{"id":4062,"date":"2026-04-14T01:01:50","date_gmt":"2026-04-14T01:01:50","guid":{"rendered":"https:\/\/insight.thomsonreuters.co.nz\/legal\/?p=4062"},"modified":"2026-04-14T01:01:52","modified_gmt":"2026-04-14T01:01:52","slug":"employment-law-the-first-major-changes-of-2026","status":"publish","type":"post","link":"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/employment-law-the-first-major-changes-of-2026","title":{"rendered":"The Expert&#8217;s Edge Special: Employment Law &#8211; the first major changes of 2026"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>2026 promises to be&nbsp;a year of&nbsp;multiple&nbsp;changes to employment&nbsp;legislation.&nbsp;The first&nbsp;wave of change&nbsp;broke in&nbsp;February.&nbsp;<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Overview<\/strong>&nbsp;<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;Employment Relations Amendment&nbsp;Act&nbsp;2026 came into force on&nbsp;21 February 2026&nbsp;(the day after Royal assent).&nbsp;The preceding Bill&nbsp;began&nbsp;with&nbsp;this&nbsp;general policy statement:&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cThe purpose of the Employment Relations Amendment Bill&nbsp;\u2026&nbsp;is to implement the Government\u2019s employment relations commitments and support the Government\u2019s&nbsp;\u2018Going for Growth\u2019&nbsp;agenda, by helping to make New Zealand\u2019s business settings more competitive. Together, these changes will enhance&nbsp;labour&nbsp;market flexibility, reduce compliance costs, and re-tilt the personal grievance system to better balance employer and employee interests and discourage poor&nbsp;behaviour.\u201d&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Changes were made to the Bill&nbsp;during the&nbsp;(select and whole House)&nbsp;committee stages of the Bill. The resulting amendments to the&nbsp;Employment Relations&nbsp;Act 2000&nbsp;(ERA 2000)&nbsp;are&nbsp;wide-ranging and far-reaching.&nbsp;They&nbsp;apply&nbsp;from the commencement date,&nbsp;subject to&nbsp;a&nbsp;12-month transitional period&nbsp;that may apply in one instance, and subject&nbsp;to the usual rules about what effect the amendment of legislation has. (For&nbsp;initial&nbsp;case law on&nbsp;when the&nbsp;new legislation applies, see <em>Board&nbsp;of Trustees v LGY<\/em>&nbsp;[2026]&nbsp;NZEmpC&nbsp;46&nbsp;at&nbsp;[5]\u2013[8].)&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Employment Law<\/em>&nbsp;(online ed, Thomson Reuters)&nbsp;on Westlaw New&nbsp;Zealand&nbsp;has been&nbsp;updated to&nbsp;include the&nbsp;consolidated&nbsp;ERA 2000 and introductory commentary&nbsp;on the changes: see the <a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/Ib9ff877035dc11ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Employment Law \u2014 What\u2019s New<\/a>&nbsp;page&nbsp;for details.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Worker&nbsp;status: specified contractors&nbsp;vs employees<\/strong>&nbsp;<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This change defines a&nbsp;\u201cspecified contractor\u201d&nbsp;and&nbsp;excludes&nbsp;a qualifying worker from being an \u201cemployee\u201d (even if&nbsp;employment&nbsp;proceedings&nbsp;determine&nbsp;that&nbsp;the&nbsp;worker was an \u201cemployee\u201d before 21 February 2026).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the so-called \u201cgateway\u201d test for access to the&nbsp;rights (and obligations) of employees under the ERA 2000.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Relevant sections of&nbsp;the&nbsp;ERA 2000&nbsp;(links are to&nbsp;<em>Employment Law<\/em>&nbsp;in Westlaw New Zealand):&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae305ac35d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section&nbsp;6<\/a>&nbsp;(Meaning of employee)&nbsp;amended: new&nbsp;subsections (1)(d), (7) and (8)&nbsp;inserted.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade83a10e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">schedule 1AA clause&nbsp;27<\/a>&nbsp;(Person is&nbsp;specified&nbsp;contractor on and from commencement date unless proceedings brought before commencement)&nbsp;inserted.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Prospective and new&nbsp;(non-union)&nbsp;employees: bargaining and initial terms and conditions<\/strong>&nbsp;<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This change&nbsp;removes the so-called&nbsp;\u201c30-day rule\u201d,&nbsp;under which&nbsp;the terms and conditions of&nbsp;an applicable collective agreement&nbsp;in the workplace&nbsp;(plus any mutually agreed&nbsp;additional&nbsp;terms and conditions)&nbsp;applied to a&nbsp;new employee&nbsp;who was not&nbsp;a union member&nbsp;for the first&nbsp;30 days&nbsp;of employment.