Are you really a contractor? The 2026 gateway test and what to do when the work ends

Why the label matters

Employment NZ says contractors aren't covered by most employment laws or the Employment Relations Act, and can't bring personal grievances. General civil law (your contract) decides most of their rights, though health and safety laws apply to both. If you're wrongly classed as a contractor you can miss annual holidays, sick leave and the KiwiSaver subsidy, and may pay tax and ACC levies you shouldn't.

The gateway test (in force since 21 February 2026)

Employment NZ says you're a contractor if you meet all of these:

1. A written agreement says you're an independent contractor or not an employee.
2. You may work for others, but not at the same time as working for the person you have the arrangement with.
3. You can choose when to work, or subcontract it, subject to any vetting needed (for example qualifications or criminal record checks).
4. You can decline extra offers of work without ending the arrangement.
5. You had a reasonable chance to get independent advice before signing.

Employment NZ says the test is not retrospective: for an arrangement that began before 21 February 2026, only the older test applies to the earlier period, and both tests apply from that date. Law-firm commentary says it doesn't apply where Authority or Court proceedings were already underway. Get advice if your case turns on the timing.

If the gateway test isn't met

The courts look at the real nature of the relationship using four lenses: the parties' intention, control versus independence, integration into the business, and the economic reality. No single factor decides. Signs you may really be an employee include set hours, being told how to do the work, using the company's equipment, uniform or email, and being unable to send someone else.

• Keep your contract, invoices, rosters, and messages showing how work was directed.
• Call Employment NZ on 0800 20 90 20 or use Early Resolution.
• Mediation and then the Employment Relations Authority can decide the question (fees apply to the Authority).

When a contractor's work stops

• Read the contract: notice, termination, payment for completed work and any minimum term.
• Send invoices for everything done. Chase unpaid invoices promptly; the Disputes Tribunal handles small claims.
• You may still be able to get Jobseeker Support; Work and Income assesses your actual income and circumstances. See the Jobseeker guide.
• ACC levies and provisional tax: tell IRD if your income drops so payments can be adjusted.
• GST: if you stop trading, you may need to deregister. Check with IRD.