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Summer DST UTC +13:00(NZST) 

Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.

The payroll frequency in New Zealand is bi-monthly/monthly. 

• Adult Minimum Wage: Increased to NZD 23.50 per hour (from NZD 23.15).

• Starting-Out and Training Minimum Wages: Set at NZD 18.80 per hour, which is 80% of the adult minimum wage.

These updated rates generally apply to most workers aged 16 and over. However, certain exceptions exist for employees on a starting-out or training wage, and those with a disability who hold a specific wage exemption permit.

All working hours over the standard working hours per week are to be paid as overtime and are regulated by employment contracts or collective agreements. Before commencing, overtime must be mutually agreed upon between the employee and the employer. 

The payment of overtime hours is not a legal requirement; however, they are usually paid at a rate of 150% of the regular salary rate of pay. 

In New Zealand, personnel files must be kept for at least six years. Pay records are kept for seven years.

The stage of the hiring process in New Zealand is as follows:

• Describing the job
• Attracting suitable applicants
• Interviewing
• Choosing the best applicant
• Making the offer and finalizing the employment agreement
• induction and settling the employee into their job

Good induction sets the tone and expectations for the employee’s relationship with their manager and the organization, and helps an employee understand the purpose, functions, and tasks of their job so they can perform at their best.

The employee should feel that they are supported and valued during the induction rather than it being just about the manager ticking off a checklist.

The induction does not have to be completed by one person and doesn’t all have to be done on the first day.

Sometimes, too much information all at once can be hard to take in and retain. The induction can provide information on aspects such as the organisation’s history, values, culture, services offered, customers, staff, policies, practices and expected behaviour.

• The statutory probation period in New Zealand begins on the first day at work and can be for up to 90 days.  

• The actual timeframe will be stipulated in the employment contract and only applies to employees who have not worked for the employer before. 

There are 10 national public holidays in New Zealand:

• January 1: New Year’s Day 
• January 2: The Day after New Year’s Day
• Febraury 6: Waitangi Day 
• April 18: Good Friday 
• April 21: Easter Monday 
• April 25: ANZAC Day 
• June 2: King's Birthday
• June 20: Matariki
• October 27: Labour Day 
• December 25: Christmas Day 
• December 26: Boxing Day

• Entitlement: Employees receive 10 paid sick days per year once they have completed six months of employment.

• Eligibility: This entitlement applies to employees who work a minimum of 10 hours per week and meet other specified criteria.

• Usage: Sick leave can be used for an employee's own illness or injury, or to care for a dependent.

• Carry-Over: Unused sick leave can be carried over to a maximum of 20 days. However, sick leave cannot be cashed out.

Maternity leave is called Primary Caregiver Leave in New Zealand, and it is accessible to:

• Female employees who are expecting a child, her partner or spouse, and employees who will permanently be in charge of providing the majority of the care, development, and upbringing for a child under the age of six; this includes adoption but excludes foster care or other temporary care arrangements. If the employee is married or living with a partner, they can decide who will be the main caregiver. 
• Pregnant employees are eligible for 26 weeks of primary care leave and are compensated by the government between 177.00 NZD and 585.80 NZD per week before tax. 
• When it is due for childbirth or when the employee has a child, primary caregiving leave begins on the due date. In any other scenario, primary caregiver leave begins when the employee is named the child's primary caregiver. Up to six weeks (or sooner with the employer's permission) before the baby's due date or the time the employee will take on the role of primary caregiver for the child, the employee may begin their primary carer leave. 

In New Zealand, paternity leave is referred to as partners leave. Partners are entitled to leave beginning 21 days before the baby's due date or the day the employee's partner or spouse assumes primary responsibility for a child under the age of six. This ends 21 days after the baby is born (unless the child is discharged from the hospital more than 21 days after the birth, in which case the partner's leave timeframe ends on the day the child is discharged).

Increased Maximum Weekly Rate:
Effective July 1, 2025, the maximum weekly parental leave payment will be raised to NZ$788.66. Employees who qualify will continue to be paid at their regular earning rate, up to the new maximum threshold.

