Quick guide to employment basics

Published: 07 October 2024

Managing your team involves understanding your legal obligations. Here’s a simple rundown of the key employment responsibilities under New Zealand law.

Employment Responsibilities: Back to basics

Under New Zealand law, employers must:

Give all employees a written employment agreement/contract.
Pay employees at least the minimum wage for all the hours they work.
Pay employees in cash (money) unless they have agreed to a form of direct credit.
Not deduct money out of employees’ wages unless the law allows it (such as for student loan payments) or an employee gives written authorisation.

Rest breaks

Employees need regular rest and meal breaks. For people working eight hours or longer, two 10-minute breaks and an unpaid 30-minute lunch break are required. People working six hours need one 10-minute break and a 30-minute lunch break.

Annual leave

Staff are entitled to a minimum of four weeks of paid annual leave after they have worked for you for 12 months. They are also allowed 12 paid public holidays to the extent they fall on days they normally work.

Sick leave

Your team members are entitled to 10 days of sick leave per year if they (1) have been continuously employed by you for six months, or (2) over a six-month period, have worked at least an average of 10 hours a week with no less than one hour worked in every week or no less than 40 hours worked every month.

If an employee gets sick before starting their holiday, businesses must allow affected days to be taken as sick leave. If they get sick while on holiday, employers can decide whether or not to grant sick days.

IMPORTANT: In June, the government announced plans to move to a pro-rata system for sick leave and an accrual system for annual leave as part of changes to the Holidays Act 2003. Read more about the government’s proposals here.

Bereavement leave

Employees are entitled to three days of bereavement leave every 12 months, as long as they have worked for their employer continuously for six months and meet the same hourly criteria as above.

This leave covers the death of an immediate family member or if an employee or their partner has a miscarriage or stillbirth. Bereavement leave of one day is permitted if the employer accepts that the employee otherwise has a close association with the deceased or particular responsibilities for matters associated with the death.

Last but not least

All New Zealand employers must provide a workplace that is healthy, safe, and free from discrimination and bullying.
Staff must be allowed to join a union if they want to, free from any pressure.
Employees can resign at any time by notifying you they will be leaving and working out the notice period set out in their contracts.

Summary

Employment law must be taken seriously. If you’re unclear on your responsibilities on employment matters have a look at the Employment NZ website. For serious matters speak to a legal adviser to clarify your situation. If you don't have one, please contact us at Business Like NZ. We have trusted advisors in our network that can assist you.