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Hiring in New Zealand
Background checks in New Zealand
Hiring employees and other types of workers in New Zealand
Language requirements in New Zealand
Practical guide to New Zealand payroll
International expansion made easy
Expanding your business into New Zealand presents an excellent opportunity to tap into a pool of highly skilled professionals within a business-friendly ecosystem. However, hiring talent typically requires establishing a local entity, which can be both costly and time-consuming.
Thankfully, there are workforce solutions, such as employer of record (EoR), that can bypass these challenges. Modern companies today use an EoR solution to help them quickly and compliantly hire talent anywhere in the world.
An Employer of Record (EoR) is a third-party service provider or organisation that acts as the legal employer for your employees in a specific country or region where your company does not have a local presence. This arrangement notably alleviates the HR and administrative burdens associated with international recruitment.
Utilising an EoR service allows your business to bypass the complexities and overheads of setting up foreign operations. Instead, you can concentrate on core business objectives while the EoR manages the intricacies of international employee management.
In this guide, we’ll provide everything you need to know about hiring talent in New Zealand, including background checks, hiring options, setting up payroll, and leveraging the EoR solution for your expansion efforts in New Zealand.
When hiring in New Zealand, there are many factors you need to consider in order to remain compliant, including:
Familiarise yourself with the country’s employment laws, including the Employment Relations Act 2000 and the Health and Safety at Work Act 2015. These laws govern workplace relations and safety and mandate fair working conditions, minimum wage requirements, and thorough health and safety practices.
Employers ensure compliance with these regulations, which demonstrate a commitment to employee welfare, which is highly valued in the New Zealand labour market.
Employers in New Zealand can provide a 90-day trial period to new hires, provided they clearly explain and agree upon the trial’s terms before the employee begins work.
The local labour law requires that all employees in New Zealand have a written employment agreement, which both the employer and the employee must sign. This includes specifying the type of employment, whether it’s full-time, part-time, fixed-term, or casual.
Employers should also verify that the candidate has the legal right to work in New Zealand. This involves checking their residency status or work visa.
The workplace culture in New Zealand might differ from what international employers are accustomed to. There is a strong emphasis on work life balance, with a culture that encourages time away from work to recharge and focus on personal interests and family.
In addition, New Zealand’s workforce is characterised by its diversity and inclusiveness, with a notable presence of Indigenous Māori cultural values. Understanding and appreciating these cultural nuances can greatly assist in creating a harmonious and respectful workplace environment.
Given the country’s workplace culture, attracting, and retaining top talent requires a holistic approach. Employers must look beyond offering competitive compensation packages to differentiate themselves from the rest.
Flexible working arrangements, professional development opportunities, and a strong organisational culture are increasingly important to New Zealand professionals. These elements, combined with a clear commitment to employee wellbeing, can set your organisation apart as an employer of choice in the competitive New Zealand job market.
When hiring in New Zealand, you should have a clear and comprehensive policy in place. These should outline both the employer’s and employee’s rights and obligations.
Employers must ensure their practices align with local labour laws and norms when conducting background checks to maintain fairness and respect for potential employees’ privacy and rights. Here are some important considerations:
Conducting employee background checks in New Zealand requires careful attention to legal requirements and ethical considerations. By obtaining consent, respecting privacy, ensuring relevance, and treating applicants fairly, employers can navigate this process effectively while upholding the rights and dignity of potential employees.
Here are some of the types of background checks you can conduct in New Zealand:
In New Zealand, conducting criminal background checks on employees is allowed as long as there’s consent from the individual.
Employers may request a criminal history from the Ministry of Justice or obtain New Zealand Police vetting information, provided the prospective or current employee has agreed to it in writing.
Criminal background checks are used to determine if individuals have records that might affect their suitability for certain roles, especially those involving security, trust, or the welfare of vulnerable populations. However, under New Zealand law, such checks must be relevant to the duties of the job position, and employers are required to handle any information obtained with high confidentiality and fairness according to the Privacy Act.
The New Zealand workforce is made up of various types of workers, each with specific roles and characteristics. The main types of workers include:
These employees work regular hours and have ongoing employment agreements that do not have an end date. This category of employment is characterised by stability and continuity in terms of employment relationships and benefits.
