Brooke van Velden, workplace relations and safety minister, calls this ‘a key milestone’
Brooke van Velden, workplace relations and safety minister, announced the introduction of the Employment Relations Amendment Bill, which broadly seeks to boost labour market flexibility and increase and improve workers’ opportunities, to Parliament on 17 June 2025.
In a news release from the government, van Velden called the bill’s introduction “a key milestone.” With the contemplated changes, the government aims to actualize numerous ACT–National Coalition Agreement commitments.
According to van Velden, through amendments to the Employment Relations Act 2000, the government seeks to simplify the personal grievances process and help New Zealand businesses grow, innovate their business models, and employ or contract with confidence and certainty.
Specifically, the government wants to offer contracting parties, namely workers and businesses, more certainty about the nature of the work involved once they have agreed to a contracting arrangement, van Velden explained.
“The new gateway test introduced in this Bill will provide greater clarity for businesses and workers around the distinction between employment and contracting arrangements,” van Velden said in the news release.
Next, the amendment bill will remove the “30-day rule.” This change aims to give employers and employees the freedom to negotiate mutually beneficial terms and conditions from the commencement of employment, stated the government’s news release.
“I am committed to building business confidence, ensuring a strong economy that will lift wages, create opportunities, and help Kiwi workers get ahead,” van Velden said in the news release.
The amendment bill introduces two major changes to the personal grievances process, according to the government’s news release.
First, van Velden said the amendment bill clarifies that an employee whose behaviour constitutes serious misconduct cannot avail of remedies. van Velden explained that this change seeks to refrain from rewarding bad behaviour and reduce business costs.
According to van Velden, under the current scheme, the Employment Relations Authority or Employment Court can grant remedies, including reinstatement into one’s former position and compensation for hurt and humiliation, to an employee prevailing in a personal grievance.
Second, the government shared that the amendment bill imposes an income threshold of $180,000 for an employee pursuing a personal grievance alleging unjustified dismissal. The government’s news release noted that high-income employees often significantly impact organisational performance.
The government’s news release added that the change aims to enable businesses to ensure they have the right set of skills and abilities to deftly adapt to shifting conditions, decrease the risk of an expensive and disruptive dismissal process for employers, and benefit employees seeking to climb the career ladder.
The government stressed that interested groups and members of the public can make submissions regarding the amendment bill once it has reached the Select Committee, according to the government’s news release.
