- Hon Brooke van Velden
The Government is welcoming a Select Committee report on the Employment Relations Amendment Bill, marking an important step in employment law reform, Workplace Relations and Safety Minister Brooke van Velden says.
"I'm pleased to see that the report from the Education and Workforce Committee aligns with Government decisions. It includes recommendations that strengthen the Bill while keeping its core objectives intact," Ms van Velden says.
The Committee has recommended refinements to the gateway test criteria for contractors to provide clarity on the types of contracting arrangements covered, including platform-based arrangements.
"I have considered the submissions, and I am persuaded by some proposals to refine the Bill to further enhance labour market flexibility and reduce compliance costs.
"I welcome the Committee's recommendations on the gateway test, which provide additional certainty and ensure the test is fit for purpose for contemporary, flexible working arrangements."
Refinements to the gateway test include:
- Clarifying that businesses that do not categorise workers as 'independent contractors' (e.g. platform-based arrangements) can still access the gateway test if they specify that the worker is 'not an employee';
- Specifying that contracting someone to work the equivalent of full-time hours does not in itself constitute a restriction on working for others;
- Clarifying that businesses would be allowed to vet sub-contractors for particular qualifications or require a criminal record check of a sub-contractor if justified by the nature of the work.
Recent Cabinet decisions were made about the income threshold for raising an unjustified dismissal personal grievance, to expand the definition of income to cover all remuneration, including bonuses and share schemes, reflecting the reality of modern pay structures. The Committee's report aligned with that decision.
"I am aware that such remuneration structures are common in start-ups and growing companies that could benefit from this policy, where agility is critical for success.
"To ensure that this change does not increase the number of people captured by the threshold, I am pleased that the Committee's report also aligned with Cabinet's decision to raise the threshold from $180,000 to $200,000 per year."
"I'm looking forward to progressing the Employment Relations Amendment Bill in early 2026 and delivering these important changes for workers and businesses.
"The Government remains committed to improving labour market flexibility and helping businesses grow, innovate, and employ with confidence," Ms van Velden says.
Editor notes:
- Full details of the select committee report are available on the Parliament website: https://selectcommittees.parliament.nz/v/6/82887efe-3480-4258-71cd-08de35fbd891?lang=en
- The Cabinet paper can be found here:
