COUNTRY

Employment contracts in New Zealand must be in writing and be made available to the employer and the employee. Background checks are common in New Zealand.

There are no legal restrictions on working hours in New Zealand. The traditional work period is 40 hours a week, with the day commencing at 8:30 a.m. and finishing at 5 p.m. Mondays through Fridays, with a half-hour break for lunch.

Overtime pay is not legally required in New Zealand. However, an employee who works on a public holiday is entitled to 150% of their average daily pay, or a rate negotiated as part of the employment contract. Employers and employees can also agree to another day off, in lieu of payment.

Employees in New Zealand are entitled to a minimum of five days paid sick leave a year after the first six months of continuous employment. An additional five days of paid sick leave is provided after each subsequent 12-month period. Unused sick leave is carried over to the next year. However, the accumulation of sick leave is capped at 20 days. Employers pay their employees at their normal wages while on sick leave. Employers are also responsible for financial contribution to any work-related injury of their employees.

New Zealand does not have maternity leave. It provides different types of leaves that can be shared among partners under parental leave. Employees who have worked for an employer for at least 6 months are eligible for parental leave.

Bonuses in New Zealand are not mandatory but many employers pay them. New Zealand also has a minimum wage.

Employees receive four weeks of paid annual leave in New Zealand after one year of service.

In New Zealand, the public holidays are:

• New Year’s Day

• Day After New Year’s Day

• Waitangi Day

• Good Friday

• Easter Monday

• Anzac Day

• Queen’s Birthday

• Labor Day

• Christmas Day

• Boxing Day

New Zealand has public and private healthcare. Many employers offer health insurance as a benefit or option.

There are several grounds for termination in New Zealand, including:

• serious misconduct,

• repeated misconduct,

• performance issues,

• redundancy,

• incompatibility, and

• incapacity.

While a termination does not need to be in writing, employees can ask for written documentation stating the reason for their dismissal. This request can be made up to 60 days after the dismissal and, if requested, the employer has 14 days to comply. If an employer fails to comply by the deadline the terminated employee can file a grievance.

Employers are generally required to follow the same procedures for dismissing an employee either inside or outside the trial period. However, an employer with less than 20 employees is not required to provide written documentation detailing the reason for dismissing an employee within a trial period not exceeding 90 days. Further, the employee cannot file a grievance against the employer.

New Zealand does not require a specific notice period. Rather, the employment contract should specify the notice period required. If the employment contract does not provide a notice period, fair and reasonable notice must be given. What is considered fair and reasonable will depend on the type of job, length of service, common practice and other related considerations. New Zealand does not require the payment of severance upon dismissal.