Support for Self-Employed Parents:
Starting July 1, 2025, the minimum parental leave payment for eligible self-employed individuals in New Zealand has increased to NZ$235 per week.

There is a range of Parental leave options in New Zealand for:

• Special leave - Unpaid leave for pregnancy-related appointments
• Primary carer leave
• Extended leave
• Spouse or partner’s leave
• Negotiated carer leave — If you’re not eligible for work leave.

After completing six months of employment and meeting minimum work hour criteria, employees are eligible for paid leave to address bereavement. This includes up to 3 days for the death of an immediate family member, and 1 day for extended family or close friends. Since April 2021, this leave also covers instances of miscarriage or stillbirth. Bereavement leave can be taken non-consecutively and, if necessary, even during an employee's annual leave. Payment for this leave is at the employee's relevant or average daily pay.

Employees affected by family violence are entitled to 10 days of paid leave per year. This leave is available from the first day of employment, provided the employee meets certain conditions, including typically having been employed for six months. In addition, employees can request flexible work arrangements for up to two months to help them deal with the effects of family violence. Employees are also protected from discrimination due to their experience with family violence. While employers may request proof, they must exercise consideration and sensitivity when doing so.

Employees who are called for jury duty must be granted leave to fulfill this civic obligation. While employers are not legally required to pay employees during jury service, many choose to provide paid leave, sometimes topping up the attendance fees provided by the Ministry of Justice to ensure employees receive their normal pay. Employers cannot compel employees to use their annual leave for jury duty. Furthermore, employees are protected from dismissal or any disadvantage as a result of serving on a jury. The court may also reimburse jurors for certain expenses, such as travel and childcare.

Employers in New Zealand are legally obligated to allow employees time off to vote if they cannot reasonably do so before or after their work hours. Specifically, if an employee is working after 3 PM on polling day, they are entitled to up to two hours off without any deduction from their wages. This provision ensures that all eligible employees have the opportunity to exercise their right to vote.

Union members in New Zealand are eligible for paid leave of up to 5 days per year to attend approved employment relations courses. The specific number of days an employer is required to grant depends on their Full-Time Equivalent (FTE) employee count:

• 1–5 FTEs: 3 days
• 6–50 FTEs: 5 days
• 51–280 FTEs: 1 day for every 8 FTEs (or part thereof)
• 281+ FTEs: 35 days, plus an additional 5 days for every 100 FTEs above 280

To access this leave, employees must provide their employer with 4 days notice, including details of the course. Employers can only refuse such requests on reasonable business grounds. This leave is compensated at the employee's ordinary rate of pay.

The term of notice period is given in the employment contract and typically it is between two and four weeks.

There is no statutory severance entitlement in New Zealand unless expressly stated in the 
employment agreement.

A foreign national may apply for a work visa for the following reasons: 

• a country that has a specific work program,
• a job offer from a New Zealand firm,
• a particular work-related purpose or event, or
• someone who has been studying there

Some work visas can also result in residence, which is the unrestricted right to live, study, and work. 

The New Zealand workforce needs certain skills, experience, and qualifications to apply. 

Temporary work visa for essential talents that allows working for 1 to 5 years. 

From home to office Visas - Temporary visa possibilities that grant residency status after two years of continuous full-time employment. 

Working holiday visas - 12 to 23 months of work and travel are permitted. These visa policies vary depending on where you are from. 

Employee visas with a specific purpose are designed to accomplish a certain goal. These visas normally have a validity of three to twelve months, while multinational personnel occasionally receive three-year visas. 

Relocating business visas are utilized when an employer or corporation moves to New Zealand. 

Additionally, beginning on November 1, 2021, all New Zealand employers who employ foreign workers will need to be certified.

The following legal and background checks are done in New Zealand: 

• Criminal records
• Drug screening- If required for employment
• Credit checks- Depends, on if there is a significant financial risk, such as dealing with accounts or financial administration, the short-listed employee has consented.