The government has set up the working group that will look at ways to restore workers' rights in the film industry and says key players have agreed to collaborate.

It wants changes because of the so-called "Hobbit Law" passed by the previous government in 2010 to ensure Sir Peter Jackson's Lord of the Rings trilogy was produced in New Zealand.

That law meant production workers were treated as independent contractors and did not have the right to bargain collectively.

It was severely criticised by opposition parties at the time.

Workplace Relations Minister Iain Lees-Galloway says it denied production workers rights enjoyed by others and he wants to make sure everyone gets a fair go in future.

"New Zealand must have a highly skilled and innovative economy that provides well-paid, decent jobs and delivers economic growth and productivity," he said on Monday.

Former political journalist and now lawyer Linda Clark has been appointed facilitator for the working group which includes 13 film industry, business and union representatives.

Mr Lees-Galloway says the industry has agreed to work collaboratively to find "a durable solution" that will restore collective bargaining without necessarily changing the status of those who want to continue as independent contractors.

The group will report to the government by mid-year.