Five Million Voices

Should the Employment Relations Act be amended to add a contractor "gateway test", set a $180,000 income threshold above which unjustified dismissal grievances cannot be pursued, reduce remedies based on employee behaviour, and remove the 30-day rule?

The bill amends the Employment Relations Act 2000 to change how contractor status is determined, alter personal grievance remedies and thresholds, and remove the requirement that new employees' agreements reflect an applicable collective agreement for their first 30 days.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued that current labour market regulations create uncertainty and costs that discourage hiring and investment, and that greater flexibility would help businesses grow and create employment.
  • Supporters said the personal grievance settings are imbalanced, citing cases where workers dismissed for serious misconduct still received compensation, and the bill would tie remedies to employee behaviour.
  • Supporters contended that an income threshold for unjustified-dismissal grievances and the expansion of 90-day trials would let employers give new talent a chance in high-impact roles and reduce compliance burdens.
Why oppose it
  • Opponents argued the changes shift power further toward employers and weaken protections for workers, leaving employees on the back foot in the employment relationship.
  • Opponents said the gateway test for contractor status could override court findings that workers such as Uber drivers are effectively employees, denying them associated protections.
  • Opponents contended that removing the 30-day rule undermines collective agreements and erects barriers to workers joining them, and disputed the claim that the bill would lift wages or productivity.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

This bill amends the Employment Relations Act 2000. It introduces a “gateway test” — a set of clear criteria that, if met, mean a worker is legally a contractor rather than an employee, giving both businesses and workers more certainty about which arrangement applies. It sets an income threshold (around $180,000) above which an employee can no longer bring a personal grievance for unjustified dismissal, and it removes the “30-day rule” that currently requires new employees to be offered union-negotiated collective terms for their first month. It affects employers, contractors and higher-earning employees.

The changes arise from the National–ACT coalition agreement. The argument for is that they cut compliance costs and legal uncertainty, allow terms to be negotiated freely from day one, and let high earners and firms strike their own deals without grievance risk. The argument against, made by unions and worker advocates, is that they erode protections, risk genuine employees being misclassified as contractors and losing minimum entitlements, and strip dismissal rights from a growing group as the threshold is not indexed.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Employment Relations Amendment Bill · Third Reading, 17 Feb 2026
Parliament voted 68–54 — it passed. (Provisional — from Hansard’s uncorrected transcript.)