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Various&nbsp;information&nbsp;and compliance&nbsp;requirements&nbsp;associated&nbsp;with the 30-day rule are also removed&nbsp;or replaced, including in relation to bargaining with&nbsp;a prospective employee.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Relevant sections of the ERA 2000:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae307ca35d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 30A<\/a>&nbsp;(Union may provide employer with information about role and functions of union to pass on to prospective employees) and the preceding&nbsp;cross-heading&nbsp;repealed.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae3061d35d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 62<\/a>&nbsp;(Terms and conditions for first&nbsp;30 days&nbsp;of employment of new employee who is not member of union) amended: subsections (3)\u2013(5) replaced and subsection (6)&nbsp;deleted.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae3058235d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 62A<\/a>&nbsp;(Employer must share new employee information with union unless employee objects) repealed.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae3061f35d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 63<\/a>&nbsp;(Terms and conditions of employment of employee who is not member of union after expiry of 30-day period) repealed.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae307f335d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 63A<\/a>&nbsp;(Bargaining for individual employment agreement or individual terms and conditions in employment agreement)&nbsp;amended: subs (1)(c) and (d) repealed.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae307f535d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 63B<\/a>&nbsp;(Additional employer obligations when bargaining for terms and conditions of employment under section 62)&nbsp;repealed.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Personal grievances: 90-day trial periods<\/strong>&nbsp;<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This change clarifies\/extends the existing prohibition on&nbsp;bringing&nbsp;a personal grievance or other legal proceedings in respect of&nbsp;a (procedurally correct)&nbsp;dismissal&nbsp;during a 90-day trial period covered by an appropriate \u201ctrial provision\u201d.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Specifically, to the extent that a&nbsp;personal grievance&nbsp;for unjustified&nbsp;<em>disadvantage<\/em>&nbsp;\u201crelates to the dismissal\u201d, that grievance (or part thereof) is now barred in the same way that a&nbsp;personal grievance&nbsp;for unjustified <em>dismissal<\/em>&nbsp;is barred.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Relevant sections of&nbsp;the&nbsp;ERA 2000:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae3037835d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 67B<\/a>&nbsp;(Effect of trial provision under section 67A)&nbsp;amended:&nbsp;subsections&nbsp;(2) and (3) replaced.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Personal grievances:&nbsp;high-income employees<\/strong>&nbsp;<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This change (which&nbsp;does&nbsp;not apply&nbsp;in some cases for&nbsp;up to 12 months, though it may be agreed to apply from 21 February 2026)&nbsp;relates to the&nbsp;dismissal&nbsp;of&nbsp;an&nbsp;employee whose \u201cannual remuneration\u201d (as defined) meets or exceeds&nbsp;the \u201cspecified remuneration threshold\u201d (initially $200,000, and subject to increase each year from 1 July 2027&nbsp;if&nbsp;average ordinary weekly earnings&nbsp;increase):&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Termination of the employee\u2019s employment is not subject to certain requirements of the ERA 2000 relating to&nbsp;(a)&nbsp;good faith and&nbsp;(b)&nbsp;reasons for&nbsp;dismissal.&nbsp;<\/li>\n\n\n\n<li>The employee&nbsp;cannot bring a&nbsp;personal grievance&nbsp;(unjustified&nbsp;dismissal&nbsp;or disadvantage) or other legal proceedings&nbsp;in&nbsp;respect of the dismissal&nbsp;(even if&nbsp;a previously agreed&nbsp;dispute resolution procedure&nbsp;enables&nbsp;such a&nbsp;course of action).&nbsp;<\/li>\n\n\n\n<li>However, the parties&nbsp;can agree in writing, as a term of the employment agreement, that these exemptions&nbsp;do not&nbsp;apply.