time” for both employers and employees as the balance of rights and obligations is reset across the labour market.
The centrepiece of the recent reforms is the Employment Relations Amendment Act 2026, which came into force on 21 February, the day after receiving Royal assent.
The Act delivers four major shifts. First, it finally introduces a statutory definition of “specified contractors”. Those who fall within that category cannot challenge the “true nature” of their working relationship, closing off a route often used to argue that contractors were in fact employees.
Second – and most controversially – the reforms remove the right of high‑income earners to bring a personal grievance or legal proceedings in relation to termination, provided certain criteria are met. The threshold has been set at total remuneration of $200,000 or more, and crucially this...
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