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Global Expansion Guide

New Zealand

Manage and pay your employees easily with BIPO in New Zealand and 170+ other markets. Build your international teams today with our global Employer of Record service!

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Currency

New Zealand Dollar (NZD)

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Language

English, Māori (te reo)

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Capital

Wellington

Employer of Record New Zealand

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in New Zealand

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  • Global Hiring Guide
  • New Zealand

Employer of Record New Zealand

Embark on your business expansion in New Zealand with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the New Zealand market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

A New Zealand individual employment agreement must include the following content:

  • Names of the employer and employee: Clearly identify both parties to the agreement.
  • Description of work duties: Clearly define the employee’s responsibilities.
  • Work location: Specify the employee’s place of work.

  • Working hours agreement: Clearly state the employee’s working hours (may include some or all the following):

    • Number of working hours;
    • Start and finish times;
    • Number of working days per week.

  • Salary and payment method:

    • Must not be lower than the applicable statutory minimum wage;
    • Payment method: If not paid in cash, the specific method of payment must be stated in the agreement.

  • Dispute resolution for employment-related issues:

    • Most personal grievances must be raised within 90 days;
    • Personal grievances related to sexual harassment must be raised within 12 months.
  • Arrangements for public holiday pay: Specify that employees working on public holidays are entitled to 1.5 times their normal hourly rate.
  • Employment protection in the case of business changes: If the business is sold, transferred, or the employee’s work is outsourced, the employee must be provided with employment protection.
  • Other mutually agreed terms: Such as probationary period arrangements, training period arrangements, on-call provisions, etc.
  • Fixed-term employment: If the employment is for a fixed term, this must be stated in the agreement along with the reasonable justification for employing on a fixed-term basis.

Statutory Contributions

Scope of Application: KiwiSaver exemption applies to foreign employees; ACC applies to all employees.

Type of Social Insurance Cap Employee Contribution Employer Contribution
KiwiSaver – 3%/4%/6%/8%/10% 3%
ACC (Work Injury Insurance) 152,790 NZD – Industry-based ACC levy rate + 0.08%

Minimum Wage

Effective Date: 1 April 2025

Type Minimum Wage
Applicable Employees aged 16 and above
Hourly Rate/NZD 23.5 NZD
Weekly Rate/NZD 940 NZD

Public Holidays

Scope of Application: Employees in Private Sectors.

Holiday Name Date
New Year’s Day 1 January 2025
2 January 2025
Waitangi Day 6 February 2025
Good Friday 18 April 2025
Easter Monday 21 April 2025
Anzac Day 25 April 2025
King’s Birthday 2 June 2025
Matariki 20 June 2025
Labour Day 27 October 2025
Christmas Day 25 December 2025
Boxing Day 26 December 2025

Note: If a public holiday falls on a weekend, the next working day must be given as a substitute holiday.

Overtime Compensation: Overtime must be paid at 150% of the regular hourly rate. If both parties agree, time off in lieu may be provided instead of overtime pay.

Exemptions from Overtime (on public holidays) Compensation: None.

Working Hours

Standard Working Hours

Per Day Per Week
By agreed arrangement 40 hours, unless otherwise agreed by both parties

Weekly Rest Days

Where the maximum number of hours (exclusive of overtime) fixed by an employment agreement to be worked by any worker in any week is not more than 40, the parties to the agreement must endeavour to fix the daily working hours so that those hours are worked on not more than 5 days of the week.

Overtime Compensation and Exemption

Employee work hours are agreed to in an employment agreement and are generally the only hours that they need to be at work.

If the specific hours are not put into the employment agreement, then an accurate and timely written record will need to be kept of exactly what hours the employee has worked.

Leave

Annual Leave

  • Type of Employer: Single employer
  • Eligibility: Continuous employment for 12 months
  • Length: 4 weeks of working days
  • Entitlement during Leave: Paid at 100% of the employee’s ordinary weekly/average weekly pay by the employer
  • Pro-rata Leave on Termination: Employees are entitled to payment for any unused annual leave upon termination of the employment agreement

Sick Leave

  • Eligibility: Continuous employment for 6 months and provision of a valid medical certificate
  • Length: 10 days per year, cumulative up to a maximum of 20 days
  • Pay: Paid at 100% of the employee’s daily/average pay by the employer

Primary Carer Leave (Parental Leave)

Eligibility and length

  • In New Zealand, primary carer leave applies mainly to:

    • Employees who are pregnant, have given birth, or are surrogates;
    • Eligible partners/spouses of the birth parent who are the main carer of the child;
    • Employees who permanently care for a child under 6 years old.

  • If the employee meets the continuous service requirement within the relevant period:

    • Continuous employment of 6 months and at least 10 hours per week: 26 weeks leave
    • Continuous employment of 12 months and at least 10 hours per week: 26 weeks leave, extendable up to 52 weeks

Pay during Leave

  • Paid by the Inland Revenue Department at the employee’s ordinary weekly/average weekly pay (up to 26 weeks), capped at NZ$788.66 per week

Other Leave Types

  • Bereavement Leave: Eligible employees may receive 3 days of paid leave upon the death of an immediate family member, miscarriage, or stillbirth. Employers may grant 1 day of paid leave for other family bereavements.
  • Partner/Support Parental Leave: Employees with 6/12 months of continuous service whose partner/spouse is the primary carer of a child under 6 can receive 1 or 2 weeks of unpaid leave.
  • Domestic Violence Leave: Eligible employees affected by domestic violence may receive 10 days of paid leave.
  • Jury Service Leave: Employees summoned for jury duty are entitled to jury service leave.
  • Employment Relations Education Leave: Eligible union members are entitled to paid leave to attend courses or training, with a minimum of 3 days total, depending on company size.
  • Civic Duty Leave: Employees required to vote or participate in the defense forces may receive leave according to the situation.

Termination and Compensation

New Zealand law does not prescribe a statutory notice period or severance compensation. If the employment agreement does not specify a notice period, a fair and reasonable period must be determined based on factors such as the employee’s length of service, the nature of the work, the time required to find a replacement, and established practice. In most cases, giving advance notice of 2 to 4 weeks is considered fair and reasonable.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with New Zealand’s regulations.
  • Contributions and Taxes: Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours: We guarantee that your employment practices adhere to New Zealand’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with New Zealand’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in New Zealand

Unlock your growth potential with BIPO’s Employer of Record service in New Zealand. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions (FAQ)

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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