{"id":3298,"date":"2025-06-03T01:13:11","date_gmt":"2025-06-03T01:13:11","guid":{"rendered":"https:\/\/www.hazardco.com\/nz\/?p=3298"},"modified":"2025-06-03T01:13:11","modified_gmt":"2025-06-03T01:13:11","slug":"big-hr-changes-coming-for-contractors-in-nz-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.hazardco.com\/nz\/blog\/big-hr-changes-coming-for-contractors-in-nz-what-you-need-to-know\/","title":{"rendered":"Big HR changes coming for contractors in NZ: What you need to know"},"content":{"rendered":"

There\u2019s major HR changes on the way for how Kiwi businesses manage contractors, and if you run a construction company, are a tradie, or work with subcontractors, this is something you need to pay attention to.<\/span><\/p>\n

What\u2019s changing?<\/b><\/h3>\n

The government is introducing a <\/span>new “contractor certainty test,”<\/b> a legal tool that will help determine whether someone is a <\/span>true independent contractor<\/b> or should legally be considered an <\/span>employee<\/b>.<\/span><\/p>\n

Right now, it’s possible for someone to sign on as a contractor but later challenge that status in court, claiming they were really an employee (and are owed sick leave, holiday pay, etc). That\u2019s led to uncertainty for business owners who thought they were doing the right thing.<\/span><\/p>\n

This new test will make things clearer but also puts more responsibility on employers to get it right from the start.<\/span><\/p>\n

What does the new test mean?<\/b><\/h3>\n

If your independent contractor agreement meets the criteria in the new law (expected later in 2025), the contractor won\u2019t be able to challenge it in court. But if it doesn\u2019t meet the bar, they can and that could open your business up to risk.<\/span><\/p>\n

Until we know more about how the criteria will be applied and when the new law will take effect, the risk of claims remains.<\/span><\/p>\n

However, the Government has signalled that one of the elements of the new test will be that a written independent contractor agreement must be in place.<\/span><\/p>\n

That\u2019s why we are urging businesses to review their contracts now.<\/span><\/p>\n

What you should do now<\/b><\/h3>\n
    \n
  1. Review all contractor agreements<\/b>
    \n<\/b>Make sure they\u2019re up-to-date, clear, and reflect a true contractor relationship, ( and it\u2019s not an employee contract in disguise).<\/span><\/p>\n

    <\/span><\/li>\n

  2. Don\u2019t DIY your contracts<\/b>
    \n<\/b>Vague or copy-paste contracts won\u2019t cut it under the new test. Use reliable, legally backed tools.<\/span><\/p>\n

    <\/span><\/li>\n

  3. Use smart tools like Employr<\/b>
    \n<\/b>Employr lets you build NZ compliant contractor agreements in minutes, tailored to your industry and are legally sound.<\/span>
    \n<\/span>
    \n<\/span>
    \n<\/span> \u201cYou can\u2019t afford a dodgy contract anymore. We help businesses get it right from day one.\u201d \u2013 <\/span>Employr<\/span><\/i><\/li>\n<\/ol>\n

    Who\u2019s affected?<\/b><\/p>\n