Ever wondered why New Zealand is a strong favorite for businesses looking for an Australasian base to expand or start a venture in? One of the easiest locations to setup a business in the world, a supportive community and great work-life balance are some of the few things business owners and employees enjoy in New Zealand.
Looking into expanding your business to New Zealand? We’ve compiled a guide for you that includes employment laws and best practices to take note of.
Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of New Zealand employment laws and regulations, please visit the official governmental websites.
Business Type | Rate |
Self-employed | The tax rate for individuals |
Most companies | 28% |
Māori authorities | 17.5% |
Non-profit organisations registered and incorporated under the Incorporated Societies Act 1908 | 28% |
Unincorporated organisations | The tax rate for individuals |
Trusts and trustees – the initial amount of money put into a trust | 0% |
Trust and trustees – any income the trust earns | 33% |
New Zealand has a range of visas for people looking to live and work there:
Visas that allow you to work in New Zealand | About the Visa |
Care Workforce Work to Residence Visa | Eligible for employees working for an accredited employer with experience in a care workforce role for at least 24 months. |
Skilled Migrant Category Resident Visa | For employees with special skills, experience and qualifications New Zealand requires to grow its economy. Successful applicants are granted a permanent residency for themselves and their family members. |
Straight to Residence Visa | For employees working with an accredited employer, holding a job offer from one and working a role on Tier 1 of the Green List. |
Work to Residence Visa | For employees currently working with an accredited employer and has previously worked in a Tier 2 Green List role for at least 24 months. |
Accredited Employer Work Visa | A temporary visa for employees holding a job offer from an accredited employer and carrying the skills and qualifications for the job in hand. |
Recognised Seasonal Employer Limited Visa | Eligible employees can work in New Zealand for a short time to work in horticulture and viticulture industries. |
Business Visitor Visa | Eligible to applicants for business reasons of up to 3 months in any one year. |
Post Study Work Visa | Applicants who have completed an acceptable qualification in New Zealand are eligible. |
Partner of a New Zealander Work Visa | Eligible applicants include ones with partners are a New Zealand citizen or resident. |
Work Exchange Scheme Work Visa | Allows people to work in New Zealand as part of approved work exchange schemes. |
Supplementary Seasonal Employment Work Visa | People who are already in New Zealand on a student or visitor visa can apply for a work visa to do seasonal work in the horticulture or viticulture industries. |
Employees of Relocating Business Resident Visa | Eligible to employees who are integral to the success of the business they work for and who aren’t eligible for any other kind of resident visa to relocate to New Zealand. |
For the full list of visas available, refer to the ‘Relevant Links’ section below.
Source: Employment New Zealand
Employees are required to ensure that their employees are legally allowed to be employed in New Zealand. You can find more details in the ‘Relevant Links’ section below. In addition, labour laws are relatively employee friendly in New Zealand and it is critical that any disputes, terminations and agreements with employees are well documented.
Under New Zealand’s ‘The Human Rights Act 1993’ employers are not allowed to discriminate against applicants meaning hiring decisions cannot be based on prohibited ground. Questions such as the following are strictly not allowed to be asked by employers:
The Human Rights Act 1993 applies to job advertisements, interviews, job postings, application forms and all other types of employment. The law applies to all employees, before, during and after the person is employed under the employer.
As of 1 April 2023, the minimum wage rates (before tax) are as follows and apply to employees aged 16 years old or over:
Type of minimum wage | Per hour | 8 hour day | 40 hour week | 80 hour fortnight |
Adult | NZ$22.70 | NZ$181.60 | NZ$90 | NZ$1,816 |
Starting-out | NZ$18.16 | NZ$145.28 | NZ$726.40 | NZ$1,452.80 |
Training | NZ$18.16 | NZ$145.28 | NZ$726.40 | NZ$1,452.80 |
Source: Employment New Zealand
Source: Employment New Zealand
New Zealand does not have an official retirement age. However, common practice is to retire at the age of 65 years old when the NZ Super and other pension payments are paid out to retirees.
Employment Relations Authority (ERA); Employment Court; Human Rights Review Tribunal.
Employees are allowed 10 days of sick leave per year. Employees are eligible to get five extra days annually when they reach their next entitlement date.
Mother employed and meets the 12 month criteria for parental leave | Mother employed and meets the 6 month criteria for parental leave | Mother self-employed and meets criteria for parental leave payment | Mother employed and doesn’t meet 12 or 6 month criteria for parental leave | |
Partner employed meets the 12 month criteria for parental leave | Mother entitled to:
| Mother entitled to:
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Partner employed and meets the 6 month criteria for parental leave | Mother entitled to:
| Mother entitled to:
| Mother entitled to:
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Partner meets the self-employed criteria for parental leave payment | Mother entitled to:
| Mother entitled to:
| Mother entitled to:
| Mother entitled to:
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Partner doesn’t the self-employed criteria for parental leave payment | Mother entitled to:
| Mother entitled to:
| Mother entitled to:
| Mother entitled to:
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Employees in New Zealand are entitled to paid rest and unpaid meal breaks which stand at a minimum of 10 minutes and at least 30 minutes respectively.
Break entitlements:
2 hours or more, but not more than 4 hours worked | More than 4 hours, but no more than 6 hours worked | More than 6 hours, but less than 10 hours worked | 10 hours or more, but not more than 12 hours worked | More than 12 hours, but no more than 16 hours worked | More than 14 hours, but no more than 16 hours worked |
1 x 10 minute paid rest break | 1 x 10 minute paid rest break | 1 x 10 minute paid rest break | 1 x 10 minute paid rest break | 1 x 10 minute paid rest break | 1 x 10 minute paid rest break |
1 x 30 minute unpaid meal break | 1 x 30 minute unpaid meal break | 1 x 30 minute unpaid meal break | First 30 minute unpaid meal break | First 30 minute unpaid meal break | |
1 x 10 minute paid rest break | 1 x 10 minute paid rest break | 1 x 10 minute paid rest break | 1 x 10 minute paid rest break | ||
1 x 10 minute paid rest break | 1 x 10 minute paid rest break | 1 x 10 minute paid rest break | |||
Second 30 minute unpaid meal break | Second 30 minute unpaid meal break | ||||
1 x 10 minute paid rest break |
Employees are entitled to public holidays as follows:
Holiday | Date |
---|---|
New Year’s Day | 1 January or 3 January |
Day after New Year’s Day | 2 January |
Waitangi Day | 6 February |
Good Friday | 7 April |
Easter Monday | 10 April |
ANZAC Day | 25 April |
King’s Birthday | 5 June |
Matariki | 14 July |
Labour Day | 23 October |
Christmas Day | 25 December |
Boxing Day | 26 December |
Employees are entitled to public holidays as follows:
Holiday | Date |
---|---|
New Year’s Day | 1 January |
Day after New Year’s Day | 2 January |
Waitangi Day | 6 February |
Good Friday | 29 March |
Easter Monday | 1 April |
ANZAC Day | 25 April |
King’s Birthday | 3 June |
Matariki | 28 June |
Labour Day | 28 October |
Christmas Day | 25 December |
Boxing Day | 26 December |
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In the meantime, stay updated on Labour Law updates throughout the year through our APAC Labour Law Updates. For more news and insights into the market, make sure to subscribe to our blog so you don’t miss out on the latest HR news or contact our team to learn more about the latest changes!
Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of New Zealand employment laws and regulations, please visit the official governmental websites.
Links International is a leading payroll outsourcing provider across Asia Pacific and supports payroll in over 17 countries. Please do not hesitate to contact us.