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Written Agreements

In New Zealand, employment contracts must be in writing. Failure to follow this requirement can result in a fine of NZD 1,000 (New Zealand dollars) per employee for the employer.

For the first 30 days, new employees must be employed under terms consistent with the collective agreement. If an employee chooses not to join the trade union, the employer must provide them with an individual contract. It must be signed by the employer and employee, although it can still be valid even if it isn't signed. Employers must keep a copy of the employment agreement. Employees are entitled to a copy of their agreement on request.

An employment contract must include the contracting parties' names, a description of the work, place of work, hours of work, remuneration, overtime pay, probation, trial period, fixed-term or permanent nature of employment, etc. Minimum rights (such as the minimum wage, annual holidays, sick leave, bereavement leave, overtime pay, etc.) are legal requirements and apply even if they are not specified in the employment agreement.

Oral Agreements

In New Zealand, employment contracts must be in writing. While an employee's rights are protected even under a verbal contract, failure to ensure that the employment contract is in writing may result in a fine of NZD 1,000 (New Zealand dollars) per employee for the employer.

Implied Agreements

There are no provisions regarding implied contracts in New Zealand. Employment contracts must be drawn in writing.

Working hours are determined by employment contracts, but they must not exceed 40 hours per week (excluding overtime). If the maximum number of hours is less than 40, then the work must not exceed five days a week. Employees under 16 years of age cannot be employed between 10:00 PM and 6:00 AM on any day.

If an employee or employer wants to change work hours, both should agree to this in writing in the employment agreement. Under special circumstances, working hours can be increased by giving reasonable notice to employees. Working hours may be reduced as an alternative to redundancy in some situations, such as genuine financial, commercial, or economic problems or genuine business restructuring.

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An employer may require an employee to serve a probationary period after joining. This must be specified in the employment contract. A probationary period is used to assess an employee's skills in a new job or role (if they are already working for the employer). There are no limits on the duration of probationary periods. If the employer finds the employee's work unsatisfactory at the end of the probationary period, they can dismiss the employee by providing justified reasons. They must give notice before dismissal. Employees have the right to challenge dismissal after probation on the grounds of unjustified dismissal.

New Zealand allows trial periods if agreed upon by both the employee and employer in the employment agreement before the employee starts work. Otherwise, they are invalid.

The employment agreement must specify that:

• The employee will be on a trial period at the start of their employment, lasting no more than 90 days (but it can be shorter). The exact duration must be stated (e.g., 30 days or 90 days).
• The employer can dismiss the employee during the trial period.
• The employee cannot bring a personal grievance or legal action regarding their dismissal.

Notice Period

There is no legal limit on notice for dismissal in New Zealand. A notice period is agreed upon in the employment contract. If the employment agreement does not have a notice period, fair and reasonable notice must be given depending on the years of service, role, type of job, and common practice in the industry. The notice period is usually 2 - 4 weeks.

The notice must be given in writing and is usually the same for employees and employers. The employer can choose to agree with the employee to waive all or some of their notice period if the employee requests or consents to it.

Giving Notice: If an employee gives the required notice, the employer must pay them until the end of the notice period. The employer may ask the employee not to work the full notice period if:

• The employee agrees, or
• The agreement includes a clause allowing payment instead of working the notice period.

Even if the employee doesn’t work the full notice period, they must still be paid for it. However, if the employee and employer agree to waive part of the period, they are only paid for the days worked.

Severance Benefits

There are no provisions for mandatory severance benefits in New Zealand. At the time of the contract termination, employees are entitled to a "final pay" that includes pending salary, allowance for annual leave and public holidays, and other payments owed to them.

Employers can provide redundancy compensation if it is agreed upon in the employment agreement. If an employment agreement doesn't mention any such clause, an employee isn't legally entitled to redundancy pay. When employment is ending due to redundancy, employees must be given notice according to the contract terms.

Minimum Wage

Minimum wage rates apply to employees aged 16 and over. They are set on an hourly basis by the government and are reviewed each year. There are 3 types of minimum wages: adult, starting out, and training.

