Employers must provide each employee with a written employment agreement, which should include the following: Name; Job description; Work location; Working hours and rest periods; Notice period for dismissal or resignation; Salary type; Regulations on salary during legal holidays; Process for changes in work location; Arrangements for probation and assessment periods; Employee type (e.g., full – time, part – time, contract worker, etc.); Annual shutdown arrangements; Regulations on various types of leave.
Part – time Employees/Interns: IC Contracts
All formal employment agreements must meet the same requirements.
Fixed – term contracts: It must be clearly stated in the employment agreement that the contract is for a fixed term, along with reasonable and genuine reasons.
Casual Contracts:
There is no guarantee of work on specific dates.
The workload will fluctuate.
Employees are not obliged to accept work assignments.
The contract should also clarify the following:
How the employer will notify employees of available work.
Employees’ basic rights, such as annual leave, sick leave, and bereavement leave.
2. Overview of Local Statutory Welfare Systems
Salary Payment
Pay cycle: Weekly / Fortnightly / Monthly.
Monthly Minimum Wage
The statutory minimum wage in New Zealand is NZD 23.50 per hour, applicable to all full – time, part – time, and casual employees aged 16 and above, regardless of whether their wages are calculated hourly, weekly, or monthly.
Probation Period
This period is usually limited to within 90 days.
Employer Costs
Holiday pay: 8%; Kiwisaver (Retirement savings plan): 3%; ACC Workers’ compensation levy: The actual rate fluctuates according to industry classification and relevant risk levels (average about 0.66%).
3. Salary Payment and Responsibilities for Statutory Holidays
Personal Income Tax
Income ranges (NZD) and tax rates:
$0 – $15,600: 10.5%
$15,601 – $53,500: 17.5%
$53,501 – $78,100: 30.0%
$78,101 – $180,000: 33.0%
$180,001 and above: 39.0%
Overtime Pay and Maximum Working Hours
There is no legal obligation, but the calculation method of overtime pay in New Zealand needs to be clearly agreed upon in the employment contract. Overtime hours can be paid at the normal wage rate or at a higher rate of 1.25 or 1.5 times the normal wage, or employees can choose compensatory leave instead of overtime pay.
When employees work on public holidays, the statutory minimum standard is to pay 1.5 times the hourly wage and provide an additional day of paid compensatory leave (Lieu Day).
Statutory Holidays
After an employee has worked for an employer for 12 months, they are entitled to at least 4 weeks of paid annual leave.
Treatment or Conversion Logic for Unused Annual Leave at the End of the Year
Unused annual leave can be automatically carried over to the next year and will not expire. If an employee leaves with unused annual leave, the employer must convert all the unused leave into salary and pay it to the employee at the normal wage rate.
Statutory Public Holidays
New Zealand’s statutory holidays are divided into national public holidays and regional holidays in each area. The main national statutory holidays in 2025 are as follows:
New Year’s Day: January 1st
Day after New Year’s Day: January 2nd
Waitangi Day (National Day): February 6th
Good Friday: April 18th
Easter Monday: April 21st
ANZAC Day: April 25th
King’s Birthday: June 2nd (the first Monday in June)
Matariki: June 20th
Labour Day: October 27th (the fourth Monday in October)
Christmas Day: December 25th
Boxing Day: December 26th
In addition, each region has its own anniversary (Anniversary Day). For example, Auckland, Wellington, Nelson, Canterbury, etc. will have their own regional holidays. National public holidays apply to all New Zealand employees, while regional holidays only apply to employees in the corresponding regions.
Other Types of Leave
Maternity Leave
The primary caregiver can enjoy up to 26 weeks of paid parental leave, which is paid by the Inland Revenue (IR) of New Zealand, and the employer does not need to pay.
The maximum weekly payment is NZD 712.17 (before tax) (effective since July 1st, 2023, adjusted annually).
If your regular salary is lower than this limit, you will be paid according to your actual income.
Paternity Leave
Unpaid spousal paternity leave: Up to 2 weeks.
Parental Leave
Extended unpaid parental leave: The total duration is up to 52 weeks of leave (including 26 weeks of paid leave + up to 26 weeks of unpaid leave).
