5 New Workplace Regulations You Should Prepare for Before Year-End

The new year brings new rules for New Zealand businesses so deal with red tape now and avoid being red-faced in 2026

The next 12 months will see some of the biggest shifts in New Zealand’s workplace regulations in years. For small-business owners and HR leads, the run-up to summer is the prime time to prepare systems, policies, and people. Consider these five key rule changes before you log off for the holidays.

1. Holidays Act and Payroll Reform: Fix the Foundations

The Holidays Act 2003 has been a compliance headache for years, and MBIE continues to find widespread payroll errors, especially among small businesses with variable-hour staff. Reforms are on the way, moving toward an hours-worked calculation model and removing the “parental-leave penalty.”

“Now is the time to get your house in order,” says Employment Hero’s David Holland, MD of Talent at Employment Hero, “Audit leave balances, fix any legacy errors and make sure you have a  payroll system that can cope with new calculation rules. The Labour Inspectorate’s enforcement actions show that even small mistakes can be expensive to fix.” 

2. Employment Relations Amendment Bill 2025: Rethink Contracts and Pay Transparency

An employment law overhaul will change the way you hire, classify, and exit staff. The Employment Relations Amendment Bill 2025 is set to introduce a ‘gateway test’ to clarify contractor status –  a big deal for SMEs using freelancers or seasonal hires. Take the time now to examine arrangements and see whether people meet the criteria for contractors or should in fact be employees.

The Bill will also prevent employees earning more than $180,000 annually from raising unjustified-dismissal claims, although they will retain protection against discrimination and bullying. At the same time, the Employee Remuneration Disclosure Amendment Act 2025 strengthens workers’ rights to discuss pay, ushering in greater transparency.

For employers, now is the time to update dispute procedures and make sure pay policies are clear and defensible. Clarity now prevents confusion and legal trouble later.

3. KiwiSaver Adjustments: Budget for Rising Contributions

The Government’s Budget 2025 announcements confirmed a series of KiwiSaver tweaks that affect both employers and staff. Since July 1, government contributions have halved and employees earning over $180,000 no longer qualify. 16- and 17-year-olds have become eligible.

Businesses must plan for the next phase, beginning 1 April 2026, when the default contribution rate for both employees and employers rises from 3 % to 3.5 %. Prepare for another increase, to 4%, in April 2028. For SMEs operating on tight margins, these changes will lift labour costs, so it would be wise to review payroll settings now and factor higher contribution rates into your 2026 budget.

4. Health & Safety Reform: Focus on Critical Risks

Health and safety laws are being reshaped to make compliance easier for low-risk businesses and tougher in more dangerous sectors. Reforms to the Health and Safety at Work Act 2015 look set to be finalised next year and will refocus duties on critical risks while reducing paperwork for small operators. At the same time, WorkSafe NZ continues to highlight psychosocial hazards such as stress, fatigue, bullying and workload pressure.

In short, both physical and mental safety are now top priorities. Employers must ensure their risk registers and OH&S policies cover both.

5. Privacy Act Amendment (IPP 3A): New Rules for Third-Party Data

From 1 May 2026, a new Information Privacy Principle (IPP 3A) will require businesses that collect personal information from a third party – say, a background-check provider or referral partner –  to notify the individual concerned. This brings NZ privacy standards into line with Australia’s and the EU’s.

“The priority for most organisations will be mapping how and where they collect data indirectly,” says Holland. “The results may surprise them. Business owners should review contracts with third-party data providers, train staff to recognise when notification is required and update privacy policies. Protecting personal information has never been more important, so being open about privacy makes good business sense.” 

Every Kiwi employer will inevitably need to invest time and effort in keeping up with the changing compliance landscape in 2026. But preparing early turns requirements into opportunities – to modernise systems, clarify policies and strengthen trust with staff, while avoiding nasty surprises.