The Employment Relations Amendment Act 2026 made several significant changes to New Zealand employment law. If you haven't updated your employment agreements and HR processes yet, here's what's changed and what you need to do.
1. The 30-day rule is gone
Previously, newly hired employees had to receive terms and conditions no less favourable than the applicable collective agreement for the first 30 days of employment. The 2026 amendments repealed this requirement.
What this means practically: any clauses in your employment agreement templates that reference the 30-day rule are now redundant. They won't cause legal problems, but they add confusion — especially if you have a collective agreement that employees might compare against.
Action required: Review your employment agreement templates and remove or update any reference to the 30-day rule. ERA 2000 s62A — repealed
2. Flexible working requests: 10 working days, not one month
Employers must now respond to flexible working requests within 10 working days — down from the previous one month. This is a significant reduction that many HR processes aren't set up for.
The response doesn't need to approve the request. But it must be a substantive response — acknowledging the request and either agreeing, proposing an alternative, or refusing with reasons. A holding reply doesn't satisfy the obligation.
Action required: Update your flexible working request process. If you're using a form, update the expected response timeframe. Brief managers — 10 working days is 2 calendar weeks, not a month. ERA 2000 s69AAF (amended)
3. The contractor gateway test — five factors that must all be present
This is the biggest change with the most risk exposure. The 2026 amendments introduced a five-factor "gateway test" to determine whether a contractor arrangement is genuine.
For a worker to be legitimately engaged as a contractor, all five factors must be present in the written agreement AND reflected in the actual working arrangement:
- The worker can subcontract or delegate the work
- The worker provides their own equipment or infrastructure
- The worker is free to work for other clients
- The worker is paid on a results or output basis (not by the hour)
- The worker bears real financial risk from the arrangement
If any of the five aren't present, or if the written agreement says one thing but the working reality says another, the worker may be an employee — with all the entitlements that follow (holiday pay, KiwiSaver, minimum wage, personal grievance rights).
Highest risk scenario: A contractor who works set hours on your premises, uses your equipment, and works exclusively for you. However the paperwork is structured, that person likely fails 3-4 of the five factors. ERA 2026 s6(7)
What to do now
Immediate (this week)
- Identify all current contractor arrangements
- Apply the 5-factor test to each one honestly
- Flag any that fail one or more factors for legal review
This month
- Update employment agreement templates (remove 30-day rule references)
- Update flexible working response procedures and brief managers
- Document genuine contractor arrangements against the five factors
Check your agreements with ShiftScript
Upload your employment agreements and ask: "Does this contract comply with ERA 2026?" Get a cited answer in seconds.