Sick Leave
Paid sick leave: 10 days per year, which can be counted from the employee’s start date or after 6 months of employment.
Employees will get 10 days of sick leave again every 12 months.
Unused sick leave can be carried over. Statutorily, it can be accumulated up to 20 days, and it can be accumulated more according to the contract.
Calculation Logic for Incomplete Attendance Salaries (Including Absence or Unpaid Leave)
Salaries are calculated only based on working days; Absences need to be handled through leave applications or unpaid leave.
Expatriate Employees
Split Payroll
Local minimum wage required for work visas: Positions under AEWV (Accredited Employer Work Visa) must pay at least a salary that meets the market standard for the position.
To support the visa application of dependent children, AEWV holders must earn at least NZD 55,844 per year (calculated based on 40 hours per week). This salary standard is equivalent to 80% of the median wage in New Zealand and will be updated annually.
Refer to the immigration policy for details.
Withdrawal of Local Social Welfare (e.g., Pension Fund)
You can withdraw funds from your KiwiSaver (New Zealand Retirement Savings Plan) account in the following situations: Reaching the age of 65; Buying your first home.
4. Dismissal Rules and Compensation Arrangements
Dismissal (Legal Requirements and Best Practices)
Notice Period
The standard notice period for dismissal is usually 1 to 4 weeks, which can be clearly specified in the employment agreement. There is no mandatory minimum notice period set by law.
Voluntary Resignation
Employees can resign at any time according to the employment agreement.
Reason: There is no legal requirement.
Compliance requirements: Employees must submit a written resignation application, which can be submitted in person, by email, or by registered mail.
Statutory notice period: According to the employment agreement. Usually 1 – 4 weeks.
Written resignation letter: Employees need to submit a written resignation letter and inform the employer in advance according to the notice period specified in the employment contract.
Dismissal during Probation
Option 1: During the probation period, the employer does not need to state the reason for dismissal and does not need to follow the usual procedural justice (such as giving warnings or holding disciplinary hearings) to dismiss employees.
Option 2: The probation clause must be clearly stated in writing in the employment agreement and signed by the employee before starting work.
When dismissing an employee, the employer needs to notify the employee in advance according to the notice period specified in the contract or pay the corresponding notice period salary.
Even if the employee is in the probation period, if the dismissal involves discrimination, harassment, or illegal acts by the employer, the employee still has the right to file a complaint.
Negotiated Dismissal
Option 1: In the case of a negotiated termination of the employment contract, the employer and the employee reach a consensus to terminate the employment relationship. This may be caused by the following reasons: The employee’s performance does not meet expectations; Both parties wish to part ways for personal or professional reasons; The employee does not fit in with the organization in terms of culture or interpersonal relationships.
Option 2: Negotiated termination usually needs to meet the following requirements and procedures:
Voluntary agreement: Negotiated termination must be based on the voluntary consent of both the employer and the employee, without coercion or misrepresentation.
Written agreement: It is recommended to clearly state the termination terms in writing, including the termination date, compensation amount (if any), confidentiality clause, etc., to ensure the rights and interests of both parties.
Compensation arrangement: The employer usually provides a certain amount of compensation in exchange for the employee’s consent to terminate the contract. The compensation amount can be negotiated and should be stated in the agreement.
Protective negotiation: According to the “Employment Relations (Agreement to Terminate Employment) Amendment Act” proposed in 2024, the negotiation content during the negotiated termination between the two parties is protected and cannot be used as evidence for future unfair dismissal or personal complaints, unless there are special exemptions.
Notice and payment: The termination agreement should clearly state the last working day, and the employer needs to pay all the employee’s salary, unused annual leave, and other statutory payments up to the termination date.
Dismissal with Just Cause
Dismissal for misconduct / Redundancy dismissal / Constructive dismissal (constituting forced resignation): When implementing any form of dismissal, the employer must comply with the relevant clauses in the employee’s employment agreement, especially those regarding the notice period and reasons for dismissal.
