- High-Income Threshold: Employees earning NZD 200,000 or more in total remuneration will lose unjustified dismissal protections.
- Remedies Reduced or Eliminated for Certain Conduct: Available remedies in personal grievance claims are limited where an employee’s conduct contributed to the situation, and authorities can reduce or eliminate compensation entirely where the employee engaged in serious misconduct, even if the employer’s process was flawed.
- Procedural Fairness Standard Loosened: A dismissal will not be found unjustified solely due to procedural defects unless the error materially disadvantaged the employee, effectively shifting the analysis toward a “harmful error” standard.
- Worker Classification Gateway Test: A new statutory gateway test determines whether a worker must be treated as a contractor, making it more difficult for gig economy workers to challenge their employment status.
Reform #1: High-Income Threshold Removes Unjustified Dismissal Protections
Effective February 21, 2026, employees earning NZD 200,000 or more in total annual remuneration are barred from bringing personal grievance claims for unjustified dismissal. The restriction applies immediately to new employees hired after February 21, 2026, who meet the threshold. For existing employees, the law provides a twelve-month transitional period. Employers and employees may agree to opt out of the restriction.
To determine whether this restriction applies, employers must correctly calculate...
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