The new Gateway Test, introduced on 21 February 2026, is designed to make it easier to determine whether a worker is genuinely an independent contractor rather than an employee. If a working arrangement meets all of the Gateway Test criteria, the worker will be recognised as a contractor. If it doesn’t, the existing common law tests will still apply.
The change aims to provide greater certainty for businesses, but it’s important to remember that the law is not retrospective. If a contractor arrangement started before 21 February 2026, different rules may apply depending on the period being considered.
For arrangements that began before this date:
- The common law test applies before 21 February 2026.
- Both the Gateway Test and common law test may apply from 21 February 2026 onwards.
To satisfy the Gateway Test, a contractor arrangement must meet all of the following requirements:
- There is a written agreement stating the worker is an independent contractor.
- The worker is free to perform work for other businesses.
- The worker either sets their own availability and is not required to work specific days, times or minimum hours, or has the ability to subcontract the work.
- The arrangement cannot be terminated simply because the worker declines additional work beyond what was originally agreed.
- The worker had a reasonable opportunity to obtain independent advice before entering into the agreement.
While the Gateway Test offers a clearer pathway, businesses should still review their contractor arrangements to ensure they reflect genuine independence and align with the new requirements. Small changes to agreements and working practices now could help avoid disputes later and claims for unpaid employee entitlements such as leave, KiwiSaver contributions and PAYE obligations.
If you’re unsure whether your workers are correctly classified, we’re here to help.
Need advice? Get in touch with the YHPJ team for practical guidance tailored to your business.
For more information, see Employment New Zealand’s guidance on Employee or Contractor Status.
