According to Variety, the law amends the current labor laws so that any actors hired for The Hobbit will have the status of independent contractors and not employees. According to NZ Minister of Labour Kate Wilkinson, the bill “clarifies what is already widespread industry practice. That actors, crew members and other production personnel in the film industry who sign on as independent contractors are just that, independent contractors. If they sign on as an employee, they are an employee.”
For more, you can also take a look at the report on New Zealand’s 3 news.