Employment
152 articles — plain English explanations of NZ employment law.
ACC and work-related injuries: How it impacts pay
When a New Zealand employee sustains a work-related injury, the Accident Compensation Corporation (ACC) provides weekly compensation after the first week of incapacity. Employers are generally responsible for payments during the first week. The Employment Relations Act 2000 and Holidays Act 2003 govern how this impacts pay and leave entitlements.
"Alternative holidays" (Days in lieu): How they work
Alternative holidays, also known as days in lieu, are an entitlement for employees in New Zealand who work on a public holiday that would otherwise be a working day for them. This provides an additional paid day off, separate from the payment received for working the public holiday itself, which is typically at time and a half.
Bad references: Can you sue for defamation?
In New Zealand, an individual may sue for defamation if a former employer provides a false, damaging, and maliciously motivated reference. Defamation law requires a statement to be published, identify the person, and be defamatory. Employers giving references may claim qualified privilege, which protects truthful statements made without malice. The Employment Relations Act 2000 does not directly govern defamation claims.
Being fired via text message: Is it legal?
In New Zealand, while there's no specific law prohibiting dismissal by text, such a method is highly unlikely to meet the legal requirements for a fair and reasonable dismissal process. Employers must have a justifiable reason and follow a fair process, including giving the employee a chance to respond. Failure to do so can result in an unjustified dismissal claim.
Bereavement leave: Who counts as family?
Bereavement leave in New Zealand provides employees with paid time off following the death of a family member. The Holidays Act 2003 defines 'immediate family' to include a spouse, parent, child, or sibling, and their step, adoptive, and in-law equivalents. Leave for other relationships is at the employer's discretion, based on the closeness of the relationship and impact on the employee.
Can an employer ask about your criminal record? (Clean Slate Act)
In New Zealand, the Clean Slate Act 2004 generally means individuals are not required to disclose eligible past convictions to employers, and employers cannot ask about them or consider them. However, specific exceptions exist for certain sensitive roles where full disclosure of criminal history is legally mandated.
Can an employer ask for a medical certificate for one day off?
In New Zealand, an employer can ask for a medical certificate for an employee's one-day absence due to sickness or injury. However, if the absence is for less than three consecutive calendar days, the employer generally must inform the employee promptly and pay for the reasonable costs of obtaining the certificate. For absences of three or more consecutive calendar days, the employer is not required to cover the cost.
Can an employer delay your payday?
In New Zealand, employers are legally obligated to pay wages on time and at agreed-upon intervals. Unilateral delays by an employer are generally not permitted. If an employer delays payday, employees may have grounds to raise a personal grievance or apply to the Employment Relations Authority for recovery of unpaid wages and potentially penalties against the employer.
Can an employer extend a 90-day trial?
In New Zealand, a statutory 90-day trial period cannot be extended. It is a strict 90-day maximum from the start of employment. If an employer wishes to dismiss an employee under a trial period, they must do so within these 90 days. After this period, standard employment law protections apply.
Can an employer fire you for going bankrupt?
In New Zealand, an employer generally cannot dismiss an employee solely for becoming bankrupt. Dismissal must be justified, meaning there's a genuine reason related to the employee's ability to do the job, their conduct, or the employer's business, and a fair process must be followed. Bankruptcy might only be relevant in specific roles involving financial trust or where it genuinely impacts business operations.
Can an employer fire you for poor performance without notice?
In New Zealand, an employer generally cannot dismiss an employee for poor performance without notice. A fair and reasonable process involving warnings, opportunities for improvement, and support is typically required. Dismissal without notice, known as summary dismissal, is usually reserved for serious misconduct, not for ordinary poor performance. Any dismissal must be justified.
Can an employer force you to sign an agreement?
In New Zealand, employers cannot lawfully force an employee to sign an agreement. Employment agreements require genuine consent, facilitated by the legal obligation of good faith and the employee's right to seek independent advice before signing. Agreements signed under duress may be challenged.
Can an employer force you to take annual leave?
While generally annual leave in New Zealand requires agreement, an employer can compel an employee to take it under specific circumstances. This typically involves giving at least 14 days' notice and occurs where no agreement can be reached or during an annual close-down period, as outlined in the Holidays Act 2003.
Can an employer force you to work on a public holiday?
In New Zealand, an employer can only require an employee to work on a public holiday if it's an 'otherwise working day' and their employment agreement allows it. If not, an employee can refuse without penalty. Working on a public holiday generally entitles an employee to time and a half pay, and often an alternative holiday.
Can an employer monitor your work emails?
