Unlocking opportunity: The strategic impact of better workplace law

Monday, 16 February 2026

Catherine Beard is BusinessNZ’s director of advocacy.

OPINION: In the era of the gig economy where we see increased demand and competition in ride sharing, food delivery and more, it’s important that employment law can keep up with new business models. As avenues for work, the gig economy offers new and flexible working opportunities. Recent court cases (supported by the unions) on behalf of four Uber drivers determined that they are full-time employees, due to their individual circumstances. It's a decision which could potentially up-end the whole contracting model, across every business in New Zealand that uses contractors.

While the unions seemingly remain keen to shoehorn all workers into full-time employment, the platform work opportunities that exist now wouldn’t have come about if the platform operators had to shoulder all the costs and commitments associated with full-time employees. The trade-off for platform workers is flexibility - in when and how often they work, how many platforms they work with, and in some cases adding it as a ‘side hustle’ to a full-time job.

So, if we want to keep new enterprise and the ensuing benefits consumers enjoy, we have to make sure the model can continue to work. In that regard, it's been important for the Government to make very clear that a contractor is a contractor, as opposed to a full-time employee. Hopefully, the Government has done enough with this legislation to make it clear to the courts and potential claimants that they can’t keep trying to break the model. New Zealand has too much to lose if they do.

As with anything replicated successfully in other markets, NZ’s economy comes with a caveat - we’re a small, geographically remote market of five million people. If we tie businesses up in unnecessary cost compared the rest of the world, the innovators will go where they feel most welcome. Users of platform work on either side (workers and customers alike), would be worse off if the gig economy collapsed, and New Zealand missed out on all its innovations ahead. The Employment Relations Amendment Bill helps bring employment law back into alignment with the modern workplace.

Another thing the Bill has tidied up is the removal of reward for seriously bad behaviour. It addresses situations where workers dismissed for serious misconduct have up until now been able to receive financial compensation through the personal grievance process.

Most New Zealanders understand that serious wrongdoing at work comes with consequences. Removing automatic financial rewards (for instance penalising the employer for small procedural errors) in these circumstances restores fairness and reinforces accountability. It also supports workplace culture by ensuring high standards of behaviour apply to everyone.

The Bill also bids farewell to the “30-day rule”, which automatically signs a new employee up to a collective agreement (if one exists) for a month, creating an administrative burden for the employer to keep track of. This change gives both employers and employees the freedom to negotiate terms that work for both parties from day one. It’s the kind of reform that respects personal choice, reduces administrative burden, and reflects modern employment practices where people increasingly want arrangements that better suit their circumstances (like working from home).

For many businesses, in particular smaller ones without dedicated HR teams, simplifying compliance makes a real difference. Dealing with less red tape means more time focused on growing your business.

Through our membership, BusinessNZ sees how regulatory settings constantly impact real-world decisions. Whether a business makes the choice to expand, whether someone gets promoted, a startup takes its first big leap, or whether an exporter steps into a new market, these things don’t happen on a whim. Employment law should enable all these decisions, never hold them back.

Looking ahead as the Bill moves through its third reading and into law, we encourage the Government to keep sight of the big picture. New Zealand needs a growing, dynamic economy that supports opportunity for all. That means legislation that balances protection with flexibility, and certainty with choice.

This Bill moves us in the right direction toward a more confident workforce, stronger businesses, and a more resilient economy.