Time to Revisit Your Contractor Arrangements

October 7, 2026

This time last year we considered the Government's proposed "gateway test" for determining whether a worker can properly be engaged as an independent contractor rather than an employee. That test is now part of New Zealand's employment law landscape and applies to contractor arrangements assessed from 21 February 2026. While the change itself is no longer new, it is a good time to revisit existing contractor arrangements and ask whether the paperwork and the reality still align. As noted last year, getting the classification wrong can be costly. A worker found to be an employee may be entitled to employment protections and minimum employment entitlements that do not apply to genuine contractors.

A quick refresher

The gateway test provides that a worker will generally be treated as a contractor if all of the following requirements are met:

there is a written agreement stating they are an independent contractor;
they are free to work for others;
they are not required to be available at specific times, or they have a genuine right to subcontract;
the arrangement does not end solely because they decline additional work; and
they had a reasonable opportunity to obtain independent advice before entering into the arrangement.

Where those requirements are satisfied, the legislation provides greater certainty about contractor status. If one or more requirements are not met, the Employment Relations Authority or Employment Court may still apply the traditional 'real nature of the relationship' test.

Why sporting organisations should review arrangements now

Many contractor arrangements in sport were entered into before the gateway test came into effect. Others may have evolved over time. For example, a coach, selector, trainer, official, facilitator or performance adviser may have started as a contractor but gradually become more integrated into an organisation's operations. In some cases, the written agreement has not kept pace with the practical reality. The question is no longer simply whether your contractor agreement contains the right wording, but whether the arrangement continues to operate in a way that supports contractor status.

Practical contactor questions to consider

Some useful questions to ask include:

Have your contractor templates been updated to reflect the current law?
Were contractors given a reasonable opportunity to obtain independent advice before signing?
Can contractors genuinely work elsewhere?
Do they have the freedom to accept or decline work?
Does the day-to-day relationship match what the agreement says?
Have longstanding contractor arrangements drifted into something that looks more like employment?

Takeaway

The gateway test was designed to provide greater certainty, but it is not a "set and forget" exercise. If your organisation regularly engages coaches, officials, facilitators, consultants or other independent contractors, now is a good opportunity to undertake a quick health check of your agreements and working arrangements. A short review of your contractor arrangements today may help avoid a much more difficult employment status dispute tomorrow.

The following resources are a useful starting point for organisations reviewing contractor arrangements and considering whether existing agreements and working practices remain fit for purpose.