In New Zealand, employers can monitor work emails, but this is subject to significant legal obligations under the Privacy Act 2020 and the Employment Relations Act 2000. Monitoring must generally be for a legitimate business purpose, conducted fairly, and employees should be transparently informed about such practices through clear workplace policies. Reasonable expectations of privacy play a crucial role.
Can an employer pay you in goods or accommodation instead of cash?
In New Zealand, employers must generally pay wages in money, not goods or accommodation. Agreements to pay in kind are usually illegal and void. While specific, capped deductions for employer-provided board and lodging can be made from cash wages, the minimum wage must still be met in money after any such deductions.
Can an employer reduce your hours without consent?
An employer generally cannot unilaterally reduce an employee's hours in New Zealand without consent, as hours are a key term of the employment agreement. Any proposed changes require the employer to act in good faith, including consulting with the employee and considering their feedback. Failure to do so may lead to a personal grievance claim.
Can an employer reject a resignation?
An employer in New Zealand generally cannot reject an employee's resignation. Once an employee clearly communicates their intention to resign, it is usually a unilateral act that takes effect, typically after any agreed notice period. Employers can enforce notice periods but cannot prevent the resignation itself from occurring.
Can sick leave be carried over to the next year?
In New Zealand, unused sick leave can be carried over to subsequent 12-month periods. Employees are entitled to 10 days of sick leave annually and can accumulate a maximum of 20 unused sick days, allowing for up to 30 days to be available at any given time under the Holidays Act 2003.
Can you be fired for something you did outside of work?
In New Zealand, an employee can potentially be dismissed for actions taken outside of work if those actions significantly impact their employment, the employer's business, or breach specific employment terms. The dismissal must be justified, meaning a fair and reasonable employer would have acted similarly after a fair process, considering all circumstances.
Can you be fired for taking too much sick leave?
While employees are entitled to sick leave, persistent or frequent unavailability for work due to illness, even when legitimate, can lead to employment consequences if it impacts job performance and a fair process is followed by the employer, as per New Zealand employment law principles.
Can you be made redundant while on parental leave?
An employee on parental leave in New Zealand can be made redundant if the redundancy is genuine and unrelated to their leave. Employers must follow a fair process, act in good faith, and explore alternative roles, as outlined by the Parental Leave and Employment Protection Act 1987 and the Employment Relations Act 2000.
Can you record a disciplinary meeting without telling your boss?
Recording a disciplinary meeting in New Zealand without an employer's knowledge is generally not illegal but can be a breach of the duty of good faith under the Employment Relations Act 2000. Such recordings may be admissible in employment disputes, but their secret nature can negatively impact the party who made them and the employment relationship.
Can you refuse to do unsafe work?
Workers in New Zealand have the right to refuse or cease unsafe work if they have reasonable grounds to believe it poses a serious risk to their health or safety. Employers (PCBUs) must ensure a safe workplace and cannot take discriminatory action against workers for exercising this right. Both workers and employers have specific duties under health and safety legislation.
Can you refuse to sign a PIP?
While not legally compelled to sign a Performance Improvement Plan (PIP) if it implies agreement, employees must still act in good faith during performance discussions. Employers also have a duty of good faith to ensure a fair process. Refusal to engage constructively, even if not signing, could have implications for the employment relationship.
Can you withdraw a resignation given in the heat of the moment?
Withdrawing a 'heat of the moment' resignation in New Zealand depends on specific circumstances, including promptness of withdrawal and the employer's good faith obligations. An employer's refusal to accept such a withdrawal may lead to a personal grievance for unjustified dismissal under the Employment Relations Act 2000, where fairness and reasonableness are assessed.
Can your employer dictate what you do on your unpaid break?
Employers generally have limited ability to dictate what an employee does during an unpaid break. During these breaks, employees are typically considered off duty and are not required to work. Overly restrictive employer directives during an unpaid break may breach good faith obligations or could lead to the break being considered working time.
Cashing out annual leave: What are the limits?
In New Zealand, employees can request to 'cash out' up to one week of their annual leave entitlement per year, meaning they receive payment instead of taking time off. Employers can agree or refuse these requests, and any agreement must be in writing. Other types of leave, like sick leave, cannot be cashed out.
Casual employment: What defines a true casual worker?
In New Zealand, a true casual worker has no guaranteed hours or expectation of ongoing work, and each work period is a separate engagement. They are still entitled to minimum employment rights, including a written agreement and holiday pay. The actual nature of the work relationship, not just the contract's label, determines if an employee is truly casual.
Changing the terms of an employment agreement
Changing the terms of an employment agreement in New Zealand generally requires the mutual agreement of both the employer and the employee. Employers must act in good faith, providing relevant information and an opportunity for consultation and independent advice. Unilateral changes by an employer without agreement can lead to a personal grievance claim.
