By The Supreme Court confirmed Uber drivers were employees. Parliament rewrote the rules. Now, gig workers across Aotearoa face the most consequential legal battle over platform work rights in the country’s history.
In November 2025, New Zealand’s Supreme Court delivered what many legal experts called a watershed moment for gig economy workers’ rights. Five justices unanimously ruled that four Uber drivers were employees, not independent contractors, under the Employment Relations Act 2000. It was the final word from the country’s highest court after years of hard-fought litigation. For thousands of platform workers, it felt like justice.
It lasted roughly three months. On 20 February 2026, the Employment Relations Amendment Act 2026 received Royal Assent and came into force the very next day, introducing a sweeping new “gateway test” that effectively allowed companies like Uber to reclassify workers as contractors, legally insulating platforms from the implications of the Supreme Court’s ruling. Critics quickly dubbed it the “Uber law.”
“This whole Bill is an unprecedented attack on workers’ rights , it protects the right of foreign companies to exploit New Zealand workers and deny them the rights the Supreme Court confirmed they’re entitled to.” – Anita Rosentreter, Deputy Secretary, Workers First Union
What the Supreme Court Actually Decided on Gig Economy Workers’ Rights in New Zealand
The case, Rasier Operations BV v E Tu Incorporated, had worked its way through the Employment Court and Court of Appeal before reaching the Supreme Court. At each stage, judges found in favour of the drivers, applying the long-established “real nature of the relationship” test under section 6 of the Employment Relations Act 2000.
Courts dismissed Uber’s central argument that drivers merely “rent” the app and have no direct employment relationship with the company. The Court of Appeal described this framing as “just window dressing.” The Supreme Court went further, emphasising that the substance of the working arrangement , not the contractual labels , determines employment status.
The ruling gave Uber drivers access to minimum wage protections, sick leave, KiwiSaver contributions, and the right to raise personal grievances. More importantly, it signalled that thousands of other gig workers , delivery riders, freelance platform workers, and app-based service providers , could make similar claims.
The Gateway Test: A Five-Factor Checklist That Changed Everything
The Employment Relations Amendment Act 2026 replaced the “real nature” test with a new five-factor statutory gateway. Under the new framework, if all of the following conditions are met, a worker is automatically classified as a contractor and cannot challenge that status in court:
The Five-Factor Contractor Gateway Test (2026)
- There is a written agreement stating the worker is an independent contractor (or is not an employee).
- The worker can subcontract or delegate the work to another person.
- The worker is not required to be available at particular times or for a minimum number of hours.
- The worker can provide services to other businesses while working for the platform.
- The worker sets or negotiates their own rates of pay or fees.
Critics argue that many of these conditions can be satisfied on paper while the practical reality of the work remains one of dependency and control. Gig platforms routinely include delegation clauses in contracts , even when subcontracting is operationally impossible , precisely to satisfy tests like these.
Key Timeline: From Courtroom Win to Legislative Override
2022 – 2024: Employment Court & Court of Appeal Rule for Drivers
NZ courts repeatedly found Uber drivers were employees under the real nature test. Uber appealed each decision all the way up the judicial hierarchy.
November 2025: Supreme Court Unanimously Upholds Employee Status
All five justices backed the drivers in Rasier Operations BV v E Tu Inc. Uber’s final appeal failed. Unions celebrated a historic win for platform worker rights across Aotearoa.
December 2025: Employment Relations Amendment Bill Advances
The Education and Workforce Select Committee recommended the Bill pass, with a revised gateway test and a raised high-income threshold of NZD $200,000.
20 February 2026: Employment Relations Amendment Act 2026 Passes
The Act received Royal Assent on 20 February and came into force the next day , one of the fastest implementations of major employment law in recent New Zealand history.
Ongoing – 2026: Legal Challenges & Litigation Expected
Workers’ unions and legal advocates have signalled court challenges. The NZCTU warns of widespread misclassification. Law firms advise businesses to audit contractor arrangements urgently.
What It Means for Gig Workers Right Now
The new law draws a stark line between past and future. Gig workers who filed claims before the Act came into force may still access wage arrears and backpay for periods when they were misclassified as contractors under the old law. However, going forward, workers whose arrangements satisfy the gateway test cannot challenge their contractor status , regardless of how the working relationship actually operates.
This means platform workers lose access to:
Rights Gig Workers May Lose Under Gateway Test Classification
- Minimum wage protections (the adult minimum wage rose to NZD $23.95/hour from April 2026)
- Paid sick leave and statutory holidays
- KiwiSaver employer contributions
- The right to raise a personal grievance for unfair treatment
- ACC cover under the employer pathway
- Protection against unjustified dismissal
The NZCTU (New Zealand Council of Trade Unions) has called the legislation “one of the most anti-worker pieces of law in recent decades.” E tu national secretary Rachel Mackintosh echoed that view, warning the reforms strip away protections workers have relied on for over two decades.
The Government’s Position
Workplace Relations and Safety Minister Brooke van Velden has consistently maintained that the reforms modernise employment law “for a new era” and back businesses to hire with greater confidence. She denied the legislation was a direct response to the Uber ruling, describing amendments to the transitional provisions as correcting a “minor oversight.”
The Government argues the gateway test provides clarity and reduces the costly litigation that the “real nature” test spawned. Employer groups have broadly welcomed the changes, citing the need for flexibility in the evolving labour market.
“The 2026 reforms represent a bold attempt to modernise New Zealand’s employment law framework. But with greater flexibility comes greater complexity.” – MinterEllisonRuddWatts, Employment Law Analysis, February 2026
What Comes Next: Litigation, Politics, and Uncertainty
Legal experts across the spectrum agree on one thing: this is not over. The Employment Relations Amendment Act 2026 will face sustained court challenges as unions and individual workers test the boundaries of the gateway test. Grey areas around what constitutes genuine contracting arrangements , versus cosmetic contract language designed to satisfy the test , will be litigated for years.
There is also a political dimension. Provisions like the contractor gateway test are likely to become an election issue. Just as the 90-day trial period has been introduced and removed across successive governments, the gateway test could be repealed if the political balance shifts. For platform companies building business models around contractor classification, this uncertainty is significant.
For workers, the practical advice is urgent: if you believe your working arrangement resembles employment , regular hours, platform control, no genuine ability to subcontract , seek legal advice now. Claims relating to pre-February 2026 work may still be viable under the old law, but the window is narrowing.
A Precedent Watched Around the World
New Zealand’s legal battle mirrors struggles playing out globally. Courts in the United Kingdom, Australia, Canada, and across the European Union have grappled with the same fundamental tension: how do modern labour laws apply when work is mediated by an algorithm, and when corporations use contract language to distance themselves from the human beings doing their work?
New Zealand’s decision to respond to a pro-worker Supreme Court ruling with legislation that reverses its practical effect is unusual , and it has drawn international attention from labour researchers and employment law practitioners.
What is certain is that the gig economy workers’ rights debate in New Zealand is far from settled. The courts handed workers a victory. Parliament handed it back to employers. The next chapter will be written in litigation, in politics, and on the streets , by the delivery drivers, rideshare workers, and app-based labourers who are still waiting for Aotearoa to decide whether their work deserves full legal protection.