The past year has seen a series of significant developments within the New Zealand employment law framework. As we move further into 2026, it is a timely moment for both organisations and staff to reflect on the legislative updates that occurred throughout 2025 and prepare for upcoming proposals currently making their way through Parliament. This post provides an overview of the key changes affecting workplaces across the country.

Important Changes Established In 2025

Several landmark pieces of legislation were passed in 2025 that altered day-to-day operations for many businesses. Perhaps the most notable was the criminalisation of intentional underpayment, now classified as wage theft. Under the Crimes (Theft by Employer) Amendment Act, employers who deliberately underpay staff can face criminal prosecution, separate from existing civil penalties. For an individual employer, the maximum penalty includes one year of imprisonment or a $5,000 fine. For other entities, the maximum fine is $30,000. It is important to note that this Act specifically targets intentional actions and does not apply to genuine administrative errors or accidental mistakes.

• Fple: If a company director intentionally alters timesheets to avoid paying overtime that was clearly earned and agreed upon, this could be investigated as wage theft. Conversely, if a payroll software glitch causes a small underpayment that is corrected once discovered, the criminal provisions would likely not apply.

The 2025 calendar year also saw changes to workplace transparency and industrial action. On 26 August 2025, pay secrecy clauses became unenforceable. Employees are now permitted to discuss or disclose their remuneration with others without fear of disadvantage or dismissal. If an employee faces negative consequences for sharing their pay details, they may be eligible to raise a personal grievance claim. Furthermore, since 30 June 2025, employers have had the legal right to make pay deductions for partial strikes. A partial strike involves employees continuing to work but at a reduced rate or by refusing specific tasks. This change aims to help businesses manage the financial impact of industrial action.

Updated Minimum Wage Rates

Annual adjustments to the minimum wage took effect on 1 April 2025. These rates apply across different categories of workers to ensure a consistent baseline for remuneration.

• The adult minimum wage increased to $23.50 per hour for employees aged 16 and over.

• The starting-out wage rose to $18.80 per hour, applicable to certain 16 to 19-year-olds in their first six months of employment.

• The training minimum wage also increased to $18.80 per hour for employees aged 20 or over involved in specific industry training programmes.

Accredited Employer Work Visa Adjustments

Immigration and employment settings for migrant workers were refined in early 2025. On 10 March 2025, several changes to the Accredited Employer Work Visa (AEWV) were implemented to provide more flexibility. Key updates included the removal of certain wage thresholds and the reduction of the required work experience from three years down to two. Additionally, migrants in lower-skilled roles can now remain in New Zealand for three years instead of two, with some roles qualifying for a total stay of five years.

Forthcoming KiwiSaver And Leave Proposals

Looking ahead, several changes are already scheduled or proposed. On 1 April 2026, default KiwiSaver contribution rates for both employers and employees are set to increase from 3% to 3.5%. Employees will also be able to apply for a temporary rate reduction starting from 1 February 2026. In a significant shift, workers aged 16 and 17 will become eligible for employer contributions from April 2026.

The Government has also signalled a proposal to repeal the Holidays Act and replace it with a new Employment Leave Act. While the current Act remains in force, the proposed replacement aims to provide fresh guidelines for leave and pay. Current estimates suggest this new legislation could be implemented by approximately 2028, following a planned implementation period.

Potential Amendments To The Employment Relations Act

The Employment Relations Amendment Bill contains several proposals that have passed their first reading and could change how disputes are managed.

• Personal Grievance Thresholds: A proposed income threshold of $180,000 per annum would mean employees earning above this amount could no longer raise unjustified dismissal claims. This is intended to provide more flexibility in high-level hiring, though parties could still choose to negotiate their own dismissal procedures.

• Removal of Remedies: There is a proposal to remove remedies, such as compensation or reinstatement, for employees found to be at fault in a dispute, particularly in cases of serious misconduct.

• Contractor Gateway Test: A new 'gateway test' is being considered to help businesses clearly distinguish between employees and contractors, which may reduce future classification disputes.

Finally, the Government is consulting on changes to the Health and Safety at Work Act to reduce compliance requirements for small and medium-sized enterprises (SMEs). These proposals focus on sharpening the Act's focus on critical risks and reducing the administrative burden of notifications for minor events.

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