Compensation for humiliation, loss of dignity, and injury to feelings
In New Zealand employment law, employees can seek compensation for humiliation, loss of dignity, and injury to feelings if they have an unjustified personal grievance. This compensation, awarded by the Employment Relations Authority or Employment Court, aims to redress non-financial harm caused by an employer's unjustified actions, such as an unjustified dismissal or disadvantage.
Conflict of interest in employment
A conflict of interest in New Zealand employment arises when an employee's personal interests or duties to another party conflict with their obligations to their employer. The Employment Relations Act 2000's good faith principle requires transparency and honest conduct, and specific laws like the Secret Commissions Act 1910 address related offences. Employers typically manage conflicts through employment agreements and policies.
Costs in the Employment Relations Authority: Who pays?
In New Zealand's Employment Relations Authority (ERA), the decision to award costs is discretionary. While parties generally bear their own expenses, the ERA can order one party to contribute to the costs of another, considering factors like the case's complexity, parties' conduct, and success of claims. This power is outlined in the Employment Relations Act 2000.
Dealing with a boss who micro-manages
While micro-management isn't illegal, its effects can trigger legal protections. New Zealand employers must act in good faith and provide a safe workplace, including psychological safety. Employees may raise a personal grievance if micro-management leads to unjustified disadvantage or constructive dismissal. Resolving issues typically involves discussion, mediation, or the Employment Relations Authority.
Deducting money from final pay: Legal rules
In New Zealand, employers generally cannot deduct money from an employee's final pay without the employee's written agreement or explicit legal authority. Lawful deductions include tax, student loan repayments, and child support, as well as specific agreed-upon deductions for overpayments or employer-provided goods/services.
Deductions from pay: When is it legal?
In New Zealand, employers can only make deductions from an employee's pay if there's a written agreement from the employee or if the deduction is specifically authorised by law. Unauthorised deductions are unlawful. Employees have rights to challenge improper deductions, typically through a personal grievance process starting with mediation.
Discrimination in hiring: Age, gender, and race
New Zealand law prohibits discrimination in hiring based on characteristics like age, gender, and race. The Human Rights Act 1993 outlines these protections, making it unlawful for employers to discriminate during recruitment processes. The Employment Relations Act 2000 allows individuals to raise a personal grievance if they experience discrimination in employment.
Do employers have to give warnings before firing someone?
In New Zealand, employers generally need to follow a fair process before dismissal, which often includes warnings for misconduct or poor performance. While serious misconduct may allow for dismissal without prior warnings, a thorough investigation and opportunity for the employee to respond are still legally required. The decision must be one a fair and reasonable employer could have made.
Do employers have to pay redundancy compensation?
In New Zealand, employers are generally not legally required to pay redundancy compensation unless it is explicitly stated in an employee's individual or collective employment agreement. The law focuses on the employer conducting a fair and good faith process when a redundancy occurs.
Do you get paid for travel time to work?
In New Zealand, travel time to and from an employee's usual workplace is generally not paid, as it's considered a private cost. However, travel *during* work, travel integral to the job, or travel required by the employer outside the usual commute may be considered work time and must be paid, often as specified in an employment agreement.
Do you still get paid notice under a 90-day trial?
Even if dismissed during a 90-day trial period, an employee is generally entitled to be paid for any notice period specified in their employment agreement. While a 90-day trial limits claims for unjustified dismissal, it does not negate other contractual payment entitlements. All work performed up to the termination date must also be paid.
Drug testing in the workplace: When is it legal?
Drug testing in New Zealand workplaces is legally permissible under certain conditions, primarily driven by health and safety concerns, and must comply with the Employment Relations Act, Health and Safety at Work Act, and Privacy Act. Policies must be reasonable, clearly communicated, and developed in good faith. Random testing is generally only justified in genuinely safety-sensitive roles.
Employer accreditation for hiring migrants
Employer accreditation is a scheme allowing New Zealand businesses to hire migrant workers under the Accredited Employer Work Visa. It involves meeting specific criteria related to financial viability, compliance with immigration and employment laws, and making genuine job offers. Accredited employers must adhere to New Zealand's general employment standards, ensuring fair treatment and conditions for all employees, including migrants.
Employer obligations to provide a safe workplace
In New Zealand, employers, known as PCBUs, have a primary duty under the Health and Safety at Work Act 2015 to ensure, so far as is reasonably practicable, the health and safety of their workers and others affected by their work. This involves providing a safe environment, safe equipment, and necessary training and supervision.
