Legal update – H&S / Employment Legislation
2026 will be a year of change for workplace legislation in New Zealand. Across both Health & Safety and Employment legislation, expectations are evolving - for better or worse, time will tell. In Health & Safety, proposed changes to the Health and Safety at Work Act, a pivot in regulatory focus by WorkSafe and clear signals from the Government that it intends to cut red tape for small businesses are creating a climate of optimism, confusion and concern.
At the same time, long-awaited reform of the Holidays Act 2003 is progressing, with replacement legislation expected to be introduced during 2026 and phased implementation to follow. Amendments affecting personal grievance thresholds, contractor arrangements and restructuring processes are now in force.
For most employers, the changes will not feel dramatic, with little impact day to day. For others… this will not be the year to rely on what worked five years ago. It will pay to keep your finger firmly on the pulse.
Health and Safety at Work Act 2015
New Zealand’s health and safety regulatory landscape is in the midst of its biggest overhaul in more than a decade. On 9 February, the Government formally introduced the Health and Safety at Work Amendment Bill into Parliament. The Bill has since progressed through its first reading in the House, signalling the beginning of a full legislative process that will include select committee review and public submissions before any final enactment. This reform follows years of policy work and consultation aimed at simplifying compliance, clarifying duties and refocusing the regime toward preventing serious harm rather than broad-based “tick-box” regulation.
At its core, the Amendment Bill proposes to change how persons conducting a business or undertaking (PCBUs) approach risk. It would rewrite the purpose of the Health and Safety at Work Act 2015 to prioritise what are defined as critical risks - hazards that are likely to cause death, notifiable injury or serious illness - and require businesses to emphasise preventing those serious harms. A new legal category of “small PCBUs” (generally those with fewer than 20 workers) would see their duties narrowed to managing only critical risks and essential worker welfare, while larger PCBUs would still need to manage all risks but with a clear focus on the serious ones. Other proposed changes aim to clarify how the Act overlaps with other laws, strengthen Approved Codes of Practice as practical compliance guides, and tighten definitions to reduce uncertainty for businesses.
The Bill is still before Parliament and has not yet become law. Its passage through Select Committee will give stakeholders (including businesses, unions and industry bodies) the opportunity to submit on its proposals before further readings and potential amendment later in 2026. What has already happened - the formal introduction and first reading - marks a significant shift in regulatory philosophy toward proportional, risk-based compliance and clearer expectations for when and how health and safety duties arise.
Key proposed changes at a glance:
Rewriting the Act’s purpose to prioritise critical risks over all possible workplace hazards.
Defining critical risk and establishing clearer tests for PCBUs to identify them.
Creating a new category of small PCBUs with duties limited to critical risks and core welfare obligations.
Strengthening ACOPs so they can act as safe harbours for compliance.
Clarifying overlaps with other regulatory systems to reduce over-compliance burdens.
Employment Relations Amendment Act 2025
The Employment Relations Amendment Act 2025 received Royal Assent and came into force on 21 February 2026, representing some of the most significant reforms to the Employment Relations Act (2000) in decades. These changes are intended to increase flexibility, provide greater certainty for employers and recalibrate aspects of personal grievance law and contractor status that have long been debated in workplaces across the country. While some elements are framed as reducing red tape and balancing interests between employers and employees, they also shift certain protections and tests that businesses need to understand clearly.
Key changes now in effect:
A specified contractor gateway test clarifying when a worker is excluded from employee status.
A high-income threshold (initially $200,000) limiting personal grievance rights for unjustified dismissal, with a transitional opt-in period.
Stronger reductions (or elimination) of personal grievance remedies where employee conduct contributes or amounts to serious misconduct.
Removal of the automatic “30-day rule” that previously linked new employees to collective agreement terms for their first month of employment.
Clearer, more structured tests and rules around collective and individual agreement interactions.
These changes are now law and will shape employment practice throughout 2026 and beyond. For some employers, the changes will require careful review of contractual arrangements, personal grievance processes and HR policies to ensure compliance. For Safe Business Solution’s HR support clients, the appropriate documentation will be updated in due course.