Effective April 1, 2025, minimum wage rates are:

• Adult minimum wage - NZD 23.50 per hour (up from NZD 23.15)
• Starting and training minimum wage - NZD 18.80 per hour (up from NZD 18.52)

Overtime, Holiday & Vacation Pay

Employment contracts determine working hours. While there is no statutory requirement for overtime pay, many employers pay their employees if they work more than their normal work hours. Overtime work can be paid by factoring it into the employee's salary, paying for the time at the employee's normal pay rate, a higher rate of pay, or at least the minimum wage rate. This must be put in the employment agreement.

Annual leave is paid at either the employee's ordinary weekly pay at the beginning of the annual leave or the employee's average weekly earnings for the 12 months just before the end of the last pay period preceding the annual leave, depending on whichever is higher.

Employees may request 1 week of their 4-week minimum annual holiday entitlement each year to be paid in cash. Alternatively, some employees may receive their annual holiday pay on a pay-as-you-go basis if the employee:

• Has a fixed-term contract of less than 12 months, or
• Works so irregularly that providing 4 weeks of annual leave is not practical.

Payment for working on public holidays must be at least the greater of 1.5 times the average daily pay or the penal rate agreed to in the employment agreement.

Visas

New Zealand has the following categories of visas:

• Visitors visa - This visa is issued to foreign nationals traveling to New Zealand to visit family and friends, for tourism, amateur sports, or to study for up to three months. It is valid for up to nine months, depending on the purpose of the visit.
• Working holiday visa - This visa is issued to foreign nationals of particular countries for a maximum duration of 12 months to work or study in New Zealand while on holiday.
• Transit visa - This visa is issued to foreign nationals passing through New Zealand on their way to another destination. Visa holders must stay in the airport transit area only.
• Business visitor visa - This visa is issued to foreign nationals coming to New Zealand for business purposes or to study for a maximum of three months a year.
• Medical treatment visitor visa - This visa is issued to foreign nationals accepted for medical treatment in New Zealand. Even people from visa waiver countries have to apply for this visa.
• Partner of worker visitor visa - This visa is issued to partners of foreign nationals who have an appropriate work visa. It allows them to study in New Zealand for up to three months, but they cannot work.
• Temporary retirement visitor visa - This visa is issued to people above 66 years of age and allows them to stay up to two years. They must invest at least NZD 750,000 (New Zealand dollars), have an annual income of NZD 60,000, and a corpus of NZD 500,000.
• Academic visitor visa - This visa is issued to foreign nationals visiting as academics and taking part in teaching, educational, professional management, or research activities for a maximum of three months. If they want to stay longer, they have to apply for a work visa. They must present a letter of invitation from the tertiary education institution for which they plan to work.
• Student visa - This visa is issued to foreign nationals planning to study full time in New Zealand. Proof of admission, sufficient funds, and accommodation must be provided.
• Temporary work visa - This visa is issued to foreign nationals who wish to temporarily work in New Zealand. It is valid for up to two years.
• Work to residence visa - This visa is issued to foreign nationals who have already worked for two years and want to apply for residence in New Zealand. They must have a permanent or long-term job offer and meet the age, health, and character requirements.
• Essential Skills visa - This visa allows people to temporarily move to New Zealand to work for a specific employer. It is valid for five years.
• Investor business migration visa - This visa is issued to people looking to invest in New Zealand. There are two categories: NZD 3 million invested for four years or NZD 10 million invested for three years.
• Entrepreneur visa - This visa is issued to experienced business people who wish to move to New Zealand and buy or establish a business. It can be valid for six months to two years, after which a residence visa can be applied. A minimum capital investment of NZD 100,000 is required.

Work Permits

Foreign nationals who wish to work in New Zealand require a work visa. The following documents are required to apply for a work visa:

• Proof of job offer
• Proof of identity and good character
• Passport and photo
• Medical certificate

There are different categories of work visas that allow employees to stay temporarily for periods ranging from two to five years, or to apply for permanent residence after working for two years or 30 months.