As we navigate the third quarter of 2024, it's evident that New Zealand's employment landscape is undergoing significant transformations. With a new government actively implementing legislative changes, it's imperative for businesses to remain well-informed and adaptable.

Key Developments

• Contractor or Employee? Introducing the Gateway Test: The distinction between contractors and employees is often a subject of confusion. To address this, the Employment Relations Act will soon introduce a "gateway test" to assist employers in accurately classifying their workforce.   
• Workplace Health and Safety: Your Input is Valued: The Ministry of Business, Innovation and Employment is actively seeking feedback on New Zealand's health and safety regulatory system. This presents a valuable opportunity for employers to contribute their insights and shape regulations that promote safe and productive work environments.   
• Holidays Act Simplification: The complexities of the Holidays Act have long been a source of frustration for employers. The proposed amendments aim to simplify holiday pay calculations, reducing the administrative burden and ensuring compliance.   
• Parental Leave Payments Increase: In a move that supports working parents, parental leave payments were increased on July 1, 2024. This adjustment reflects the government's commitment to providing financial assistance during this important life stage.   
• Insurance Law Modernisation: New Zealand's insurance law is undergoing a modernisation process. The Contracts of Insurance Bill, expected to be passed by the end of 2024, will introduce updates that benefit both consumers and businesses.   
• Accredited Employer Work Visa Changes: The Accredited Employer Work Visa (AEWV) scheme has undergone a series of revisions aimed at enhancing its effectiveness. These changes include English language requirements, visa length adjustments, and skill checks.   
• Minimum Wage Adjustment: The minimum wage has been adjusted to $23.15 per hour.   
• Protecting Workers from Exploitation: New legislation has been enacted to strengthen protections for workers, particularly migrant workers, against exploitation. This includes harsher penalties for employers found to be in breach of employment laws.   

‍