Employer-Initiated Performance Improvement Plans in NZ
An employer-initiated Performance Improvement Plan (PIP) is a formal process to address an employee's performance. Under New Zealand law, employers must act in good faith, clearly communicate concerns, provide support, and allow the employee a genuine opportunity to respond. Any actions taken must be fair and reasonable, aligning with obligations under the Employment Relations Act 2000.
Employment during closedowns (e.g., Christmas)
During business closedowns, like for Christmas, employers can require employees to take annual leave if their employment agreement allows and proper notice is given. If employees lack sufficient leave, agreement for advanced or unpaid leave is needed; otherwise, the employer may still be required to pay. Public holidays falling within a closedown are paid if they would otherwise be working days.
Equal Pay Act: Understanding pay equity
New Zealand's Equal Pay Act 1972, significantly updated by the 2020 Amendment, mandates that men and women receive equal pay for performing work of equal value, regardless of the job's nature. It establishes a process for raising and resolving pay equity claims, ensuring wages are not influenced by gender-based undervaluation of work.
Ergonomics and desk equipment: Who pays for WFH setups?
Employers have a duty under New Zealand law to ensure the health and safety of workers, even in home-based work setups. This includes addressing ergonomic risks and, where reasonably practicable, providing or contributing to necessary equipment to maintain a safe working environment. Specific arrangements for equipment are often detailed in employment agreements.
Essential workers and strike actions
New Zealand law defines certain services as 'essential services', which have specific rules regarding strike actions. While the right to strike exists, essential service workers and their unions must follow strict notice periods and agree with employers on minimum service levels to be maintained during a strike. Failure to comply can result in an unlawful strike.
Family Violence Leave: Rights for victims
Eligible employees in New Zealand affected by family violence can take 10 days of paid family violence leave per year after 6 months of employment. Employers must keep related information confidential and cannot take adverse action against an employee for using this leave. Employees can also request short-term flexible work arrangements.
Final pay: What must be included when you leave?
When employment ends in New Zealand, an employee's final pay typically includes unpaid wages, accrued annual leave, and any other contractual entitlements. Unused sick leave and bereavement leave are generally not paid out. Deductions for tax, KiwiSaver, and student loan obligations are made as required by law.
Fixed-term vs. Permanent employment: Legal rules
New Zealand employment law distinguishes between permanent and fixed-term employment. Fixed-term agreements require a genuine reason, specified in writing, for the employment to end on a particular date or task completion. If these conditions are not met, the employment may be considered permanent. Both types of employees generally have the same core employment rights and protections.
Flexible working arrangements: Employee rights to ask
Employees in New Zealand have a legal right to request flexible working arrangements from their employer. The Employment Relations Act 2000 outlines the process, requiring requests to be in writing and employers to respond within a specified timeframe, considering certain grounds for refusal. Disputes can be referred to mediation.
"Garden leave" explained
Garden leave is a period where an employee remains employed but does not attend work, usually during a notice period. It must be stipulated in an employment agreement. During garden leave, employees typically continue to receive wages and benefits, while remaining subject to contractual obligations like confidentiality.
Getting a reference: Is an employer legally required to give one?
New Zealand law generally does not require employers to provide references. However, if a reference is given, it must be accurate and truthful to avoid legal issues. Employees typically have the right to access references provided about them under privacy laws.
Getting paid for attending mandatory training
In New Zealand, if an employer requires an employee to attend training, it is generally considered 'work' and must be paid. This includes training held outside normal working hours. All work performed, including mandatory training, must be remunerated at least at the current minimum wage rate, upholding fundamental employment rights.
Having a support person at a disciplinary meeting
In New Zealand, while there isn't a specific section in law granting a 'right' to a support person at disciplinary meetings, the duty of good faith and the requirement for a fair process under the Employment Relations Act 2000 mean employers must generally allow an employee to have one. Denying a support person without good reason can make a disciplinary process unfair.
Health and Safety at Work Act: Employee duties
Workers in New Zealand have specific health and safety duties under the Health and Safety at Work Act 2015. These include taking reasonable care for their own safety and others', complying with instructions, and cooperating with health and safety policies. This contributes to a safe working environment for everyone.
How does annual leave accrue in New Zealand?
In New Zealand, employees become entitled to four weeks of annual leave after 12 months of continuous employment. This leave is paid at their ordinary weekly pay or an average of their earnings. If employment ends before 12 months, an employee is typically paid 8% of their gross earnings for untaken leave.
How long do written warnings stay on your record?
