EOR.net.au
Employing in New Zealand
New Zealand is the most common first international market for Australian businesses. The language, business culture and time zone are close, Australians can work there without a visa, and many customers already treat the two countries as one region.
The similarity can be misleading, though. New Zealand employment law is built around good faith and personal grievances, and the Holidays Act 2003 calculates leave pay in its own way. Using an Employer of Record (EOR) for the first hires lets you test the market while a local provider handles the payroll detail.
Why Australian businesses go there
- Shared language and very similar business culture
- Only about 2 hours ahead of Sydney
- Australian citizens and permanent residents need no work visa
- Easy to manage from an Australian head office
What to watch
- Every employee needs a written employment agreement with specific clauses
- Personal grievances for unjustified dismissal are available from day one unless a valid 90-day trial applies
- Holiday pay calculations under the Holidays Act are a frequent source of underpayment
- KiwiSaver contributions and ESCT must be handled through payroll
Hiring and contracts
- Employment contracts
- A written employment agreement is compulsory for every employee. Individual agreements need set clauses, including how employment relationship problems are resolved and an employment protection provision covering restructures.
- Probation
- Any employer can use a trial period of up to 90 days, provided it is agreed in writing before the employee starts. An employee dismissed under a valid trial cannot raise an unjustified dismissal grievance. Probationary periods are a separate, permitted option.
- Working hours
- There is no legal maximum working week. Agreed hours must be written into the agreement, and staff get paid rest breaks and unpaid meal breaks.
- Minimum wage
- From 1 April 2026 the adult minimum wage is NZ$23.95 an hour. A lower rate applies to starting-out workers and trainees.
Leave and holidays
- Annual leave
- Employees earn 4 weeks of paid annual holidays once they complete 12 months of continuous employment.
- Sick leave
- After 6 months of continuous employment, staff are entitled to 10 days of paid sick leave each year.
- Parental leave
- Eligible employees can receive up to 26 weeks of paid parental leave funded by the government. Job-protected leave runs to as much as 52 weeks, depending on service.
- Public holidays
- There are 12 public holidays each year, among them Matariki and a regional anniversary day. Working a public holiday earns time and a half and often an alternative day off as well.
Employer costs
- Retirement and social security
- For KiwiSaver members, employers contribute at least 3.5% of gross pay from 1 April 2026, alongside a default employee rate of 3.5%. Employer superannuation contribution tax (ESCT) applies to the employer share.
- Payroll taxes
- PAYE is deducted from wages and employers pay ACC levies to fund workplace injury cover. New Zealand has no state payroll tax.
- Mandatory benefits
- KiwiSaver, ACC injury cover and the holidays and leave set out in the Holidays Act 2003.
Ending employment
- Notice periods
- The law sets no minimum notice period. The agreement should specify one, and if it does not, reasonable notice is required.
- Dismissal protection
- A personal grievance for unjustified dismissal can be raised from the first day of employment, except where a valid 90-day trial applied. A fair process is always required.
- Severance
- There is no legal right to redundancy pay. Any compensation depends on what the employment agreement says.
Contract terms and visas
- IP and restraint clauses
- A restraint of trade is enforceable only when it is reasonable. Copyright in work an employee creates as part of the job generally belongs to the employer.
- Visas and right to work
- Australian citizens and permanent residents can live and work in New Zealand with no work visa. Most other hires use an Accredited Employer Work Visa, and the employer must hold accreditation.
Compared with Australia
| New Zealand | Australia | |
|---|---|---|
| Annual leave | Employees earn 4 weeks of paid annual holidays once they complete 12 months of continuous employment. | Full-time employees get 4 weeks of paid annual leave a year (5 weeks for some shift workers), built up progressively. Unused leave is paid out when employment ends, and many awards add 17.5% leave loading. |
| Sick leave | After 6 months of continuous employment, staff are entitled to 10 days of paid sick leave each year. | Full-time employees get 10 days of paid personal/carer's leave a year, plus 2 days of unpaid carer's leave and 2 days of paid compassionate leave per occasion. Every employee can also take 10 days of paid family and domestic violence leave a year. |
| Notice | The law sets no minimum notice period. The agreement should specify one, and if it does not, reasonable notice is required. | Under the National Employment Standards an employer gives 1 week of notice for up to 1 year of service, rising to 4 weeks for more than 5 years, plus an extra week for employees over 45 with at least 2 years of service. Pay in lieu is allowed, and awards set the notice employees must give. |
| Retirement and social security | For KiwiSaver members, employers contribute at least 3.5% of gross pay from 1 April 2026, alongside a default employee rate of 3.5%. Employer superannuation contribution tax (ESCT) applies to the employer share. | On top of wages, employers pay the Superannuation Guarantee at 12% of qualifying earnings. Payday Super has applied since 1 July 2026, so contributions go out with each pay and must arrive in the fund within 7 business days. Australia has no separate employer social security levy. |
| Dismissal protection | A personal grievance for unjustified dismissal can be raised from the first day of employment, except where a valid 90-day trial applied. A fair process is always required. | After the minimum employment period, employees can claim unfair dismissal if an award or agreement covers them or they earn under the high income threshold, $190,100 from 1 July 2026. Protection against adverse action under the general protections starts on day one, and small businesses may rely on the Small Business Fair Dismissal Code. |
Frequently asked questions
Do I need a New Zealand company to hire there?
No. An EOR can employ your New Zealand staff through its own local entity, so you can hire before deciding whether to register a company.
Can an Australian move to New Zealand to work for us?
Yes. Australian citizens and permanent residents need no visa to work in New Zealand. Once they are based there, though, they should be employed under New Zealand law, which an EOR can do.
Is there a probation period?
Employers can use a trial period of up to 90 days if it is agreed in writing before work starts. During a valid trial, a dismissed employee cannot bring an unjustified dismissal grievance.
