Employment Relations Act Changes (21 Feb 2026): What Employers Should Update
A practical employer summary of the 21 February 2026 changes and what to update in agreements, contractor arrangements, and internal processes.
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We help Hawke's Bay employers structure agreements, payroll, investigations, and restructures that are defensible if disputed. Guiding Hawke's Bay employers since 1874 — Erick Smith brings 40+ years of commercial law experience to every employment matter.
Guiding Hawke's Bay employers since 1874.
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Meet the team
Written by
Erick Smith
Consultant
Reviewed by
Carlile Dowling Lawyers
24 February 2026
General information only — not legal advice.
Erick advises Hawke's Bay employers across the full employment lifecycle — hiring, pay compliance, performance, restructures, and grievances — drawing on more than 40 years of NZ employment-law experience.
A rushed hire, a payroll shortcut, or an undocumented conversation can become the issue that drives a grievance, review, or challenge.
We draft agreements that match the actual role. Fixed-term, casual, or permanent, the wording matters before day one.
We review minimum wage, deductions, allowances, and record-keeping. Problems caught early cost less to fix.
We assess whether the relationship is truly a contractor arrangement and tighten the documentation before a challenge arrives.
We guide you through the meetings, letters, and investigation steps so the process holds up under scrutiny.
We help with business reasons, consultation, selection, and redeployment so the process is commercially sensible and fair.
We provide early risk triage, mediation strategy, and settlement documentation that lets the business move forward cleanly.
For Hawke's Bay employers, the real cost sits in leadership time, remediation, hiring drag, and operational slowdown. Back-pay, penalties, and the cost of fixing a flawed process add up quickly — and the disruption to the business compounds the problem.
Leaders get pulled off the floor, away from clients, and out of the work that keeps the business running.
Back-pay, penalties, remediation, and do-over costs add up quickly.
In Hawke's Bay, poor process travels quickly. It affects staff confidence and hiring momentum.
One unresolved issue can stall growth, succession planning, and operational decisions.
Discuss it with us before sending formal letters or making final decisions. Early advice changes the outcome.
Get Advice NowWe draft employment agreements tailored to the actual role. Fixed-term, casual, senior hire, or standard permanent. We also build policy suites that match how the business really operates.
We review your payroll, deductions, leave calculations, and record-keeping. Where there are gaps, we help you fix them before a complaint forces the review.
We guide disciplinary, performance, and misconduct processes. The order of meetings, letters, and investigation steps decides whether the process is defensible.
We advise on business reasons, consultation, selection, and redeployment. The process needs to be commercially sensible and procedurally fair.
We represent employers in mediation, the Employment Relations Authority, and the Employment Court. We also prepare settlement documentation and exit plans.
We understand the industries that drive our region and the specific employment issues they create.
Discuss your situationFixed-term agreements, accommodation deductions, minimum wage compliance, and managing large seasonal teams with clear documentation.
Contractor classification, subcontractor agreements, health and safety obligations, and managing multi-site teams.
Casual agreements, rostering obligations, trial period management, and handling high-turnover teams.
Senior hire agreements, restraint clauses, performance management for specialist roles, and governance-level exits.
A practical employer summary of the 21 February 2026 changes and what to update in agreements, contractor arrangements, and internal processes.
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Read articlePractical employment advice from an experienced commercial lawyer who understands Hawke's Bay workplaces.
Yes. New Zealand employment law requires written employment agreements and proper record-keeping. Even when the relationship is straightforward, the agreement becomes the reference point when a problem later needs to be assessed. We draft agreements tailored to the actual role — talk to us.
No. Labels help, but the legal question looks at the real nature of the relationship. Documentation, control, integration into the business, and the newer gateway test all matter. Unsure about your arrangements? Ask us to review the classification.
Usually no. Underpayments and leave errors tend to widen over time, especially if the underlying setting stays in the payroll system. Early triage helps stop the issue getting bigger and improves the chances of a clean remediation plan.
Only if the employment agreement or collective agreement provides for it. But even when no compensation is payable, the business still needs a genuine reason, a fair consultation process, and documented decision-making.
Most personal grievances must be raised within 90 days, although sexual harassment grievances have a longer period. The time limit matters, but the first steps the employer takes often shape the practical outcome long before that deadline expires.
A valid 90-day trial period must be in writing before employment starts, used only for employees who have not previously worked for you, and limited to employers with fewer than 20 employees. Even with a valid trial, the dismissal must be carried out in good faith. Getting the clause and the process right both matter. Need to check your agreement and process? Talk to us before you act.
Yes, but only with clear written authorisation and subject to rules on how the deduction is structured. Accommodation arrangements must still leave the employee receiving at least the minimum wage for hours worked. A recent Hawke's Bay Employment Court case highlights the risk of informal arrangements in seasonal industries. Get advice before setting up or changing accommodation deductions.
A fair process reduces risk but does not guarantee immunity. Employees can still raise a grievance — and the Employment Relations Authority or Employment Court will assess the substance as well as the process. Where an employee's own conduct contributed to the situation, this can now affect how remedies are assessed. Early legal triage after receiving a grievance notice gives you the best options.
Yes. The minimum wage in New Zealand is reviewed annually (typically from 1 April). If any employee's agreed rate falls below the new minimum, you must increase it. Your employment agreement does not need updating unless you want to record the new rate — but your payroll does. Employers who miss this are liable for back-pay and penalties. Want a payroll compliance check? Contact us.
Eight practical steps for Hawke's Bay employers dealing with hiring, payroll, leave, contractors, investigations, restructures, and grievances.
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