New Zealand employment law does not specify a fixed duration for how long written warnings stay on an employee's record. The Employment Relations Act 2000 requires employers to act in good faith and follow fair processes. While warnings remain on file, their relevance diminishes over time, and employees can challenge unjustified warnings.
How long should a fair PIP last?
In New Zealand employment law, a Performance Improvement Plan (PIP) is a tool used by employers to address poor performance, forming part of a fair process. There is no legally prescribed duration for a PIP; it must be reasonable and allow a genuine opportunity for the employee to improve, adhering to the employer's good faith obligations under the Employment Relations Act 2000.
How mediation works in employment disputes
Mediation in New Zealand employment disputes is a confidential process facilitated by an independent mediator from MBIE to help resolve 'employment relationship problems'. Parties engage in good faith to reach a binding settlement agreement. If no agreement is reached, the matter may proceed to the Employment Relations Authority. The process is governed primarily by the Employment Relations Act 2000.
How much bereavement leave do you get?
In New Zealand, eligible employees are entitled to paid bereavement leave. Three days are granted for the death of a close relative, such as a spouse, child, or parent. One day is available for other bereavements, where the employer accepts the employee has suffered a loss. Employers may grant additional leave at their discretion.
How to calculate holiday pay for variable hours
In New Zealand, employees with variable hours are entitled to annual holiday pay. This pay is calculated as the greater of their ordinary weekly pay or average weekly earnings, based on specific look-back periods, to ensure fair compensation for their time off.
How to challenge an unfair dismissal at the ERA
In New Zealand, an employee can challenge an unjustified dismissal by raising a personal grievance with their employer within 90 days. If unresolved, the matter typically proceeds to mediation. If mediation fails, an application can be made to the Employment Relations Authority (ERA), which investigates and issues a determination, potentially ordering remedies like compensation or reinstatement.
How to file a personal grievance
A personal grievance is a complaint an employee has against their employer, such as for unjustifiable dismissal or disadvantage. It must generally be raised within 90 days. The process typically involves raising the grievance with the employer, followed by mediation, and potentially referral to the Employment Relations Authority or Employment Court.
How to officially report workplace bullying
Workplace bullying in New Zealand is addressed through an employer's duty of good faith and obligation to ensure health and safety. Reporting typically involves internal processes, followed by external avenues like the Employment Relations Authority for employment relationship problems or WorkSafe New Zealand for health and safety risks.
Independent Contractor vs. Employee: The legal tests
In New Zealand, the distinction between an independent contractor and an employee determines legal rights and obligations. The law assesses the "real nature of the relationship" rather than just the contract label, considering factors like control, integration, and whether the person is in business on their own account, as outlined in the Employment Relations Act 2000.
Individual vs. Collective Employment Agreements
New Zealand employment law establishes two main types of agreements: Individual Employment Agreements (IEAs) and Collective Employment Agreements (CEAs). Both outline terms and conditions, but CEAs are negotiated by unions on behalf of multiple employees, while IEAs are between an employer and an individual. All agreements must adhere to minimum statutory entitlements and the principle of good faith.
Is your boss setting you up to fail? How to challenge an unfair PIP
In New Zealand, employers must act in good faith when managing employee performance, including through Performance Improvement Plans (PIPs). Employees can challenge an unfair PIP by raising a personal grievance for unjustifiable disadvantage, requiring employers to demonstrate both procedural fairness and substantive justification for their actions, adhering to standards set by the Employment Relations Act 2000.
Jury service: Does your employer have to pay you?
New Zealand law generally does not require employers to pay employees for time spent on jury service. Employees are protected from penalisation for attending jury service and receive attendance fees and allowances from the Ministry of Justice. Employer payment for jury service often depends on the individual employment agreement or workplace policies.
Keep in touch days during parental leave
Keep-in-touch (KIT) days allow employees on parental leave to work limited hours for their employer without affecting their parental leave entitlement. Both parties must agree, specifying the work details and hours. There are restrictions on when KIT days can be worked and a maximum of 64 hours applies. Payment for this work is required by the employer.
Kiwisaver employer contributions: Legal requirements
Employers in New Zealand are generally required to contribute at least 3% of an eligible employee's gross salary to their KiwiSaver scheme. This obligation applies if the employee is over 18, under 65, and making their own contributions, unless specific exemptions apply. These requirements are primarily governed by the KiwiSaver Act 2006.
Leave for military or emergency service volunteers
New Zealand law protects employees who volunteer for military or emergency services. The Volunteers Employment Protection Act 1973, alongside other legislation, requires employers to grant leave for such service and generally ensures job protection and reinstatement. Employers are typically not obligated to pay wages for time spent on volunteer duties.
Lockouts by employers: When are they permitted?
