Employment Relations, Holidays Act, and KiwiSaver updates—key changes in force and what’s next

The start of 2026 has brought a wave of significant changes for employers and HR professionals across New Zealand.  From a new approach to employment disputes to proposed leave entitlements and KiwiSaver tweaks, here’s what you need to know to stay ahead.

Employment Relations Amendment Act 2026: A new lens on disputes

The Employment Relations Amendment Act 2026 is now in force, and it’s shaking up how personal grievances and serious misconduct are handled.  The focus has shifted away from procedural technicalities and towards an employee’s own contribution to their situation.  This means that, in disputes, the role of the employee—especially in cases of serious misconduct—will carry more weight than whether every procedural box was ticked.  The aim is to resolve issues more fairly and efficiently, reducing drawn-out arguments over minor process slip-ups.  The concern on the other hand is that employees making more minor contributions to the circumstances may nonetheless have reduced access to justice.  Where the situation is not a dismissal, we may see a rise in breach of contract claims.

What we are currently waiting to see is how the Authority will apply the new laws where a claim is brought after they were enacted but relating to an action or dismissal that took place prior to the Amendment Act passing.  Precedent from 2011 suggests that the Authority will apply the law as it was when the action or dismissal occurred, rather than when the personal grievance was raised or when a statement of problem was filed.

What’s Changing for Holidays?  The Employment Leave Bill

Proposed amendments to the Holidays Act 2003, outlined in the Employment Leave Bill, are set to modernise leave entitlements.  Key changes include:

  • Annual leave accrual: Employees will start accruing annual leave from day one, rather than after 12 months.
  • Bereavement and sick leave: Access to these types of leave will also start earlier in employment.
  • More transparent calculations: New rules aim to simplify how leave payments are calculated, reducing confusion for both employers and employees.

Employers should review their payroll systems, update employment agreements, and communicate clearly with staff about these upcoming changes.  Early preparation will smooth the transition and help avoid compliance headaches.  However, it’s important to note that casual and part-time employees may be disadvantaged by some of the new calculation methods, potentially receiving less leave than under the old regime.

KiwiSaver Changes: What’s coming from 1 April 2026?

From 1 April 2026, updated KiwiSaver rules will take effect, impacting employer contributions and enrolment processes.  Minimum employer and employee contributions are increasing to 3.5%.  Make sure your payroll processes are ready, and keep your teams informed so there are no surprises come April.

Final Thought

2026 is a year of transformation for New Zealand’s workplace laws.  By understanding these changes and acting early, employers can reduce risk, support their teams, and create a positive workplace culture.  Of course, the big question is whether these changes will survive the upcoming election.  If the Government changes, there is a high likelihood of some of these changes being rolled back.

 

Chris Scarrott is our employment law specialist.