The last election cycle brought significant changes to employment relations. The upcoming election on 7 November will determine whether employers see more change in the same direction, or pushback from a new government against the reforms of the last three years.
The current government has brought major changes to employment law in New Zealand, most notably through the Employment Relations Amendment Act 2026, the repeal of the Fair Pay Agreements Act 2022, and recently the Employment Leave Act 2026, which will repeal the current Holidays Act 2003 in August 2028.
That sweep of changes has marked a clear shift towards a framework that’s more focussed on employers, and explicitly aimed at reducing compliance costs and regulatory burdens for businesses. A new National-led coalition after November is likely to continue pursuing policies that promote flexibility and support the interest of employers.
However, many of these reforms have attracted criticism from opposition parties and unions. A Labour-led government could take employment relations in a different direction, revisiting or reversing the reforms to strengthen employee protections and rebalance workplace rights.
Two hot topics this election: Pay equity and employment leave
Pay equity
The coalition government repealed the Fair Pay Agreements Act 2022 and introduced the Equal Pay Amendment Act 2025, attracting strong criticism from opposition parties and unions.
The Council of Trade Unions (NZCTU) described these changes as “stripping working Kiwis of long-held and fundamental rights”. Workplace Relations Minister Brooke van Velden said they were intended to give businesses greater confidence to hire and invest.
A change of government could see pay equity return to the reform agenda. Labour has previously committed to reversing the 2025 reforms, although it has yet to confirm its current position on this. The Green Party and Te Pāti Māori have also strongly opposed the changes to pay equity in the past, with the Greens’ 2026 policy platform explicitly supporting stronger pay equity measures.
Employment leave and holidays
The Employment Leave Act was passed recently, starting a two-year transition until the repeal of the current Holidays Act and the start of a new holidays and leave regime in August 2028. This has attracted strong criticism from Labour, who says the changes come at the expense of working people.
In particular, Labour has raised concerns about the introduction of a standard 12.5% Leave Compensation Payment on hours worked. A new Labour-led government could revisit or amend aspects of the legislation as part of a broader review of employment leave.
See our other article on the new Employment Leave Act.
Other policy initiatives to watch out for:
Apprenticeships and parental leave
Alongside the wider debates over employment law reform, Labour and National have each announced a new policy that would affect employers and workers.
Support for apprentices: Labour’s proposal
Labour proposes to expand the Apprenticeship Boost scheme to encourage more people into vocational training.
Under Labour’s policy, employer support payments of $500 per month would be extended from one year to two years, from 1 July 2028.
The policy would also broaden eligibility under the Apprenticeship Boost scheme to include road construction, water and sanitary engineering, personal services, sales and marketing, and sport and recreation.
Labour would also introduce a $1,000 toolbox grant from 1 July 2027, which apprentices can use for tools, uniforms, and course materials.
Parental leave: National’s proposal
National has proposed increasing paid parental leave from 26 to 30 weeks by 2029, with a long-term goal of extending it to 40 weeks. National has also proposed allowing two parents to take paid parental leave at the same time or in overlapping periods. The intention is to allow parents more flexibility in how leave is shared.