In New Zealand, an employer's lockout is a form of industrial action, where employees are prevented from working to compel them to accept employment terms. Lockouts are generally lawful only when engaged in for the purpose of concluding a collective agreement and typically require specific notice. Unlawful lockouts can lead to penalties.
Medical incapacity: Firing an employee who is too sick to work
Employers considering dismissal due to an employee's medical incapacity must follow a fair and reasonable process. This involves acting in good faith, gathering relevant medical information with consent, exploring reasonable accommodations, and providing the employee an opportunity to respond before making a decision. Termination must be the last resort, justified by the employee's inability to perform their role.
Mental health days: Are they considered sick leave?
In New Zealand, taking a 'mental health day' generally falls under an employee's entitlement to sick leave. The law recognises mental health conditions as a valid reason for taking sick leave, similar to physical illness or injury. Employees typically become eligible for 10 days of sick leave per year after six months of continuous employment, which can be used for their own or a dependent's illness.
Migrant worker exploitation: Reporting and rights
Migrant workers in New Zealand have specific legal rights and protections against exploitation under various laws. These include entitlements to minimum wage, written employment agreements, and safe workplaces. Exploitation can be reported to authorities like the Labour Inspectorate or Immigration New Zealand, and a special visa may be available for victims. Employers face significant penalties for non-compliance.
Minimum wage laws: Rates and exemptions
New Zealand's minimum wage laws ensure workers receive a minimum hourly rate, with different rates for adult, starting-out, and training workers. Specific exemptions exist for certain individuals. The Minimum Wage Act 1983 and annual Minimum Wage Orders define these rates and employer obligations.
Minimum Wage in New Zealand: Current Rates and Rules
New Zealand's minimum wage ensures a baseline income for workers. As of April 1, 2024, the adult minimum wage is $23.15 per hour. Specific lower rates, the starting-out wage and training wage (both $18.52 per hour), apply to eligible workers aged 16-19 or those undertaking approved industry training, as stipulated by the Minimum Wage Act 1983 and associated orders.
Mondayisation of public holidays explained
Mondayisation in New Zealand shifts public holidays falling on a weekend to the following Monday (or Tuesday) if that weekend day is not an employee's usual working day. Employees receive their entitlements, such as paid time off or penal rates and an alternative holiday if they work, for one observed public holiday. This ensures fair treatment for all employees regardless of their standard working pattern.
Moonlighting: Can you have a second job?
Generally, New Zealand law does not prohibit having a second job unless the primary employment agreement or an employee's duty of good faith imposes restrictions. Employers can include clauses about conflicts of interest, confidentiality, or exclusivity in agreements. Health and safety duties also apply, requiring consideration of fatigue from multiple jobs.
Non-disclosure agreements (NDAs) in employment
Non-disclosure agreements (NDAs) in New Zealand employment protect confidential information. While generally enforceable, NDAs cannot override an employee's right to raise a personal grievance or make a protected disclosure (whistleblowing) about serious wrongdoing. NDAs in personal grievance settlements require independent legal advice for validity.
Opting out of Kiwisaver: Timelines and rules
Individuals automatically enrolled in KiwiSaver can opt out within a specific timeframe, typically between day 14 and day 56 of employment. Employers must process opt-out requests and refund contributions made during this period. Missing the opt-out window means a person can apply for a contributions holiday instead.
Overpayment: Does an employee have to pay it back?
Employees generally have an obligation to repay overpaid wages. While the payment itself might be a mistake, employers are restricted in how they can recover the money, usually requiring employee consent or a court/tribunal order for deductions from future wages. Both parties must act in good faith when resolving overpayment issues.
Parental leave: Who is eligible for paid leave?
Paid parental leave in New Zealand is a government payment for primary carers. Eligibility requires meeting a work test, typically working at least 10 hours per week for 26 weeks within a 6 or 12-month period before the child's arrival, applicable to both employees and self-employed individuals.
Pay secrecy clauses: Are they banned in NZ?
While not explicitly banned, pay secrecy clauses are largely unenforceable in New Zealand due to recent law changes. Employees are now legally entitled to discuss their pay with colleagues, and employers cannot prohibit these discussions or retaliate against employees for doing so. This aims to foster greater pay transparency in the workplace.
PIPs vs. Disciplinary action: Understanding the difference
Performance Improvement Plans (PIPs) address genuine performance concerns, aiming to support improvement within the employment relationship. Disciplinary action, conversely, addresses issues of misconduct or capability that may breach employment obligations. Both processes must uphold good faith and fair procedures, allowing employees to respond to concerns before decisions are made.