Most often, the term “full-time” is somewhere between 35 and 40 hours per week. Permanent full-time employees are entitled to the full set of employment benefits and rights under New Zealand law, which includes annual leave, sick leave, and other statutory entitlements.
These employees also have ongoing employment agreements but work fewer hours than full-time employees on a regular schedule. A permanent part-time employee in New Zealand is an individual who engages in an ongoing employment relationship, working a predetermined and consistent number of hours each week, which is less than those considered full-time.
Despite the reduced hours, permanent part-time employees are provided with the same proportional employment rights and benefits as their full-time counterparts. This includes entitlements such as pro-rata annual leave, sick leave, and other statutory necessities tailored to their part-time hours.
These workers receive employment for a specific term or project completion, with a predetermined termination date. This type of employment agreement has a set duration, which is established at the outset of the employment relationship. The duration could be defined by a specific date, such as the completion of a project or the return of a replacement employee.
When hiring a fixed-term employee, it’s required by New Zealand law that the employment agreement clearly state the reason for the fixed-term arrangement. There must be a genuine reason, based on reasonable grounds, for employing someone on a fixed-term basis rather than offering permanent employment. Additionally, the agreement must specify the way in which the employment will end, such as a specific date, the conclusion of a project, or upon the return of an employee from leave.
They have no guaranteed hours and work on an ‘as-needed’ basis, often with variable hours and pay depending on the work available.
Casual employees, unlike permanent or fixed-term employees, have no expectation of continued employment. They are hired for specific tasks or periods and are only paid for the hours they work. There is no legislative definition of what constitutes a casual employee in New Zealand; however, the characteristic that defines casual employment is the lack of a firm commitment in advance from the employer regarding the duration of the employee’s employment or the days (or hours) the employee will work.
In New Zealand, casual employees enjoy the same employment rights as regular employees, including minimum wage, holiday pay, and rest breaks. They become eligible for sick leave and bereavement leave after six months of consistent employment, where they have worked at least an average of 10 hours a week and at least one hour a week, or 40 hours a month. Despite the casual nature of employment, both parties must adhere to the Employment Relations Act 2000, ensuring fair treatment in the workplace.
Individuals who are training and learning on the job, possibly through formal apprenticeship programs, can gain qualifications in a trade.
Often referred to as freelancers or self-employed, independent contractors provide services under a ‘contract for services’ and manage their own tax and ACC levies.
It is beneficial for employers to understand the implications of engaging with independent contractors, including the correct classification of workers, to prevent legal challenges. Ensure contracts for services are clearly defined, outlining the scope of work, delivery expectations, and payment terms, which will safeguard both parties’ interests
An independent contractor agreement is a legally binding document that outlines the terms and services between a contractor and their client. It specifies the nature of the work to be performed, compensation, contract duration, and other key terms and conditions for service provision. This type of agreement is essential for clarifying the relationship between the parties involved, setting clear expectations, and protecting the rights of both the independent contractor and the client.
The agreement ensures that both parties understand that the contractor will be performing services as a separate entity from the business and not as an employee. This distinction is crucial as it affects taxation, liability, and employment benefits. For instance, independent contractors are responsible for their own tax obligations and do not usually receive the same benefits as employees, such as annual leave or sick leave.
It’s important for independent contractor agreements to be carefully drafted to prevent any “sham contracting” situations where the relationship may, in reality, resemble an employment relationship, invoking different legal responsibilities.
These agreements can typically be customised to suit different kinds of work arrangements, whether the contractor is engaged for a single project or on an ongoing basis. Moreover, they can incorporate clauses pertaining to confidentiality, intellectual property rights, and dispute resolution procedures.
Independent contractors operate under a different set of regulations than employees, since they are considered, self-employed individuals providing services under a ‘contract for services’. Here are some key regulations and laws governing independent contractors in New Zealand:
There’s no specific legislation governing language requirements in New Zealand. Generally, English is used for drafting employment documents and contracts as it is the predominant language used in the workplace. This is due to the fact that English is New Zealand’s de facto official language, with nearly the entire population speaking it either as native speakers or proficiently as a second language.
