The 30 day rule was removed: here’s what it means for employers

If you manage staff in New Zealand, keeping up with compliance is essential to avoid legal risks. The Employment Relations Amendment Act 2026 introduces major changes to hiring practices, specifically by removing the 30-day rule. These updates give you more flexibility when onboarding team members and significantly reduce your administrative workload. 

What was the 30-day rule? 

Previously, if a collective agreement covered a new employee’s role, you had to apply those collective agreement terms for the first 30 days of their employment. You had to follow this rule even if you and the employee wanted to sign an individual employment agreement instead.  

What’s changing?  

Effective 21 February 2026, the government abolished the 30-day rule. You can now negotiate and agree on individual employment terms from day one. This update makes it easier to introduce specific conditions right away, such as 90-day trial periods, provided they are agreed in good faith and utilised in accordance with the law.  

The Act also changes how you interact with unions. You don’t need to automatically share a new employee’s details with the relevant union anymore. 

What are the new obligations for employers? 

When hiring for a role covered by a collective agreement, employers must now complete four clear steps: 

• Inform the employee that a collective agreement covers their work, tell the employee they have the right to join the union, provide the appropriate contact details, and explain that if the employee joins the union, they will be bound by the collective agreement. 

• Provide the employee with a copy of the collective agreement. 

• Notify the union that the employee has started, but only if the employee agrees to share this information. 

• If the employee’s work is covered by more than one collective agreement, the employer must notify the employee of such and must notify the union involved with the collective agreement that covers the largest number of employees doing that work, with the employee’s agreement. 

These changes aim to support the expansion of the 90-day trial period, reduce red tape and compliance costs by allowing parties to agree to a wider range of terms at the start of employment.  

Next steps for businesses 

These legislative updates provide a clear path to simplify your HR processes. It’s important for employers to review their current hiring practices, update their onboarding checklists, and train their management team to ensure total compliance. Adapting to these changes early protects from legal risks and creates a smoother experience for new hires.  

The removal of the 30-day rule marks a significant step toward greater flexibility in New Zealand’s employment landscape. By understanding and acting on these changes, employers can streamline their hiring process, ensure ongoing compliance, and foster a smoother start for new team members. Staying proactive with these updates helps protect your business and supports positive employment relationships moving forward.