There’s been a significant shift in New Zealand employment law that’s quietly come into force - and it’s something everybody in the construction, consulting, and contracting sectors needs to understand.
On 20 February 2026, the Employment Relations Amendment Act 2026 introduced the Gateway Test - a new legal framework determining whether a contractor is truly an independent contractor or, by law, should be classified as an employee.
🔎 What’s Changed?
Historically, many construction firms, consultants, and professional services businesses in NZ have engaged contractors using templates or older agreements that worked “well enough” under the old rules. But the Gateway Test changes the game:
It doesn’t just look at the contract wording - it assesses the actual working relationship.
If any one of the required criteria isn’t met, the contractor can be reclassified as an employee.
This exposes businesses to potential liability for holiday pay, KiwiSaver contributions, minimum wage compliance, and even personal grievances.
For industries like ours - where project-based work, sub-consultants, and short-term engagements are common - this law could have huge financial and compliance impacts.
📊 Why It Matters to Quantity Surveyors and Clients
At Suckling Stringer Associates, we work with hundreds of contractors, trade partners, and external specialists every year — often on a contractor basis. Here’s why this change matters:
🔧 Contract validity – Agreements drafted even just a few years ago might no longer pass the Gateway Test.
💡 Risk of reclassification – What was legally accepted could now open the door to back-dated claims.
📊 Budget implications – If a contractor is retroactively deemed an employee, the financial impact can go well beyond standard fees.
It’s not just construction businesses that are affected — consultants, project managers, and professional services firms need to take note too.
🧠 What You Should Do Now
Here are three practical steps for industry professionals:
Review Every Contractor Agreement
Don’t assume older contracts are compliant. All agreements should be checked against the Gateway Test criteria.Engage Legal/HR Specialists
Employment law experts can help assess risks and recommend revisions to your contracting templates.Document Working Relationships Clearly
Contract wording is important — but actual day-to-day practice matters more when authorities assess contractor status.
🛠 The Bigger Picture
This law change reflects a broader trend: regulators in NZ are tightening definitions around work relationships and compliance. For construction and professional services — already dealing with rising material costs, tightening margins, and consenting challenges — this adds another layer of complexity.
As contract managers and quantity surveyors, staying ahead of these shifts isn’t just good practice — it protects you and your clients.
If you’d like support reviewing your current contractor frameworks or want to understand how these changes might affect your projects, get in touch with our team at Suckling Stringer Associates.
