Global Expansion Resources | New Zealand
New Zealand Employment Contracts
Helping businesses expand into New Zealand with our expert PEO services
Ensure you comply with New Zealand employment laws and issue compliant New Zealand employment contracts through our leading PEO Services
As one of the best international PEO service providers on the market, when you expand globally, Leap29 is here to help you overcome all of the intricate challenges and complexities that come with foreign markets. Our comprehensive PEO services can assist you with outlining compliant and fair employment contracts that not only protect you, but also your international hires, on your journey towards global expansion.
Businesses wishing to employ from the New Zealand talent pool must give every worker a written employment agreement, detailing their expectations of the employee and what the recruit will be entitled to during their employment.
While expansion in New Zealand offers many benefits to budding businesses, the process equally presents some daunting challenges. As a well-established, professional and knowledgeable workforce management partner, with over 20 years of experience in the industry, Leap29 is here to help you with your enterprise’s international development.
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New Zealand Expansion Advice
What does a New Zealand employment contract typically include?
According to the New Zealand Employment Government website, a New Zealand employment contract should include:
- The employer’s name
- The employee’s name
- The nature of the work
- The location at which the work will be carried out
- The length of employment (if it is a fixed-term contract, a genuine reason for this must be given)
- The agreed working hours (number of hours, start and finish times, days of the week the employee will work, etc.)
- The wage rate or salary payable (this must be the relevant minimum wage, at the least) and how it will be paid
- Personal grievance statements
- A statement that the employee will get (at least) time-and-a-half payment for working on a public holiday
- An employment protection provision for workers whose company has been sold or transferred, or if the employee’s work is contracted out
- Details of agreed trail periods, probationary agreements, or availability provisions
Depending on any other conditions you have agreed on with your potential employees, a New Zealand employment contract can also include:
- The notice period required
- Details about rest and meal breaks
- Restraint of trade clause
- An annual closedown
For more information on requirements for New Zealand employment contracts, click here.
What types of employment contracts are there in New Zealand?
As outlined on the New Zealand Employment Government website, New Zealand employment contracts are split into two different types:
- Collective employment agreements
- Individual employment agreements
Collective Employment Agreements
A collective employment agreement is negotiated between an employer and a registered union that covers employees, who are members of the union, within the workplace.
Therefore, the union will agree upon the terms of your employment with the employer on your behalf.
Collective employment agreements also allow employees to have additional individual terms, which should be provided in writing and signed by both you and the employer.
For more information on Collective Agreements, click here.
Individual Employment Agreements
Individual employment agreements are agreed upon between the employer and employee.
If the terms negotiated are better conditions than the minimum rights in New Zealand, the employer will need to record these within the employment agreement. Certain benefits, such as annual holidays, do not need to be included within the agreement, but the employer must still provide these by law.
If the employee is a union member, under the Holidays Act 2003, the employer must inform them of their entitlements and tell them to contact their union, or the New Zealand Employment Government, should they wish to find out more information.
The employee is entitled to New Zealand minimum employment rights and employers cannot provide any less than what is outlined in the country’s law, even if the employee agrees to less during the negotiation.
For more information on Collective and Individual Employment Agreements, click here.
Can I change an employment contract?
Employers can change New Zealand employment contracts, but not without the employee’s knowledge. Both parties must sign off on any changes, even if they are temporary.
How do I write a New Zealand employment contract?
While the New Zealand Employment Government website outlines the required components of a New Zealand employment contract, writing these terms into a professional, compliant and accurate document is no easy task.
A New Zealand employment contract must comply with employment laws regarding the following:
- Minimum wage
- Rest and meal breaks
- The availability clause
- Annual holidays
- Public holidays
- Sick leave
- Bereavement leave
- Other types of leave (e.g. if they’ve been injured in a work accident or are training in the armed forces)
- Employees affected by family violence
- Parental leave and parental leave payments
- Flexible working arrangements
- Discrimination
- Health & safety
- Redundancy, work changes or restructuring
- Employment relationship problems
- Penalties
To discover more about minimum employment rights and responsibilities in New Zealand, click here.
To ensure a smooth, compliant and speedy onboarding of New Zealand employees, it is highly recommended that you outsource your employment contracts to a trusted professional. This is where our global PEO services come in.
Why use a PEO partner to manage New Zealand employment contracts?
Our expert global PEO solutions not only make the process of internationally expanding your business less complicated and more efficient, but they also help you navigate a foreign minefield of employment law – avoiding unnecessary fines, penalties and punishments for non-compliance. With Leap29, there’s no need to worry about the financial aspects either, as we can also provide you with guidance surrounding international taxes, benefits, payroll and insurance.
As your Professional Employer Organisation, our goal is to keep you and your new employees happy, because the last thing any expanding enterprise wants is disputes, unhappy employees and disruption to business. That’s why we can ensure all employment contracts that your company issues are compliant with all New Zealand employment laws.
Here at Leap29, we also pride ourselves on being one of the most versatile PEO companies in the industry. With global recruitment services available for several lucrative sectors, we can assist you with your global expansion into the Construction & Engineering, Life Science & Pharmaceutical, Manufacturing, Oil & Gas, Power & Renewable Energy and Technology sectors in over 150 countries.
If you want to find out more about how our PEO Services in New Zealand can support your global expansion, call our experts on +44 (0) 20 8129 6860 or email [email protected] to get started.
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