Thank you to everyone who joined our recent Employment Law Update webinar with Matthew Dearing, Senior Legal Counsel presenting on behalf of Edwards Sluiters Employment Lawyers.
It was great to see so many employers, HR professionals and business leaders take the time to join the discussion. Employment law is constantly evolving, and it's clear from the level of engagement throughout the session that organisations are focused on understanding what these changes mean in practice.
While the legislative changes themselves are important, what stood out to me most was the discussion around how employers can apply them in a fair, practical and commercially sensible way.
Matthew did an excellent job of cutting through the legal detail and explaining where employers should be paying attention now, while also acknowledging that many of these reforms will continue to evolve as the Employment Relations Authority and the courts begin interpreting the new legislation.
From the questions we received during the session, it was clear that many employers aren't just trying to understand the legislation. They're looking for practical guidance on how to apply it confidently within their own organisations.
Here are some of the key themes and practical takeaways that stood out to me from the discussion.
The Biggest Message: More Flexibility Doesn't Mean Less Responsibility
If there was one message that stayed with me after hosting the session, it was this: while the recent legislative changes provide employers with greater flexibility in some areas, they shouldn't be viewed as permission to take shortcuts.
Throughout the discussion, Matthew consistently reinforced that these reforms are about providing greater certainty and reducing unnecessary complexity, not lowering the standard expected of employers.
He explained that organisations are still expected to act fairly, reasonably and consistently when making decisions that affect their people. While some of the legal tests have changed, the underlying expectation of good employment practice has not.
Throughout the webinar, Matthew kept coming back to one of the fundamental principles of employment law: employers should always consider whether their actions are those that a fair and reasonable employer would take in the circumstances.
I thought this was an important reminder. It's easy to focus on what has changed in the legislation, but for most employers, the day-to-day principles of good leadership remain the same. Strong communication, fair processes and well-documented decision-making will continue to place organisations in the best position, regardless of how the legislation evolves.
Employment Relations Act Changes
The recent amendments to the Employment Relations Act were a major focus of the webinar and generated plenty of discussion. While many employers were aware the legislation had changed, Matthew explained that understanding how those changes apply in practice is just as important.
The reforms are designed to provide greater certainty for employers while reducing some of the complexity that has developed through years of case law. They cover a number of areas, including personal grievance provisions, contractor arrangements, union processes and the introduction of the new high-income threshold.
One of the more significant changes discussed was the increased focus on employee contribution during personal grievance claims. Matthew explained that the legislation now places greater emphasis on whether an employee has actually been treated unfairly, rather than focusing solely on procedural defects.
At the same time, he stressed that employers shouldn't see these changes as a reason to move away from good employment practices. Investigating concerns thoroughly, giving employees an opportunity to respond and documenting how decisions are reached remain essential.
For me, that reinforced one of the biggest takeaways from the webinar. While some of the legal tests have changed, the importance of acting fairly and following a robust process has not.
Process Still Matters
Another point Matthew returned to throughout the webinar was the importance of process. While recent reforms may provide employers with greater flexibility in some situations, they don't reduce the need for robust employment practices.
Good documentation remains one of the strongest protections an employer has. Keeping clear records of meetings, investigations, correspondence and decision-making helps demonstrate not only what decisions were made, but how they were reached.
Matthew also encouraged employers to review their employment agreements and workplace policies regularly, particularly around areas such as serious misconduct. Many organisations have policies that have been in place for years and may no longer reflect current legislation.
This was a timely reminder that compliance shouldn't only be considered when an issue arises. Regularly reviewing your documentation and processes can help ensure your organisation is prepared for legislative change before it becomes a problem.
The New High-Income Threshold
The introduction of the new high-income threshold was one of the biggest talking points of the webinar and generated more questions than any other topic. It's easy to see why, as many organisations are still working through what the changes mean in practice.
Matthew explained that employees earning a total remuneration package of $200,000 or more are now subject to different dismissal provisions under the Employment Relations Act. He also highlighted that the legislation looks at an employee's total remuneration package, not simply their annual salary, making it important for employers to understand how the threshold is calculated before relying on the new provisions.
Another important point was that the threshold doesn't remove all legal protections. Employees may still be able to bring claims relating to discrimination, harassment, bullying or breaches of contractual obligations, even if unjustified dismissal provisions no longer apply.
What I found particularly interesting was that organisations are already taking different approaches. While some are adopting the legislation as introduced, others are choosing to retain additional protections within their employment agreements because it better reflects their organisational values and culture.
Contractors and Employees: Creating Greater Certainty
The new contractor gateway test is another reform that will be particularly relevant for organisations engaging independent contractors. With more businesses embracing flexible working arrangements, having greater certainty around contractor relationships is a welcome development.