Probationary periods vs. 90-day trials
Probationary periods are contractual agreements allowing an employer to assess suitability, where employees retain full unjustified dismissal rights. 90-day trial periods, for employers with fewer than 20 staff, can prevent an employee from raising a personal grievance for unjustified dismissal if validly agreed upon in writing before employment begins.
Public holidays: When do you get time-and-a-half?
In New Zealand, employees working on a public holiday that would otherwise be a working day are generally entitled to be paid at least time-and-a-half for the hours worked. They are also typically granted an alternative holiday, sometimes called a day in lieu, to be taken at a later date.
Redeployment: An employer's obligation during restructuring
During restructuring, New Zealand employers must act in good faith by genuinely considering redeploying employees whose roles are at risk of redundancy. This involves active consultation, providing relevant information, and exploring suitable alternative positions. Failure to follow a fair process and consider alternatives can lead to an unjustified dismissal claim under the Employment Relations Act 2000.
Redundancy law: When is a redundancy genuine?
A genuine redundancy occurs when an employer genuinely decides, on reasonable grounds, that an employee's position is no longer needed due to legitimate business reasons. Employers must act in good faith, consult with affected employees, and genuinely consider their feedback throughout the process. Employees have rights to fair treatment and may challenge unjustified redundancy dismissals.
Reporting near-misses and workplace injuries
In New Zealand, employers (Persons Conducting a Business or Undertaking - PCBUs) have a legal obligation under the Health and Safety at Work Act 2015 to notify WorkSafe of serious workplace injuries, illnesses, or deaths (notifiable events) and serious near-misses (notifiable incidents). Workers also have duties to report hazards and incidents, and rights to a safe workplace without discrimination. The Employment Relations Act 2000's good faith provisions also underpin how workplace safety matters are handled.
Resignation: How much notice do you have to give?
In New Zealand, the notice period an employee must give when resigning is primarily set out in their individual or collective employment agreement. If an agreement specifies a period, that is the required notice. The principle of good faith applies to the resignation process.
Resolving conflicts between coworkers
In New Zealand, resolving coworker conflicts involves both employers and employees adhering to good faith obligations under the Employment Relations Act 2000. Employers must provide a safe workplace and robust dispute resolution processes. Employees are expected to raise concerns constructively. Formal options like mediation and personal grievances are available if informal resolution fails.
Rest breaks and meal breaks: What are the legal minimums?
New Zealand law mandates minimum rest and meal breaks for employees, determined by hours worked. Rest breaks are generally paid, while meal breaks are typically unpaid. Employers must provide these breaks, or compensate employees if they are required to work during them. Alternative break arrangements can be agreed upon if certain conditions are met.
Restraint of trade clauses: Are they enforceable in NZ?
Restraint of trade clauses in New Zealand employment agreements restrict an employee's activities after their employment ends. While the Employment Relations Act 2000 governs employment disputes, the specific legal criteria for a clause's enforceability are primarily based on common law principles. Disputes regarding these clauses are resolved by the Employment Relations Authority or Employment Court.
Returning to work after parental leave: Job protection
In New Zealand, employees returning from parental leave generally have a right to return to their former job or a comparable position. This protection is primarily governed by the Parental Leave and Employment Protection Act 1987, ensuring job security while on leave, provided certain conditions regarding service and notice are met.
Returning to work on light duties after an injury
In New Zealand, returning to work on light duties after an injury involves obligations of good faith from both employers and employees. Employers must consider providing modified duties or roles, supported by medical advice, while ensuring health and safety. Accident Compensation Corporation (ACC) often assists with rehabilitation and compensation. Discrimination based on injury-related disability is prohibited.
Salaried workers and minimum wage: Calculating hourly rate
Salaried workers in New Zealand must receive at least the minimum wage for all hours worked. An employer determines compliance by calculating the employee's effective hourly rate, which is the total salary paid divided by the total hours worked in that pay period. Employment agreements should specify ordinary working hours.
Selling a business: What happens to the employees?
When a New Zealand business is sold, employees' job continuity depends on their status. 'Vulnerable employees' in specific services have a right to transfer to the new employer or choose redundancy. Other employees' jobs do not automatically transfer and may be made redundant. All employers must act in good faith and consult with affected staff.
Serious misconduct: Examples and procedures
Serious misconduct in New Zealand employment law refers to actions so severe they fundamentally breach the employment relationship, potentially leading to dismissal. Employers must follow a fair process, including a thorough investigation and giving the employee an opportunity to respond, guided by the principle of good faith. Employees have the right to raise a personal grievance if they believe a dismissal was unjustified.
