Employment Relations Amendment Bill

New employment law changes are here – what you need to know:

The Employment Relations Amendment Bill 2025 has passed its third reading in Parliament and will come into force the day after it receives Royal Assent. Below is a summary of the key changes.

Independent Contractors: The definition of “employee” under the Act has been amended to introduce the concept of a “specified contractor”. Workers who meet certain criteria - including having a written contractor agreement, freedom to work for others, no minimum hour's obligation, and the ability to decline work - will be excluded entirely from the employee protections afforded under the Act.

Personal Grievance Remedies: Where an employee's conduct amounts to serious misconduct and has contributed to the situation giving rise to a personal grievance, the Employment Relations Authority or Court will now have no jurisdiction to award remedies. Where the conduct falls short of serious misconduct but has nonetheless contributed to the grievance, the employee will be precluded from receiving interim reinstatement or compensation. In all cases where contributing behaviour is established, any remedies awarded may be reduced by up to 100%.

High Earner Threshold: Employees earning $200,000 or more per annum in total remuneration will no longer be able to bring a personal grievance or file proceedings in relation to their dismissal, including unjustified dismissal and unjustified disadvantage claims. A 12-month transitional protection applies to those already in roles at the time the legislation takes effect.

Collective Agreements: The requirement to apply collective agreement terms to new employees during their first 30 days of employment, and the automatic sharing of new employee information with the union - will no longer apply.

Justification Test: The section 103A justification test has been amended in two respects. First, it will now take into account whether an employee obstructed the employer's process. Second, while the Act previously provided some tolerance for minor procedural defects, even significant procedural failures will no longer render a dismissal unjustifiable where the employee was not actually treated unfairly.

These are significant changes that will affect both employers and employees. If you would like further information or need tailored advice, please get in touch with the team at Norris Ward McKinnon.