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Relevant sections of&nbsp;the&nbsp;ERA 2000:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section&nbsp;5 (Interpretation)&nbsp;amended: new definitions of&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade82810e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">\u201cannual remuneration\u201d<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade82a10e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">\u201cspecified remuneration threshold\u201d<\/a>&nbsp;inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade81010e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">section 67I<\/a>&nbsp;(Termination of employment of employee whose annual&nbsp;remuneration&nbsp;meets or exceeds specified threshold) inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade81110e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">section 67J<\/a>&nbsp;(Employer and employee may agree that sections 67I and 113A do not apply) inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade80e10e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">section 113A<\/a>&nbsp;(Employee whose annual&nbsp;remuneration&nbsp;meets or exceeds specified threshold may not pursue personal grievance for unjustified dismissal or unjustified disadvantage) inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade80310e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">section 113B<\/a>&nbsp;(Specified&nbsp;remuneration&nbsp;threshold) inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade82c10e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">schedule 1AA&nbsp;clause&nbsp;26<\/a>&nbsp;(Interpretation)&nbsp;inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade80110e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">schedule 1AA&nbsp;clause&nbsp;28<\/a>&nbsp;(Section 67I does not apply to certain employees for&nbsp;period&nbsp;of up to 12 months)&nbsp;inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade80210e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">schedule 1AA&nbsp;clause&nbsp;29<\/a>&nbsp;(Section 113A does not apply to certain employees dismissed within 12 months of commencement)&nbsp;inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade81910e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">schedule 1AA&nbsp;clause&nbsp;30<\/a>&nbsp;(Application of dispute resolution procedures that enable employees to bring personal grievance or legal proceedings)&nbsp;inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade81710e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">schedule 1AA&nbsp;clause&nbsp;31<\/a>&nbsp;(Specified remuneration threshold must not increase before 1 July 2027) inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade81810e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">schedule 1AA&nbsp;clause&nbsp;32<\/a>&nbsp;(Application of section 113B to first increase of specified remuneration threshold)&nbsp;inserted.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><em><strong><em>Commentary from author Phil Bartlett:<\/em><\/strong>&nbsp;<\/em><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe&nbsp;new s\u202f67J may generate some interesting issues relating to good faith and other legal obligations, particularly as regards existing employees on&nbsp;individual employment agreements (IEAs) whose remuneration meets or exceeds $200,000 as&nbsp;at&nbsp;21 February 2026. If such an employee wishes to&nbsp;retain&nbsp;the protection of the personal grievance procedure,&nbsp;they would need to request their employer to agree to a variation of the employment agreement so that it&nbsp;contains&nbsp;a term excluding ss\u202f67I and 113A. That request would trigger good faith obligations (see s\u202f4(4)(ba)&nbsp;of the&nbsp;ERA 2000). Most employers in that situation would no doubt prefer to take advantage of ss\u202f67I and 113A, rather than exposing themselves to the future risk of a grievance. However, looking at the situation in terms of the&nbsp;\u2018active and constructive\u2019 and \u2018responsive and communicative\u2019&nbsp;elements of the s\u202f4(1A)(b) duties, would an employer\u2019s settled preference, supported by the new provisions, of itself be a sufficient answer to the employee\u2019s request? Or would the employer need to go further to explain and try to justify its view that an employee who, up until then, had potential access to the personal grievance procedure should no longer have access to it?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAnother issue that could arise where an employee requests a variation to exclude ss\u202f67I and 113A relates to the requirements for bargaining for IEAs in s\u202f63A and, more particularly, the requirements of s\u202f63A(2). Under s\u202f63A(1)(e),&nbsp;these extend to variations to IEAs. Subsection (2) obliges the employer to provide the employee with a copy of the&nbsp;\u2018intended&nbsp;agreement\u2019, and imposes associated obligations on the employer, such as considering and responding to issues raised. Where a desired variation arises due to an employee\u2019s request (as seems&nbsp;likely under&nbsp;s\u202f67J), rather than at the employer\u2019s initiative, does the employer nonetheless have to&nbsp;comply with&nbsp;the obligations in that subsection? (This issue would not be confined to requests made in reliance on s\u202f67J, but that new provision could well become a testing ground for it.)