Preparing for Contractor Law Changes in 2025 - What You Need to Know.

As 2025 approaches, businesses in the transport and logistics industry are facing a critical shift—new contractor laws that will redefine how workers are classified. Is your business ready for these changes?

The New Zealand Government has announced further details about how it intends to clarify whether a worker is a contractor or an employee. Draft legislation will be introduced in 2025, and these changes will amend existing laws by introducing a “gateway test.” This test outlines four criteria that, if met, will classify a worker as a contractor at law, preventing any legal challenges to their status. 

These changes will affect businesses across various industries, particularly transport and logistics, where engaging contractors is a key operational strategy. In this blog, we’ll break down the key changes in the law and explain how Road Ninja is here to help you navigate this shifting legal landscape with ease and confidence.

The 2025 Legislative Changes: What You Need to Know

• A written agreement must clearly define the worker as an independent contractor.
• The business cannot restrict the contractor from working for other companies, including competitors.
• The business cannot require the contractor to be available at specific times or for a minimum number of hours; OR the contractor has the option to subcontract the work.
• The business cannot terminate the contract if the contractor declines additional tasks or engagements.

If a worker meets the Contractor Criteria, they cannot challenge their legal status as a contractor in court. However, if the worker does not meet the Contractor Criteria, the existing test under current legislation will apply. This allows workers to dispute their status by claiming they should be classified as an employee rather than a contractor.

If the worker does not meet each of the Contractor Criteria, the existing test under the Employment Relations Act (ERA) applies. This test, outlined in Section 6, requires the Employment Relations Authority or Employment Court to examine the actual nature of the working relationship between the worker and the business to determine if the worker qualifies as an employee.

These proposed amendments form part of the Coalition Government’s Q3 Action Plan and are expected to have a significant impact on how businesses engage with contractors moving forward. For more detailed insights into the legislative changes, see the Bell Gully report.

What These Changes Mean for the Transport and Logistics Industry

For transport companies, these changes will provide greater certainty around how to engage contractors, reducing the legal and financial risks associated with worker misclassification. But these reforms also require businesses to take a proactive stance in how they structure their contracts and agreements.

Why Compliance Will Be Critical

Non-compliance with the new criteria can expose businesses to costly legal challenges and potential reputational damage. If a worker is found to be an employee rather than a contractor, businesses may face financial liabilities, including back pay for minimum wage, holiday entitlements, and other employee benefits such as KiwiSaver contributions.

For an industry that already faces numerous operational challenges—ranging from driver shortages to the increasing complexity of compliance—these new regulations add another layer of legal oversight that transport businesses cannot afford to ignore.

Road Ninja understands these challenges, which is why we’ve taken steps to ensure our platform is not only compliant with the upcoming legislation but is designed to make managing contractor relationships easier, more transparent, and legally robust.

What’s Next for Your Business?

The clearer guidelines around contractor status will be a relief for many businesses. However, some key details still need to be resolved to prevent further uncertainty.

Once the draft legislation is introduced in 2025, and if passed, businesses will need to reassess how they engage contractors. This includes evaluating whether existing contractor relationships meet the Contractor Criteria and determining the steps necessary to bring those relationships into compliance.

Road Ninja: Your Partner in Compliance

Road Ninja’s Digital Contractor Agreement feature is designed to align with these upcoming changes, making compliance easier and more efficient. Our platform ensures that every contractor agreement is built on a foundation of legal certainty and operational transparency.

Key benefits of Road Ninja’s Digital Contractor Agreement:

• Compliance: Our agreements are developed with legal experts, ensuring alignment with both current and upcoming legislation.
• Customisable terms: Tailor agreements to specific jobs with additional terms, while maintaining legal integrity, ensuring each contract meets the needs of both the company and the driver.
• Transparency: Clear terms to reduce misunderstandings, both companies and drivers have full visibility into the agreement.
• Secure record-keeping: Each accepted agreement is securely stored and easily accessible, providing a verifiable record if disputes arise.

Don’t Wait—Start Preparing for 2025 Now

Time is running out. The 2025 contractor law changes will be here before you know it. Road Ninja is your solution to staying compliant and managing contractors with zero hassle.

Don’t risk falling behind— contact us today to see how our platform will keep you ahead of these changes and ensure your business stays protected.