Matthew explained that the gateway test introduces a clearer statutory framework by setting out specific criteria that contractor arrangements must meet. These include having a written contractor agreement, allowing contractors to work for other businesses, providing flexibility around accepting work or subcontracting, and ensuring they have the opportunity to seek independent legal advice before signing the agreement.
One of Matthew's key messages was that failing to meet every part of the gateway test doesn't automatically mean someone becomes an employee. Instead, the assessment simply returns to the existing common law tests that consider the true nature of the working relationship.
For organisations that regularly engage contractors, it was a timely reminder to review existing agreements and ensure they accurately reflect how those relationships operate in practice.
Looking Ahead to Holidays Act Reform
Although the proposed Holidays Act reforms are not yet in force, they were another key area of discussion during the webinar. For many employers, these changes have the potential to significantly simplify an area of legislation that has long been recognised as complex.
Matthew explained that the proposed reforms aim to make leave entitlements easier to understand and administer, particularly for employees with variable hours, commissions, overtime or irregular working patterns. Among the proposed changes are leave accruing from an employee's first day of work and a simplified approach to calculating leave payments.
Importantly, Matthew reminded attendees that the current Holidays Act remains in place until the new legislation is passed and implemented. While employers don't need to make immediate changes, now is a good time to understand what's being proposed and start thinking about how future reforms may affect payroll systems and internal processes.
Given how significant these changes are expected to be, early preparation will help make the eventual transition much smoother.
Health and Safety: The Growing Focus on Psychosocial Risk
The final topic Matthew covered was the growing focus on psychosocial risk in the workplace. While health and safety has traditionally centred on physical hazards, employers are now expected to give the same level of attention to factors that may impact psychological health and wellbeing.
Matthew explained that this isn't about eliminating all workplace stress. Instead, it's about identifying and managing work-related risks such as excessive workloads, poor role clarity, workplace conflict, bullying, harassment and prolonged exposure to high-pressure environments.
What really resonated with me was that many of these risks come back to good leadership and workplace culture. Regular check-ins, clear communication, appropriate workload management and effective reporting processes can all play an important role in identifying issues before they escalate.
As our workplaces continue to evolve, it's clear that creating a safe workplace means looking after both physical and psychological wellbeing.
Questions from Employers
One of the highlights of the webinar was the live Q&A session. The level of engagement throughout the Q&A reflected just how relevant these changes are for organisations across New Zealand. We received thoughtful questions from employers, HR professionals and business leaders covering a wide range of practical workplace scenarios.
While we weren't able to answer every question during the session, Matthew has kindly provided written responses to those submitted by attendees. The questions cover topics including the high-income threshold, disciplinary processes, contractor arrangements, the proposed Holidays Act reforms and more. Please note, Beyond Recruitment are not lawyers and all questions answered are from the perspective of the legal advisor.
If you'd like to explore these topics further, you can read Matthew's responses in full by clicking the button below.
Please note: The information provided is general guidance only and is not intended to be legal advice for any individual or organisation. Every workplace situation is different. If you require advice specific to your circumstances, we recommend seeking independent legal advice.
My Key Takeaways
Hosting this webinar reinforced just how valuable these conversations are. While employment legislation continues to evolve, the discussion with Matthew highlighted that understanding how these changes apply in practice is just as important as understanding the legislation itself.
For me, three messages stood out.
Firstly, while recent reforms provide employers with greater flexibility in some areas, they don't remove the need for fair employment practices. Good communication, sound decision-making and well-documented processes remain fundamental.
Secondly, now is a good time for organisations to review their employment agreements, contractor arrangements and workplace policies. Even where immediate changes aren't required, understanding what's changing will help businesses prepare with confidence.
Finally, these reforms are only part of an ongoing conversation. As new cases are considered by the Employment Relations Authority and the courts, we'll continue to gain greater clarity around how the legislation is interpreted and applied in practice.
I'd like to thank Matthew Dearing and the team at Edwards Sluiters Employment Lawyers for sharing their expertise and helping make this such an informative session. I'd also like to thank everyone who joined us and contributed thoughtful questions throughout the webinar. The level of engagement highlighted just how important these conversations are for employers across New Zealand.
At Beyond Recruitment, we believe our role extends beyond helping organisations find great people. We also want to share practical insights, connect employers with trusted experts and help businesses stay informed as the world of work continues to evolve. While we don't provide legal advice, we hope sessions like this give employers the confidence to ask the right questions and know when to seek specialist guidance.
If you missed the webinar, or would like to revisit the discussion, you can watch the recording below. I also encourage you to explore our Employment Law Webinar Questions & Answers resource, where Matthew has answered many of the questions submitted by attendees.
Watch the Webinar Recording
Listen to the Webinar Audio
View the Presentation Slides