The key changes
- $200,000 income threshold. Employees on a base salary over $200,000 a year can't bring an unjustified dismissal claim unless their agreement opts back in. Bonuses and other benefits don't count towards the threshold. Existing agreements had a 12-month transition. Discrimination and harassment claims are not affected.
- Process slips alone aren't enough. A minor procedural defect no longer makes a dismissal or disadvantage unjustified on its own. It has to have resulted in you being treated unfairly.
- Your own conduct matters more. If you contributed to the situation, you can't get reinstatement or compensation for hurt and humiliation, and lost wages may be reduced. If serious misconduct contributed, you can't get any remedies.
- Trial periods. If you're dismissed under a valid 90-day trial period, you can't bring an unjustified dismissal or disadvantage grievance about it. The trial clause still has to meet strict legal requirements.
- Contractor "gateway test". Some workers who meet a new set of criteria are treated as contractors and can't later claim to be employees.
What hasn't changed
- The 90-day deadline to raise a personal grievance (12 months for sexual harassment).
- Your right to challenge a dismissal with no genuine reason, or where you weren't given a fair chance to respond.
- Claims for discrimination, harassment, unpaid wages and holiday pay.
- Free MBIE mediation, and your right to an advocate.
What this means for you
The changes make it more important to get advice early and to frame your claim properly from the start. A claim that would once have rested on a process technicality now has to show real unfairness. That's exactly what we assess in your free consultation.
Common questions
Do the 2026 changes affect my claim if I was dismissed before 21 February 2026?
It depends on the change and your circumstances. Some rules have transition arrangements. Call us and we'll check your dates.
I earn over $200,000. Do I have any options?
Yes. Check whether your agreement opts back in to unjustified dismissal protection. Discrimination, harassment and some other claims are still available.
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General information only, not legal advice. Summary based on the Employment Relations Amendment Act 2026.