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

In addition to New Zealand’s 10 national public holidays, each region observes a provincial anniversary day, which is recognized as a public holiday at the local level. These regional holidays vary by location and are typically based on the founding or settlement dates of each province.

In New Zealand, all workers are entitled to four weeks of paid annual leave after each 12-month period of continuous service. This entitlement does not expire and continues to accrue if unused. Workers may request to take annual leave in advance of their entitlement, subject to company approval. Companies are required to provide workers with the opportunity to take at least two consecutive weeks of annual leave each year. Upon termination of employment, any accrued but unused annual leave must be paid out in full.

In New Zealand, a probationary period allows companies to assess a worker’s performance, but it does not lower the legal threshold for termination. Companies must provide feedback, give the worker a genuine opportunity to improve, and follow a fair and reasonable process, as the worker retains the right to claim unjustified dismissal.

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.

A Worker's working hours must be specified in the employment contract.

In New Zealand, there is no legal requirement to pay overtime hours at a premium rate.

In New Zealand, workers may only be terminated for a valid reason and following a fair and reasonable process, as required under the Employment Relations Act 2000. Except in cases of serious misconduct that may justify summary dismissal, companies must ensure that any termination is substantively justified (such as for poor performance, redundancy, or misconduct) and that the worker is treated procedurally fairly throughout the process. This includes clearly communicating concerns, giving the worker a reasonable opportunity to respond, considering their explanation, and documenting all steps taken. Companies are also required to provide reasonable written notice, as outlined in the employment agreement. Failure to follow proper process can result in a successful claim for unjustified dismissal, even if the reason for termination is otherwise valid.

In New Zealand, workers are generally required to give reasonable written notice when resigning, with the specific notice period typically set out in the employment agreement. If no notice period is stated, the expectation is that workers provide notice in line with what is fair and customary for their role, often ranging from one to four weeks, depending on the position and length of service. Workers are encouraged to submit their resignation in writing, clearly stating their final working day. Companies may choose to accept a shorter notice period or waive it, but they are not obligated to do so unless otherwise agreed.

Fringe Benefit Tax (FBT) applies in New Zealand to any stipends, reimbursements, or non-cash benefits provided to a worker for their personal use or benefit. This includes, but is not limited to, items such as meals, entertainment, gym memberships, and similar perks. If a client chooses to offer personal stipends or reimbursements to workers, a 100% markup will be applied to cover the associated FBT liability. Upon request, the Contractor can advise on alternative methods for offering incentives to workers in New Zealand that may be more tax-efficient or operationally practical.

In New Zealand, the primary statutory obligation is a contribution to the KiwiSaver retirement savings scheme, which is typically 3% of the worker’s gross earnings, provided the worker is enrolled.