Employment Law Changes Clubs Need to Know About in 2026

1 April 2026

A number of employment law changes have now come into force following the introduction of the Employment Relations Amendment Bill in February this year, alongside annual payroll updates that take effect today on 1 April 2026. This overview highlights the key points for clubs.

New "Gateway Test" for Independent Contractors

A new gateway test now applies when determining whether a worker is a genuine contractor rather than an employee. If ALL criteria are met, the person will be recognised as a specified contractor and cannot later claim employee status.

Key criteria include:

• A written agreement stating the worker is an independent contractor.
• The worker is free to work for other businesses.
• No requirement to work set hours or the worker can subcontract the work.
• The business cannot terminate the relationship simply because the worker declines additional work.
• The worker had a reasonable opportunity to seek independent advice before signing.

If any criterion is not met, the existing "real nature of the relationship" test will still apply.

What this means for clubs:

Review your contractor agreements (if any). If you rely on flexibility or restrict subcontracting, check whether your arrangements still meet the new criteria.

Changes to Personal Grievance Remedies

Two important changes affect how personal grievances (PGs) are assessed:

Reduced remedies where employee behaviour contributed to the problem

If an employee's misconduct or behaviour contributed to the situation they're complaining about, the Employment Relations Authority or Court must now reduce or remove remedies.

Employees engaged in serious misconduct

Employees who raise PGs despite having committed serious misconduct may now be disentitled to remedies.

What this means for clubs:

Ensure that disciplinary processes are well documented. Your process is still critical and it will be important that you retain clear evidence of behaviour or misconduct.

New $200,000 Remuneration Threshold for PG Claims

Employees earning $200,000 or more per year under new employment agreements cannot raise a personal grievance for unjustified dismissal, unless both parties agree in writing to retain those protections. This threshold applies immediately to new agreements, with a 12-month transition for existing agreements.

What this means for clubs:

While this would not impact most clubs, if you employ senior managers or highly paid specialists, review their agreements and decide whether dismissal protections should be retained.

Removal of the 30-Day Rule

The long-standing requirement for new employees covered by a collective agreement to start on its terms for the first 30 days has been removed.

New employees may now agree to an individual employment agreement from day one.

What this means for clubs:

Simpler onboarding. You no longer need to apply the default collective terms for the first 30 days, but you must still provide information about union membership.

Minimum Wage Increase from 1 April 2026

The minimum wage has increased. New rates are:

• Adult minimum wage: $23.95 per hour
• Starting-out / training wage: $19.16 per hour

What this means for clubs:

• Update pay rates for all affected employees
• Check salaried staff to ensure their total hours worked do not drop their effective rate below the new minimum.
• Review budgets and consider pay relativity across your team.

KiwiSaver Changes from 1 April 2026

The default employee and employer contribution rates have increased from 3% to 3.5%.

Employees who wish to remain at 3% can apply to Inland Revenue for a temporary reduction (available from February 2026).

What this means for clubs:

• Update payroll systems to apply the new minimum employer contribution.
• Communicate with staff about changes to their deductions.
• Ensure new agreements reflect the updated rates.

It will be important to consider how these changes impact your club (if at all) and seek advice if necessary.