The New Zealand government is proposing changes to the Employment Relations Act to introduce a new test for determining whether a worker is a contractor or an employee. The new test, known as the "gateway test," will have four criteria:

• A written agreement stating that the worker is an independent contractor.
• The business does not restrict the worker from working for other businesses.
• The business does not require the worker to be available at specific times or for a minimum number of hours, or the worker can subcontract the work.
• The business does not terminate the contract if the worker does not accept additional work.

The government believes that the current process for workers challenging their employment status through the courts is costly for businesses and creates uncertainty. The new test is intended to address these issues.

Recent court cases have also highlighted the difficulty of distinguishing between contractors and employees under the current law. In 2022, the Employment Court found that four Uber drivers were employees, not contractors. This decision was upheld by the Court of Appeal in 2024.

The government is expected to introduce an Employment Relations Amendment Bill to Parliament in 2025. The public will have the opportunity to make submissions on the bill after it has been introduced.