Layoffs and Redundancies
Redundancy in New Zealand has strict legal procedures and requirements, mainly including the following aspects:
Layoffs must have objective and reasonable business reasons, such as company restructuring, business contraction, automation replacement, or economic pressure.
Employers cannot casually dismiss employees on the grounds of redundancy. The positions being laid off must be truly redundant, and the same position cannot be filled with new employees in the short term, otherwise, it is illegal.
The principle of good – faith negotiation must be followed. The employer needs to communicate with the affected employees in advance, explain the reasons for the layoff, the restructuring plan, the affected positions, and the schedule, and give employees sufficient opportunities to provide feedback and suggestions.
The employer needs to seriously consider the employees’ feedback and notify the employees in writing of the processing results.
Conversion of Annual Leave for Departing Employees
Employee’s annual leave pay = Employee’s weekly salary × (Number of weeks worked ÷ 52 × 4).
5. Analysis of Favorable Measures and Policies by Local Governments for Opening Companies and Hiring Local Employees
Incentive Policies
Local Employment Protection Policies
In New Zealand, the government and multiple agencies have introduced a number of measures and relevant legislation to protect and support the Māori indigenous workforce, aiming to improve their employment situation and eliminate systemic barriers. These efforts cover aspects such as workplace fairness, skills development, and anti – discrimination, aiming to enhance the participation and development opportunities of the Māori group in the labor market.
Quota Ratio for Foreign Employees’ Work Visas
Employers who wish to hire overseas employees with AEWV (Accredited Employer Work Visa) must first apply to become an “Accredited Employer”.
6. Human Resources Analysis and Employment Suggestions in Different Regions
Number of Employed People
As of the fourth quarter of 2024, the total number of actual employment positions in various industries in New Zealand was approximately 2.28 million.
Unemployment Rate
As of the first quarter of 2025, the unemployment rate in New Zealand was 5.1%, the same as the previous quarter. This is equivalent to approximately 156,000 unemployed people, an increase of approximately 22,000 compared to the same period in 2024.
Trend of Average Salaries
Median hourly wage (wages and salaries): NZD 33.56 per hour, a 6.0% increase from last year.
Average normal working – hour salary: NZD 41.52 per hour, a 5.2% year – on – year increase.
Employment Suggestions
Always comply with the law. The key applicable laws include: “Employment Relations Act 2000”; “Minimum Wage Act 1983”; “Holidays Act 2003”; “Health and Safety at Work Act 2015”.
7. Cultural Adaptation in Different Regions
Language
English.
Religious Customs
New Zealand has no state religion, and religious freedom is protected by law.
According to the latest data, the religious belief distribution is as follows: No religious belief: 48.5%; Christianity: 37% (including Anglican, Catholic, Presbyterian, etc.); Hinduism: 2.6%; Islam: 1.3%; Buddhism: 1.1%; Māori traditional beliefs: 1.3%; Sikhism: 0.9%; The number of believers in other religions and spiritual beliefs is small but increasing.
Business Culture
New Zealand’s business culture is known for being relaxed yet professional, emphasizing honesty, humility, and fairness.
Communication Style: Direct and clear: New Zealanders tend to communicate in a straightforward manner without being aggressive. Informal but respectful: Even when dealing with senior management, people will quickly start using first names.
Meetings and Negotiations: Meetings are well – structured but have a relaxed atmosphere, and punctuality is very important. Decisions are usually made through consensus – building rather than top – down orders. Open discussion is encouraged, and different opinions are respected.
Work Ethic and Values: Emphasize the balance between work and life and do not encourage long – term overtime. Value integrity, equality, and collaboration. New Zealanders appreciate initiative and self – motivation.
Diversity and Inclusion: There is an increasing emphasis on fulfilling the obligations of the “Te Tiriti o Waitangi” in business activities. The importance of Māori culture in the public and private sectors continues to rise. Emphasize the inclusion of gender, racial, and religious diversity.
Dress Code: Most industries follow a Smart Casual style; The finance and legal industries are relatively formal; The technology, startup, or creative industries are more casual.
Business Entertainment: Entertainment is usually quite casual, such as coffee meetings, working lunches, or social events; Formal business dinners are not common, and alcohol – centered occasions are usually avoided.
