Legislation Changes - April 2026 Update
In early 2026, several significant changes in privacy, employment and health & safety law have, or will soon, come into effect. For small and medium-sized enterprises (SMEs), these changes may have significant consequences and, in many cases, require updated processes and/or documentation to ensure compliance.
Here is a high-level summary of some of the most recent developments and what they mean for your business.
1. Employment Relations Amendment Act 2026
The most sweeping changes in years came into effect on 21 February 2026. This Act rebalances several key aspects of the employer-employee relationship:
High-Income Threshold ($200k+): Employees earning $200,000 or more in total annual remuneration (including bonuses and commissions) can no longer bring personal grievances for unjustified dismissal unless the employer and employee "opt back in". This applies immediately to new hires, while existing employees have a 12-month transition period.
Contractor "Gateway Test": A new five-part statutory test now determines if a worker is a contractor. If all five criteria—including a written agreement and freedom to work for others—are met, the worker is a "specified contractor" and cannot later claim employee status.
Reduced Remedies for Misconduct: If an employee’s actions contributed to a grievance and amounted to serious misconduct, authorities are now barred from awarding any remedies at all.
Removal of the "30-Day Rule": New employees are no longer automatically required to start on collective agreement terms for their first 30 days; individual agreements can apply from day one.
2. Privacy Amendment Act 2025: Indirect Collection
While this Act has passed, the headline change, Information Privacy Principle 3A (IPP 3A), comes into force on 1 May 2026.
The Change: Agencies will now be legally required to notify individuals when their personal information is collected indirectly (from a third-party source).
Business Impact: If you receive customer or candidate data from partners or referees, you must update your privacy statements and internal processes to ensure these individuals are notified of the collection, its purpose, and their rights.
3. Health and Safety Reform & Gibson v Maritime NZ
The scope of personal liability for directors and executives has been under intense scrutiny following the High Court’s April 2026 decision in Gibson v Maritime NZ.
Personal Liability: The High Court upheld the conviction of a former CEO for failing to exercise "due diligence". The case clarifies that "paper systems" aren't enough; leaders must proactively verify that safety controls are actually working "on the ground".
Proposed 2026 Reforms: The government has introduced a Health and Safety at Work Amendment Bill to narrow the Act’s purpose towards preventing "serious harm" and to provide clearer boundaries for "officer" duties, especially for those in dual governance and operational roles.
4. The Employment Leave Bill (Replacing the Holidays Act)
Introduced in March 2026, this Bill aims to finally simplify leave calculations by moving to an hours-based accrual model.
Accrual from Day One: Annual and sick leave will begin accruing in hours from the first day of employment.
Timeline: While the Bill is expected to pass in late 2026, the new system likely won't take effect until 2028, giving you two years to transition your payroll systems.
While these summaries provide a bird’s-eye view, the practical impact of the 2026 reforms will differ for every business. Don't leave your compliance to chance—get in touch for a tailored briefing on exactly how these changes affect your industry and your team.