Employment law has shifted significantly in early 2026, and the changes are already reshaping how businesses hire,manage, and work with their people. For many rural and regional employers,where teams are small, roles are varied and relationships matter, these updates are worth understanding now so you can adjust with confidence rather than urgency.
The Employment Relations Amendment Act2026, which came into force on 21 February 2026, is the most substantial update in several years. It affects employment agreements, the way personal grievances are handled and how the law treats high‑earning employees. While the changes aim to bring more clarity and reduce disputes, they also place new responsibilities on employers to ensure their documents and processes are up to date.
One of the most talked about changes is the introduction of the high earner exception. Employees earning more than two hundred thousand dollars a year generally cannot bring a personal grievance for unjustified dismissal unless their employment agreement specifically preserves that right.
For existing employees, this shift does not take effect until February 2027, which gives employers time to review and update agreements. For new hires, it applies immediately.
For rural businesses where senior managers or specialist roles may fall into this bracket, it is important to ensure agreements are clear, fair and reflect the protections you intend to offer.
The law now requires the Employment Relations Authority and the Courts to reduce or remove remedies where an employee’s conduct has contributed to the situation.
There are now two distinct categories employers need to be aware of:
The distinction between an employee and a contractor has long been a grey area, especially in industries that rely on seasonal labour, specialist contractors or flexible working arrangements. The2026 reforms introduce a statutory gateway test that sets out when someone can be treated as a specified contractor.
If all gateway criteria are met, the worker is not an employee. If any criterion fails, the usual common law test still applies. This change aims to reduce disputes, but it also means businesses should review contractor agreements to ensure they align with the new framework.
The Government has confirmed that significant Holidays Act changes are on the way. These are expected to simplify calculations and reduce compliance issues, but they will require employers to update payroll systems and processes. Employers should keep an eye out for updates and plan ahead for implementation.
For most businesses, the next step is a practical one. Review your employment agreements, contractor arrangements and HR processes to ensure they reflect the 2026 changes. Early attention now can prevent disputes later and help maintain the strong working relationships that keep rural and regional businesses running smoothly.
If you would like support reviewing your agreements or understanding how these changes apply to your business, the Treadwell Gordon team is here to help. Get in touch with us and we can guide you through the updates and make sure your employment documents are fit for purpose in 2026.