While New Zealand is home to a diverse linguistic population, including speakers of Te Reo Māori, Samoan, Northern Chinese (including Mandarin), and Hindi, English remains the primary language of commerce and government.
For international talent looking to work in New Zealand, English language proficiency is a requirement for certain types of visas, particularly those associated with skilled residence. The specific requirements can vary, but for principal applicants applying under skilled residence visas, there are minimum score requirements set for English language tests. For instance, applicants must achieve a 6.5 overall score in the International English Language Testing System (IELTS), which can be taken in either the General or Academic module.
The standards also apply to partners and dependent children aged 16 or older, who must meet minimum score requirements as specified by the visa category. For those applying under the Accredited Employer Work Visa (AEWV) category, which involves roles classified at ANZSCO levels 4 or 5, specific proofs of English proficiency are required. The requirements can involve taking tests like the IELTS, with adjustments made based on the exact nature of the work and the skills involved.
International companies with New Zealand-based employees need to comply with specific payroll guidelines. Starting April 1, 2023, employees who receive non-cash benefits, also known as fringe benefits, must include these benefits as gross income in their Employment Information – IR348 (EI) return. They also need to include any employer superannuation contributions.
Non-residents in New Zealand are required to pay the applicable corporate tax rate on their New Zealand-sourced income. Records must be maintained meticulously, including wages, time, holiday, and leave records, for a period of six years, with penalties for non-compliance up to 100,000 NZD.
Setting up payroll in New Zealand involves a series of strategic steps to ensure compliance with local employment and tax laws, thereby ensuring a seamless operation for your business.
Here are a few things you need to know:
Expanding into new markets comes with complex labour laws and regulations you need to consider — overlooking these details can lead to legal issues and reputational damage.
That is where CXC excels. With over 30 years of experience in the global employment space, we can help you find, hire, manage, and pay workers anywhere in the world without the hassle of setting up a legal entity. Our Employer of Record (EoR) solution simplifies international hiring, allowing you to focus on what truly matters: growing your business.
To hire employees in New Zealand, an employer must provide a written employment agreement, confirm the employee has the right to work, register and operate payroll correctly, and meet New Zealand’s minimum employment standards.
Every employee must have a written employment agreement. It must include required terms such as the parties involved, the work to be performed, place of work, agreed hours and pay. It must also include a clear explanation of how employment relationship problems will be resolved, the applicable personal-grievance time limits, a statement about payment for work on public holidays and, where relevant, an employee protection provision covering restructuring or the transfer of work. Fixed-term employment must be supported by a genuine reason recorded in the agreement
Employers must also register with Inland Revenue where required, deduct Pay As You Earn (PAYE) income tax from salaries and complete payday reporting.Employers must also meet their KiwiSaver enrolment, deduction and reporting obligations for eligible employees, with employer contributions made where required.
Employees must also receive minimum rights covering wages, annual holidays, public holidays, sick leave and other statutory entitlements. Employers must act in good faith, keep prescribed wage, time and leave records, provide rest and meal breaks, and meet their obligations under the Health and Safety at Work Act 2015.
For overseas companies looking to hire employees in New Zealand, an Employer of Record can manage these local employment requirements without the company establishing its own employing entity.
No. A foreign company can hire employees in New Zealand without establishing its own local entity by using an Employer of Record (EOR).
Under the Employment Relations Act 2000, employees must have a legal employer and a written employment agreement. An EOR provides that local employment structure and becomes the legal employer while the client manages the employee’s day-to-day work.
Setting up your own New Zealand company requires reserving a company name, appointing directors and shareholders, providing local company addresses, completing incorporation and registering for tax and payroll. The Companies Office currently charges NZD 10 plus GST for name reservation and NZD 118.74 plus GST for incorporation. At least one director must also meet New Zealand or qualifying Australian residency requirements. More precisely, at least one director must live in New Zealand or live in Australia and also be a director of an Australian-incorporated company
The Companies Office allows 20 working days after name reservation to complete incorporation, although a straightforward application can be completed sooner once all documents and consents are ready. The 20-working-day period is the validity period of the approved name reservation, not the standard processing time for incorporation.
Using an EOR in New Zealand avoids creating a separate employing company solely to make local hires.