\u201d&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Personal grievances: test of justification<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This change amends the test to be applied in personal grievance&nbsp;proceedings&nbsp;to&nbsp;determine&nbsp;whether&nbsp;a dismissal or an action by an employer was justifiable:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The list of relevant factors now includes \u201cwhether the employer was obstructed by the employee\u201d in relation to the other factors.&nbsp;<\/li>\n\n\n\n<li>The exclusion from the test of&nbsp;defects in the&nbsp;employer\u2019s&nbsp;process&nbsp;\u2014&nbsp;previously&nbsp;specified as&nbsp;defects that were both (a) \u201cminor\u201d and (b) \u201cdid not result in the employee being treated unfairly\u201d&nbsp;\u2014&nbsp;now consists of (b) only.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Relevant sections of&nbsp;the&nbsp;ERA 2000:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae3071a35d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 103A<\/a>&nbsp;(Test of justification)&nbsp;amended: new subsection&nbsp;(3)(e)&nbsp;inserted&nbsp;and subsection&nbsp;(5) replaced.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Personal grievances: remedies&nbsp;where&nbsp;contributing&nbsp;behaviour&nbsp;by employee<\/strong>&nbsp;<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This change amends the personal grievance remedy regime in&nbsp;various ways&nbsp;with respect to an employee\u2019s contributory conduct:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No remedies are available if there&nbsp;was&nbsp;contributory conduct that amounts to \u201cserious misconduct\u201d (not defined).&nbsp;<\/li>\n\n\n\n<li>The remedies of&nbsp;reinstatement and compensation&nbsp;are not available if there was contributory conduct (whether serious misconduct or not).&nbsp;<\/li>\n\n\n\n<li>In cases involving a \u201ccontrolling third party\u201d, the remedy of&nbsp;reimbursement&nbsp;(of wages or other money lost)&nbsp;must not be ordered against&nbsp;that&nbsp;third party if there&nbsp;was&nbsp;contributory conduct&nbsp;that amounts to serious misconduct; and&nbsp;the remedy of&nbsp;compensation must not be ordered against that&nbsp;third party if there&nbsp;was&nbsp;contributory conduct&nbsp;(whether serious misconduct or not).&nbsp;<\/li>\n\n\n\n<li>In any event,&nbsp;the&nbsp;remedies&nbsp;available&nbsp;may be reduced by up to 100 per cent if there was contributory conduct.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Relevant sections of&nbsp;the&nbsp;ERA 2000:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae3040635d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 123<\/a>&nbsp;(Remedies) amended: new subsection (3) inserted.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae3094035d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 123A<\/a>&nbsp;(Remedies&nbsp;where&nbsp;controlling third party caused or contributed to personal grievance) amended: new subsection (4A) inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade82110e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">section 123B<\/a>&nbsp;(Remedies not available if contributing&nbsp;behaviour&nbsp;by employee amounts to serious misconduct) inserted.&nbsp;<\/li>\n\n\n\n<li>New&nbsp;<a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I21ade82010e011f1b4daa0a760d542f4\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">section 123C<\/a>&nbsp;(Reinstatement and compensation not available if contributing&nbsp;behaviour&nbsp;by employee) inserted.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/anzlaw.thomsonreuters.com\/Document\/I8ae3040535d911ea8c50c7a8655a0ef5\/View\/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;VR=3.0&amp;RS=cblt1.0\" target=\"_blank\" rel=\"noreferrer noopener\">Section 124<\/a>&nbsp;(Available remedies&nbsp;reduced if contributing&nbsp;behaviour&nbsp;by employee) amended: heading amended and new subsection (2) inserted.