NEW ZEALAND Trends and Developments Contributed by: Briar Shaw, Julia MacGibbon, Kate Hatwell, Tina Liu, Jessica Phillips and Natalie Foster, Tompkins Wake
tangible economic impact by employing at least five full-time equivalent staff, and create at least one new lasting job for a New Zealand citizen or resident. Phys - ical presence is also required, with applicants needing to have spent a minimum of 184 days in the country in each of the previous three years. The business invested in must have been trading for at least five years, must be lawfully operating in New Zealand, and must have a purchase price of at least NZD1 million (not including property value or GST), resulting in the investor owning at least 25% of the business. Taken together, these two investor immigration path - ways and the OIA reforms send an unmistakable sig - nal: New Zealand is actively competing for internation - al capital and business talent. For offshore investors and business owners weighing their options, the com - bination of streamlined regulatory approval and clear immigration pathways removes barriers that have his - torically made New Zealand a difficult market to enter. The Gig Economy After Uber: Rewiring Employment Relations In late 2025, New Zealand’s Supreme Court delivered a landmark ruling: the four Uber drivers who are party to the case are employees, not independent contrac - tors. The decision had profound implications for tens of thousands of workers across ride-sharing, food delivery, courier services and other platform-based industries. However, the government moved swiftly in its legislative response. The Employment Relations Amendment Act 2026 introduced a new framework for “specified contractor” where, if five criteria are met, the person is deemed to be a specified contractor rather than an employ - ee and is thereby excluded from the protections of the Employment Relations Act 2000. The intent is to give platform businesses and their workers contrac - tual certainty, but the reform has attracted criticism from unions and worker advocates, who argue that it allows businesses to opt out of the protections the Uber ruling was designed to provide. The govern - ment’s position is that flexibility and worker choice should be valued alongside formal protection, which
is a debate that will continue to play out politically and in the courts. For businesses operating in or entering the gig econ - omy, the practical implications are significant. • Platform businesses should urgently review their contractor arrangements and assess whether the new specified contractor provisions apply to their operating models. If they do not meet the specified contractor test, the common law test to determine the true nature of the relationship applies. • Traditional employers need to recognise that the legal test for employment status has been clarified for all industries, not just app-based platforms. The distinction between employee and contrac - tor is now more carefully scrutinised across the economy. Beyond the gig economy, 2026 brings a raft of other potential employment law changes. The Employment Leave Bill is set to reform the Holidays Act 2003 after years of controversy about how leave entitlements are calculated. Now awaiting Royal Assent, it will deliver long-awaited simplification for employers and payroll providers. A new high-income threshold has been introduced, under which employees earning at or above that threshold will be barred from bringing a personal grievance in respect of their dismissal. For existing employees (prior to 21 February 2026), there is a transition period, with the law not taking effect until 21 February 2027. Together, these reforms represent a substantial reshaping of New Zealand employment law, and any business operating in this market should undertake a thorough review of its people practices without delay. The 2026 Election: Government Policy and Tax in Focus New Zealand’s general election is confirmed for November 2026, and the political landscape is already shaping investment decisions and business planning. The National-led coalition government has spent its term pursuing a pro-growth agenda centred on regu - latory and planning reform, fiscal discipline and tax relief. Budget 2026, released by the current govern - ment, reinforces this agenda.
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