Another shift in the dial?

Chapman Tripp's perspective

By Marie Wisker, Partner, Chapman Tripp

Because workplace law is a key source of differentiation between National and Labour, it is also hostage to changes in government.

One of the Coalition Government’s first priorities on taking the Treasury benches in 2023 was to repeal the Fair Pay Agreements Act, effective 20 December that year. Should the voters put Labour back in charge this election, expect some form of multi-employer, union-led collective bargaining to be restored and expect this to be fairly high on the new Government’s agenda.

But under ACT’s Brooke van Velden, the Workplace Relations and Safety portfolio has been a high-activity area over the last three years, the cumulative effect of which has been to move the dial sharply toward deregulation. The three big Acts were the Employment Leave Act 2026, to replace the unlamented Holidays Act 2003, the Health and Safety Amendment Act 2026, and the Employment Relations Amendment Act 2026.

BusinessNZ’s survey of its members shows different levels of support. In particular:

• 41.3% of respondents considered the Employment Leave Act would have a net positive or neutral effect on their business, while
• only 25.7% thought the health and safety reforms would be net positive.

We expect that a Labour-led Government would amend, rather than scrap, the Employment Leave Act as the problems with the previous regime were severe and the reform process to arrive at the new Act was tortuous.

Labour’s strongest objection to the Bill, according to its minority report, is that it ties annual leave and sick leave to standard hours only, rather than all hours worked with the effect that “workers can do the same job for the same employer and receive different leave outcomes depending on how their hours are classified”.

It is possible that the Health and Safety Amendment Act might be wound back even under a National-led Government, depending on how much (or how little) leverage ACT has. The select committee had recommended a commencement date of 1 November, but this was deferred to 1 April 2027 through a late amendment under urgency from the floor of the House.

Deloitte's perspective

Protecting the apprenticeship of work

By Lauren Foster, Partner, Deloitte

AI is changing what work looks like and how it gets done. It’s putting entry level roles at risk, where people develop professional habits, judgement, and practical experience. These changes, combined with early career talent heading overseas for opportunities could weaken New Zealand’s future leadership pipeline.

BusinessNZ survey respondents continue to rank access to skills and talent as New Zealand’s most important employment issue. Technical skills, apprenticeships, literacy and numeracy are leading priorities, alongside support for Apprenticeship Boost. More than a third believe compulsory education is not adequately preparing young people for work.

Rather than trying to predict every skill businesses will need, New Zealand must develop a workforce able to learn and adapt continuously. Protecting the apprenticeship of work and creating clear pathways for people to build new capabilities throughout careers will be essential. Entry-level roles give future managers, specialists and leaders the foundation they need to succeed and help secure the talent pipeline New Zealand will depend on ahead.