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong><em>Commentary from author Phil Bartlett:<\/em><\/strong>&nbsp;<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cRemedies for personal grievances based on dismissal, including reinstatement, have been available under New Zealand employment law from 1970, although initially only for union members and in cases of \u2018wrongful\u2019 as opposed to \u2018unjustifiable\u2019 dismissals. Prior to the present government there were eight distinct New Zealand governments since 1970. None had seen it as desirable to&nbsp;eliminate&nbsp;reinstatement as a remedy in situations where a&nbsp;grievant\u2019s&nbsp;actions amounted to serious misconduct, much less where their actions had contributed to the situation that gave rise to the grievance. The current amendment arose from one of the ACT Party\u2019s policy objectives recorded in its coalition agreement with National (November 2023), being that the government \u2018consider\u2019 removing eligibility for personal grievance remedies where the employee is at fault. In my view, the amending Act,&nbsp;evidently driven&nbsp;by a Party which achieved merely 8.64% of the popular vote, is both unnecessary and seriously flawed. I offer three reasons for that view:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>An employee\u2019s contributory fault can often be minor, as shown by cases where only small reductions have been made from monetary remedies, sometimes as little as 10%. To&nbsp;eliminate&nbsp;the possibility of reinstatement in such cases is a&nbsp;\u2018blunt instrument\u2019&nbsp;legislative approach to employee contributory fault that is likely to result in disproportionately harsh outcomes for employees.&nbsp;<\/li>\n\n\n\n<li>In cases of serious misconduct, there is a wide range of employee actions which can potentially fit that description, some of which will be significantly more reprehensible&nbsp;than others. I am reminded of dicta of Judge Shaw in the first Employment Court case under s\u202f103A,&nbsp;<em>Air New Zealand Ltd v Hudson<\/em>&nbsp;[2006] ERNZ 415&nbsp;(EmpC)&nbsp;at [139]. Her Honour referred to two hypothetical situations. One is where an employee is caught red-handed stealing large sums of money. The other is where an employee makes an accounting error which costs the employer money. On any view, the first situation is serious misconduct which will inevitably result in the person\u2019s dismissal. The second is less clear-cut. It could result in dismissal, but whether that outcome is reached will depend on the employer\u2019s evaluation of the circumstances. Different employers faced with the same factual situation could&nbsp;reasonably arrive&nbsp;at different conclusions on the issue of serious misconduct. Reinstatement would never be awarded in the first situation. However, it could be awarded in the second one even if the Court agrees with the employer that the accounting error was serious misconduct&nbsp;\u2014&nbsp;for instance, if the employer\u2019s process&nbsp;was&nbsp;botched and reinstatement is&nbsp;practicable. The blunt-instrument approach in the new legislation allows no room for valid distinctions to be justly drawn between different instances of serious misconduct depending on the degree of employee fault that is involved.&nbsp;<\/li>\n\n\n\n<li>That leads to my third point. Did not the requirement under s\u202f125(2) for the Court to be persuaded that reinstatement is&nbsp;\u2018practicable and reasonable\u2019&nbsp;give employers a sufficiently strong level of comfort that perverse outcomes in this area are very unlikely?\u201d&nbsp;<\/li>\n<\/ol>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What&nbsp;else is happening&nbsp;in 2026?<\/strong>&nbsp;<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Among other things:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The&nbsp;Public Service Amendment Bill 2025&nbsp;(which includes&nbsp;various amendments related to employment in the public service)&nbsp;is awaiting its third reading&nbsp;and comes into force on the day after Royal assent.&nbsp;<\/li>\n\n\n\n<li>The&nbsp;Health and Safety at Work Amendment Bill 2026&nbsp;(intended to reduce unnecessary compliance costs, increase certainty for&nbsp;PCBUs&nbsp;about their obligations, and reduce the incidence of workplace fatalities,&nbsp;injuries&nbsp;and illnesses)&nbsp;is at&nbsp;the&nbsp;select committee&nbsp;stage&nbsp;(report due&nbsp;in June).&nbsp;<\/li>\n\n\n\n<li>The&nbsp;Employment Leave&nbsp;Bill&nbsp;2026&nbsp;(intended&nbsp;to replace the&nbsp;Holidays Act 2003,&nbsp;with a 24-month implementation period)&nbsp;is at the select committee stage (report due in July).&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>For up-to-date&nbsp;employment&nbsp;law&nbsp;information and commentary, subscribe to&nbsp;<a href=\"https:\/\/www.thomsonreuters.co.nz\/en\/products-services\/legal\/westlaw-new-zealand\/practice-areas\/employment.html\" target=\"_blank\" rel=\"noreferrer noopener\">Westlaw New Zealand<\/a>.