Hiring an employee in New Zealand can take a few days to several weeks, depending on whether the company already has a local employment setup and whether the employee needs a work visa.
If the company already has a New Zealand entity, employer registration and payroll in place, hiring can move quickly once the employment agreement, right-to-work check and payroll information are completed.
If the company does not have a local entity or payroll setup, the process can take longer because it may first need to establish the appropriate business structure and complete tax and employer registrations. A non-resident employer may also need an Inland Revenue number, employer registration, payday-filing capability and arrangements for PAYE, KiwiSaver, ESCT and ACC.
An Employer of Record in New Zealand can shorten this process because the local employment and payroll infrastructure is already established. Once the candidate and employment terms are confirmed, onboarding can often be completed within days.
Employees who require a New Zealand work visa will usually have a longer hiring timeline. For an Accredited Employer Work Visa, the employing entity generally needs the appropriate employer accreditation, and an approved job check before the worker can complete the visa process. An EOR must therefore confirm that its accreditation and permitted employment model cover the proposed hire.
A company can hire a remote employee in New Zealand through its own local employment setup or through an Employer of Record that employs the person locally.
The employee must receive a written New Zealand employment agreement and the same minimum employment rights that apply to other employees. Working remotely does not remove requirements around pay, holidays, sick leave, payroll tax or workplace health and safety.
Employers should also document the employee’s normal place of work, working hours, equipment, expenses and remote-working arrangements in the employment agreement or supporting policy. The arrangements should also address information security, privacy, confidentiality, accident reporting, workstation safety and whether prior approval is required before the employee works from another location or country.
A home used for work can form part of the workplace for health and safety purposes. The relevant businesses must manage remote-work risks so far as reasonably practicable and, where duties overlap, consult, cooperate and coordinate with each other. These duties cannot simply be transferred to the employee through a remote-working policy.
For an overseas company without a New Zealand entity, an EOR in New Zealand can employ the remote worker locally and manage PAYE, payroll, KiwiSaver and statutory employment administration. This gives the overseas company a way to hire employees in New Zealand while continuing to manage their role, objectives and day-to-day work remotely.
A company should consider an Employer of Record in New Zealand when it wants to hire locally without setting up its own New Zealand employing entity.
This can work for organisations of any size, including enterprise companies hiring specialist employees, building a New Zealand team, entering the market or managing employees outside their existing entity footprint.
An EOR becomes the legal employer and handles the local employment agreement, payroll, PAYE, applicable KiwiSaver contributions, leave administration and ongoing employment compliance. The client continues to manage the employee’s day-to-day work and performance. Because New Zealand may treat this as a triangular employment relationship, the EOR and client should coordinate performance management, grievances, workplace changes and termination decisions.
EOR services in New Zealand can also be useful when speed matters. Instead of establishing local corporate and payroll infrastructure before making the first hire, the company can use an existing compliant employment framework.
In summary, an EOR is useful when a company needs New Zealand employees but does not want to establish or expand its own local employment infrastructure.
Employer of Record services in New Zealand commonly cost around USD 300–600 per employee per month, although pricing varies by provider and service level. Some providers charge a fixed monthly fee, while others use a percentage of employee salary. Current published market examples range from around USD 399 per employee per month to NZD 1,155 per employee per month.
The EOR fee is separate from the employee’s salary and statutory employer costs.
These additional costs can include employer KiwiSaver contributions and applicable Accident Compensation Corporation (ACC) levies. From 1 April 2026, the default KiwiSaver employee contribution and matching employer contribution increased to 3.5%, with further changes scheduled for 2028. The default employee and compulsory employer rates are scheduled to increase again to 4% from 1 April 2028. Eligible employees can apply for a temporary reduction to 3%, and employer contributions are generally subject to employer superannuation contribution tax (ESCT). KiwiSaver contribution obligations also depend on the employee’s age, membership and other statutory eligibility conditions.
ACC Work levy costs are not one universal percentage: they vary according to the employer’s industry classification, liable earnings and, where applicable, claims experience.Pricing may also vary according to headcount, benefits, immigration support and additional HR services.
When comparing EOR services in New Zealand, employers should therefore compare the total employment cost rather than the monthly EOR fee alone. The comparison should identify salary, holiday and leave costs, KiwiSaver, ACC, ESCT, benefits, GST treatment, foreign-exchange margins, deposits and one-off onboarding or termination charges.
