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Employment laws in New Zealand

Understand the employment laws in New Zealand, right from contracts, leaves, working hours, wages, benefits, etc., and how Payoneer Workforce Management can support labor law compliance in New Zealand.

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The employment laws in New Zealand are primarily governed by the Employment Relations Act 2000. The laws cover a wide range of areas, including minimum wage, employment contracts and agreements, health and safety, working hours, employee rights in New Zealand, leave and other benefits, termination, and more. 

The labour laws in New Zealand are designed to ensure employees and employers have a fair, safe, and productive workplace. Labor law compliance in New Zealand is a major area of concern for employers in the country. 

Consider this a guide to employment laws in New Zealand. Also, explore how Payoneer Workforce Management, an EOR service, helps with labor law compliance, payroll management, taxation, and more in New Zealand and Australia. 

Key employment laws in New Zealand

The Employment Relations Act 2000 is the main employment law governing employment relationships in the country. 

Apart from this, there are other employment laws in New Zealand as well that ensure equal pay, health and safety at work, proper leave entitlements, and more. Let us take a look at these acts, regulations, and labor laws in New Zealand:

  • Holidays Act 2003: Employees in New Zealand are entitled to various leaves during employment, including annual leave, sick leave, public holidays, maternity and paternity leave, etc. This is the primary legislation governing the leaves for employees in the country. 
  • Parental Leave and Employment Protection Act 1987: This employment act protects minimal entitlements, such as job-protected leave, primary carer leave, etc. 
  • Health and Safety at Work Act 2015: Through this act, employees can be assured of remaining healthy and safe at the workplace. 
  • Equal Pay Act 1972: It is clear from the name that this act makes equal pay for men and women mandatory for doing the same kind of job. Discrimination of any kind is not tolerated. 

Contract employment laws in New Zealand

The primary Employment Relations Act 2000 covers all the details that go into the employment contracts in New Zealand. The contracts must be in written format and cover all the essential components and contract term details. 

Types of contract

Employment contracts in New Zealand are of two types: 

  • Permanent or full-time position: In this employment contract, there is no end date. The position is permanent and open-ended with complete employee entitlements. 
  • Fixed-term contract: These employment contracts are usually for a fixed time period, with a particular end date. If required, these contracts can be renewed. 

Essential contract terms

Employment contracts in New Zealand must be in writing. Here are some of the essential contract terms and components that must be present in the contract:

  • Employee and employer’s name
  • Employee’s job role and responsibilities
  • Probation period
  • Working hours and overtime 
  • Wages of the employee
  • Leave entitlements, benefits, and other allowances
  • Notice period
  • Termination 

Minimum wage in New Zealand

Employees get their wages/salary in New Zealand in New Zealand Dollar (NZD). 

In 2024, the minimum wage in New Zealand was $23.15 per hour. The amount has been revised to $23.50 per hour from 1st April, 2025. 

Working hours in New Zealand

The working hours in New Zealand for employees are not more than 8 hours per day. The weekly count is 40 hours per week. 

The Employment Relations Act 2000 also mentions overtime laws in New Zealand. If there is a need, employees have to work overtime to complete a certain task. 

For calculating the overtime pay in New Zealand, you have to know the employee’s regular hourly rate. The pay is often ‘time-and-a-half’ or ‘double time’, and it is paid with the monthly salary. 

Mandatory benefits

If you want to know about the employee rights in New Zealand, you must know about the mandatory benefits that employees are entitled to. Read on to know more. 

Mandatory benefitsDetails
Public health insuranceEmployees are entitled to mandatory public health insurance in New Zealand. 

There is a wide range of services that are covered in this insurance, such as maternity care, doctor visits, prescriptions, disability support services, hospital care, and more. 
Social security benefitsThe funding for social security is mainly through general taxation in New Zealand. 

No individual or employer contributions go into Social Security. 

Here are some of the major components that social security in New Zealand covers:

Veterans’ pension
Social security for seniors
Employment assistance
New Zealand Superannuation (NZ Super)
Residential care subsidy
Child and family support
Sick leaveIf an employee falls sick in New Zealand, they are entitled to paid sick leave for 10 days. 

Annual renewal of sick leave is permissible. 
Maternity and paternity leaveBoth maternity and paternity leave in New Zealand are an integral part of the parental leave. 

The period of maternity leave in the country depends on the service tenure of the mother and the partner. 

The primary carer, usually the mother, is entitled to up to 26 weeks of government-funded paid leave. 

The partner is entitled to 1-2 weeks of unpaid leave. The period depends upon the service tenure. 
Annual leave and public holidays Employees in New Zealand are entitled to 4 weeks of annual leave in a year.

However, to be eligible for this leave, employees must have continuous employment with the employer for a minimum of 12 months. 

When it comes to public holidays in New Zealand, employees get 11 public holidays. 

Termination

Termination laws in New Zealand are quite strict. The Employment Relations Act 2000 clearly mentions the termination clauses in the country. Employee termination is only allowed on valid and logical grounds. Employers have to handle termination very carefully, as each termination case is different from the other. 

Employers can be charged with unfair dismissal when the employee is terminated on invalid grounds. The employer can face severe consequences in such cases, including legal hassles and penalties. 

Types of termination scenarios

Here are some of the most common termination scenarios in New Zealand:

  • An employer can terminate an employee due to performance issues, misconduct, theft of office property, absence without leave, etc. 
  • Mutual agreement between the employer and the employee.
  • Employee resignation.
  • Termination during the probation period. 

Notice period in New Zealand

The notice period in New Zealand during the probation period and after that remains the same. 

The standard notice period is 30 days. However, it might change as per the employment agreement. 

Severance payable 

Severance pay in New Zealand is not mandated by the law. 

Many employers find it difficult to navigate the employment laws in New Zealand. They end up compromising with the labor law compliance in New Zealand, causing penalties and other legal complications. 

Payoneer Workforce Management, a trusted EOR service, helps employers navigate the labor laws in New Zealand. Along with this, the EOR service also helps with employee onboarding and termination, payroll management, taxation, leave tracking and management, and more. 

Book a demo today.

Frequently asked questions (FAQs)

Payoneer Workforce Management helps employers understand and navigate the employment laws in New Zealand. The EOR service also helps with labor law compliance in New Zealand to reduce penalties and legal complications for employers when onboarding or paying local employees. 

Yes, the standard trial or probation period in New Zealand is 90 days. However, if the employee has been employed by the employer before, there is no probation period in such a case. 

Under the Health and Safety at Work Act 2015, employers must typically identify and manage workplace risks, provide safe conditions, train staff, and consult workers on health and safety matters regularly. 

Employees in New Zealand must typically have a written employment agreement. It must outline role details, pay, hours, and leave entitlements. Both parties must sign before work begins. 

Employees in New Zealand are entitled to annual leave, sick leave, bereavement leave, parental leave, and public holidays. Entitlements vary based on employment duration and agreement terms under the Holidays Act 2003. 

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