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Privacy law update: New employer obligation now in force

Today marks the start of a key change to New Zealand’s privacy law that employers should not overlook.

From 1 May 2026, Information Privacy Principle 3A (IPP3A) under the Privacy Amendment Act 2025 is now in force. This new requirement applies when personal information is collected indirectly, that is, from a source other than the individual concerned.

What has changed?

Under IPP3A, employers must take reasonable steps to notify individuals when their personal information is collected indirectly. In most cases, individuals must be told:

  • That their personal information has been collected

  • Why it was collected

  • Who holds the information

The change is designed to improve transparency and help individuals better understand how their personal information is being used.

Why this matters for employers

Many common recruitment and employment practices involve indirect collection of personal information, including:

  • Referee reports

  • Recruitment agencies

  • Background or pre‑employment checks

  • Information obtained from third‑party providers

While there are some exceptions, IPP3A will apply in many everyday employment scenarios.

What employers should do now

If you collect personal information about employees or candidates from anyone other than the individual themselves, now is the time to:

  1. Review and update privacy statements

  2. Check recruitment and onboarding processes

  3. Ensure HR practices reflect the new notification obligation

Taking steps now will help minimise privacy risk and ensure compliance with the current law.

If you’re unsure whether your current practices are compliant, now is a good time to check. Contact our team for tailored advice for your organisation.