New Zealand employers can use a trial period of up to 90 calendar days for a new employee who has never worked for that employer before. The same rules apply when an EOR employs the worker.
The trial period must be agreed and included in the employment agreement before the employee starts work. The employee must sign the agreement before beginning work; adding or signing the trial clause after employment has started will not create a valid trial period. The agreement must also explain that the employer can dismiss the employee during the trial and that the employee generally cannot bring a personal grievance relating to that dismissal.
A trial period does not remove the employee’s other employment rights, and the employer must still follow the agreed notice requirements. Notice of dismissal must be given within the trial period, although the notice period itself may finish later. A trial clause does not prevent every type of claim: rights relating to matters such as discrimination, harassment, wages, leave and health and safety continue to apply.
There is also an important immigration exception: migrant workers employed on an Accredited Employer Work Visa cannot be employed under a 90-day trial period. Accredited employers must not include a trial period in the employment terms used to support an AEWV hire.
For an Employer of Record in New Zealand, the EOR is the legal employer, so the trial clause must be correctly included in the EOR employment agreement before employment begins.
With an EOR, the individual is an employee with New Zealand employment rights. An independent contractor runs their own business and works under a contract for services rather than an employment agreement.
An EOR employee receives statutory employment protections such as minimum pay, holidays and sick leave, while the EOR manages PAYE and other applicable employer obligations.
New Zealand introduced an important new gateway test on 21 February 2026 for determining contractor status. To qualify under the test, several conditions must be met, including having a written contractor agreement, being able to work for others, having genuine flexibility over work or subcontracting, being able to decline additional work and having a reasonable opportunity to obtain independent advice.
More precisely, all gateway criteria must be satisfied. The written agreement must state that the person is an independent contractor or is not an employee; the person must be permitted to work for others; must either be able to choose when to work or lawfully subcontract the work within the test’s limits; must be able to decline additional work without ending the arrangement; and must have had a reasonable opportunity to obtain independent advice before signing.
If those conditions are not met, New Zealand’s common-law tests are used to determine the true nature of the relationship. Failing the gateway test does not automatically make the person an employee: the intention, control, integration and fundamental or economic-reality tests must then be considered. The gateway test is not retrospective to periods before 21 February 2026.
In summary, an EOR is appropriate for genuine employees; a contractor agreement should only be used where the working relationship genuinely meets New Zealand’s contractor rules. Simply describing a worker as a contractor or requiring them to submit invoices is not sufficient where the legal tests point to employment.
An EOR becomes the legal employer of the employee in New Zealand, while a PEO typically supports a company that already has its own local employing entity.
With an Employer of Record in New Zealand, the employee signs an employment agreement with the EOR. The EOR operates local payroll and manages PAYE, applicable KiwiSaver contributions, leave and employment administration. The client manages the employee’s day-to-day responsibilities.
A Professional Employer Organisation (PEO) model generally involves shared HR and payroll support while the client remains the local employer. This means the company typically needs its own New Zealand employment infrastructure.
For an overseas business entering New Zealand without an entity, an EOR is therefore usually the more relevant model. A PEO is more suitable where the company already has the structure to employ people locally but wants additional HR or payroll support. Whichever model is used, the parties should clearly document responsibility for payroll, leave, KiwiSaver, health and safety, privacy, performance management, grievances and termination.
CXC gives global companies the local employment infrastructure to hire, pay and support employees in New Zealand without establishing their own employing entity.
Through CXC’s Employer of Record in New Zealand capability, businesses can manage compliant employment agreements, onboarding, payroll, PAYE, applicable KiwiSaver contributions, leave and ongoing HR administration through one workforce partner.
CXC’s capability goes beyond processing payroll. It supports the employment lifecycle from initial hiring and employment documentation through benefits administration, employee support and compliant offboarding. This is particularly useful for enterprise organisations managing employees across multiple countries, where local requirements need to fit within a wider global workforce programme.
CXC also brings more than 30 years of contingent workforce experience and operates across 100+ countries, which gives companies the ability to use a consistent workforce model as they expand into New Zealand and other markets.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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