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New Zealand

How to Hire Workers in New Zealand | Employer of Record (EOR) in New Zealand

Looking to establish your business in New Zealand? Our EOR services provide expert guidance on local employment regulations, ensuring a smooth entry into this market. We handle all aspects of local employment, from managing payroll to navigating complex labor laws, allowing you to focus on your core business. With our support, you can confidently expand your business into New Zealand, knowing that you have a trusted partner managing your international employment needs.

Country Hiring Guides:
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New Zealand, known for its stunning landscapes, vibrant Maori culture, and strong economy, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in New Zealand, offering comprehensive solutions for building your contingent workforce.

With a population of over 5 million people, New Zealand boasts a skilled and educated workforce. From the breathtaking fjords of Milford Sound to the geothermal wonders of Rotorua, the country offers a unique blend of culture and natural beauty.

When expanding your business into New Zealand, compliance with local regulations is crucial. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, minimizing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services tailored to your specific needs. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is dedicated to supporting you.

Partnering with TCWGlobal guarantees a seamless and successful expansion into New Zealand. Our expertise and local knowledge make us the ideal partner for businesses looking to establish a contingent workforce in this dynamic market.
Fixed-Term Contracts

Fixed term contracts are permitted in New Zealand, but require reasonable grounds. If it is later determined that there was not sufficient support for the contract to be fixed, it will be treated as though it was permanent.

Probationary Periods

New Zealand considers a “probationary period” an opportunity to assess a Worker’s skills, but does not lower the threshold for terminating a Worker. The Worker must be adequately assessed/provided an opportunity to improve and the standard termination procedure must be followed. A Worker can claim unfair dismissal. However, it is common in New Zealand to use a "trial period" for new workers, which is considered different than a probationary period. There are limits on its applicability and cannot be longer than 90 days. During that time, a worker may be dismissed for any reason with adequate notice.

Holidays

In addition to the 10 public holidays in New Zealand, each province’s anniversary day is also considered a holiday at the local level.

Vacation

All employees are entitled to 4 weeks of paid annual leave after each 12 months of continuous service, which does not expire. Workers may request to take holidays in advance of their annual entitlement. Workers must be given the opportunity to take at least two of the four weeks’ annual holiday continuously. Any accrued but unused leave is paid out upon termination.

Sick Leave

Workers with at least 6 months of service are entitled to 10 days of sick leave for each 12-month period, which carries over year to year up to a maximum of 20 days unless otherwise agreed.

Working Hours

A Worker’s normal hours must be specified in the employment contract.

Overtime

There is no legal requirement that overtime hours be paid at a premium rate.

Termination

Except in cases of serious misconduct, Workers may only be terminated for a good reason and after following a fair and reasonable process. This includes providing reasonable written notice.

Resignation

Workers must give Client and/or Contractor two weeks’ notice of termination of their employment unless otherwise agreed by the parties.

Unique Country Nuances

Fringe Benefit Tax (FBT)- in New Zealand , any stipends , reimbursements or like issued to an employee for their personal use and benefit are subject to FBT. This includes, but is not limited to meals, entertainment, gym memberships and the line. If Client elects to offer personal stipends or reimbursements to workers, a 100% mark up will be applied to that cost to account for FBT. Upon request, Contractor can provide information on alternative options for providing incentives to New Zealand workers.​

Mandatory Employer Costs

3% of a worker's gross annual earnings must be contributed to a retirement fund.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.