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thanks to Kevin Leary, Senior Legal\u202fEditor,\u202fand Employment Law\u2019s expert author team:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Philip Bartlett (formerly of Bartlett Partners)&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kylie Dunn (Partner, Smith Dunn)&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Christina Inglis (Chief Judge, Employment Court of New Zealand)&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ashley-Jayne (AJ) Lodge (Partner, Anderson Lloyd)&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Scott Worthy (Executive Partner, Kiely Thompson Caisley)&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other articles of interest includes: <a href=\"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/new-zealand-joins-budapest-convention-on-cybercrime\">New Zealand joins Budapest Convention on Cybercrime,<\/a>&nbsp;<a href=\"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/westlaw-supports-community-law-centres\">The High Court Rules Reform<\/a>,&nbsp;<a href=\"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/licensing-online-casino-gambling-in-new-zealand\">Update on Online Casino Gambling,<\/a>&nbsp;<a href=\"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/current-criminal-law\">Current Criminal insights<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/westlaw-supports-community-law-centres\">Community Law Centre partnership<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>2026 promises to be&nbsp;a year of&nbsp;multiple&nbsp;changes to employment&nbsp;legislation.&nbsp;The first&nbsp;wave of change&nbsp;broke in&nbsp;February.&nbsp; Overview&nbsp; The&nbsp;Employment Relations Amendment&nbsp;Act&nbsp;2026 came into force on&nbsp;21 February 2026&nbsp;(the day after Royal assent).&nbsp;The preceding Bill&nbsp;began&nbsp;with&nbsp;this&nbsp;general policy statement:&nbsp;&hellip;<\/p>\n","protected":false},"author":2,"featured_media":3311,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[513,842,514,603,625,497],"tags":[],"insight_job_role":[445,824,447,805,637,470,604,487,499],"insight_practice_area":[464],"class_list":["entry","author-legaladmin","post-4062","post","type-post","status-publish","format-standard","has-post-thumbnail","category-legal-commentary-and-opinion","category-legal-industry","category-legal-research","category-legislation-and-case-law","category-research-and-commentary","category-research-and-know-how","insight_job_role-academic","insight_job_role-associate","insight_job_role-barrister","insight_job_role-chief-people-officer","insight_job_role-hr-manager-officer","insight_job_role-hr-ir-professional","insight_job_role-lawyer","insight_job_role-partner","insight_job_role-solicitor","insight_practice_area-employment-law","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Expert&#039;s Edge Special: Employment Law - the first major changes of 2026 - TR - Legal Insight New Zealand<\/title>\n<meta name=\"description\" content=\"2026 promises to be\u00a0a year of\u00a0multiple\u00a0changes to employment\u00a0legislation.\u00a0The first\u00a0wave of change\u00a0broke in\u00a0February.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/employment-law-the-first-major-changes-of-2026\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Expert&#039;s Edge Special: Employment Law - the first major changes of 2026 - TR - Legal Insight New Zealand\" \/>\n<meta property=\"og:description\" content=\"2026 promises to be\u00a0a year of\u00a0multiple\u00a0changes to employment\u00a0legislation.\u00a0The first\u00a0wave of change\u00a0broke in\u00a0February.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/employment-law-the-first-major-changes-of-2026\" \/>\n<meta property=\"og:site_name\" content=\"TR - Legal Insight New Zealand\" \/>\n<meta property=\"article:published_time\" content=\"2026-04-14T01:01:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-14T01:01:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/insight.thomsonreuters.co.nz\/legal\/wp-content\/uploads\/sites\/13\/2023\/05\/GettyImages-1401370500-min.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1706\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Thomson Reuters\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Thomson Reuters\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/employment-law-the-first-major-changes-of-2026#article\",\"isPartOf\":{\"@id\":\"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/employment-law-the-first-major-changes-of-2026\"},\"author\":{\"name\":\"Thomson Reuters\",\"@id\":\"https:\/\/insight.thomsonreuters.co.nz\/legal\/#\/schema\/person\/2bef04c354a07d57664d2e4c71312c9d\"},\"headline\":\"The Expert&#8217;s Edge Special: Employment Law &#8211; 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