Sexual harassment in the workplace: Employer liability
Employers in New Zealand are legally obligated to prevent and address sexual harassment in the workplace. They can be held directly or vicariously liable for such conduct by employees. Key legislation includes the Employment Relations Act 2000, Human Rights Act 1993, and Health and Safety at Work Act 2015, which impose duties for prevention, investigation, and resolution of complaints.
Sham contracting: What it is and penalties for employers
Sham contracting in New Zealand occurs when an employment relationship is falsely labelled as an independent contractor relationship to avoid employer obligations. The law focuses on the 'real nature' of the work relationship, not just the label. Employers found to be sham contracting face significant penalties, including fines and orders to pay back entitlements.
Sick leave entitlements: Who gets it and when?
New Zealand employees are entitled to 10 days of paid sick leave per 12-month period after six months of continuous employment. Sick leave can be used for an employee's illness or injury, or to care for a dependent. Unused leave can accumulate up to 20 days, providing a safety net for employees.
Social media policies: Firing over a Facebook post
Dismissal in New Zealand for social media posts must be justified, involving both a fair process and a reasonable decision. Employers often use social media policies to set clear expectations. Employees can raise a personal grievance if they believe their dismissal was unjustified, relying on protections under the Employment Relations Act 2000.
Starting-out wage and Training wage explained
New Zealand law includes specific minimum pay rates called the starting-out wage and training wage. The starting-out wage applies to eligible young employees new to the workforce, while the training wage applies to employees undertaking approved industry training. Both are set as a percentage of the adult minimum wage and have specific eligibility and duration criteria.
Summary dismissal (firing on the spot): When is it legal?
Summary dismissal, or 'firing on the spot', is a serious employment action in New Zealand reserved for cases of serious employee misconduct. Employers must follow a fair process and meet the 'justification test' under the Employment Relations Act 2000, acting in good faith. Failure to do so can result in an unjustified dismissal claim.
Taking sick leave to care for dependents
Employees in New Zealand can use sick leave to care for themselves or a sick dependent, such as a spouse, partner, or child. Entitlement is 10 days per year after 6 months of employment, and unused leave can accumulate. Employees must notify their employer and may need to provide proof of sickness.
Taking time off to vote: Employer obligations
New Zealand law allows employees paid time off during working hours to vote in parliamentary and local elections. Employers must permit a reasonable period for voting and cannot penalise staff for exercising this right. This entitlement ensures all eligible workers can participate in democratic processes without financial detriment or fear of reprisal from their employer.
Taking unpaid leave: Rules and agreements
Unpaid leave in New Zealand is primarily granted by specific statutory entitlements, such as parental leave, or through mutual agreement between an employer and employee. It is not generally an automatic right beyond these legal minimums or contractual provisions. The Employment Relations Act 2000's good faith obligations apply to discussions and agreements about unpaid leave.
The 8% holiday pay rule for casual workers
The '8% holiday pay rule' applies to employees whose work is genuinely intermittent or irregular, or on fixed-term contracts under 12 months. Instead of accruing annual leave, they receive 8% of their gross earnings as holiday pay with each pay. This arrangement requires a written agreement and is outlined in the Holidays Act 2003.
The 90-day extension for reporting sexual harassment grievances
New Zealand employment law provides a specific extension for reporting sexual harassment grievances. While a personal grievance generally must be raised within 90 days, the Employment Relations Authority can extend this period by up to 9 months for sexual harassment claims if specific criteria are met, acknowledging the sensitive nature of such complaints.
The consultation process for redundancy
In New Zealand, employers undertaking redundancy must follow a consultation process guided by good faith obligations. This involves genuinely discussing proposed changes, providing relevant information, and considering employee feedback before making a final decision. Failure to conduct a fair process can lead to an unjustified dismissal claim.
The disciplinary process: Steps an employer must follow
Employers in New Zealand must follow a fair disciplinary process, underpinned by good faith principles. This involves conducting a thorough investigation, clearly informing the employee of allegations, providing all relevant information, and giving them a genuine opportunity to respond with a support person or representative. Decisions must be reasonable and justifiable.
The principle of "Good Faith" in NZ employment law
Good faith is a fundamental principle in New Zealand employment law, requiring employers and employees to be active, constructive, responsive, and honest in all aspects of their employment relationship. This duty applies from the start of employment through to its conclusion, including during bargaining and dispute resolution, fostering sound employment relationships.
The right to be represented by an advocate or union
New Zealand employment law provides employees and employers the right to choose representation by an advocate or union in employment matters. This right, central to the Employment Relations Act 2000's good faith principle, applies across various situations from collective bargaining to dispute resolution and personal grievances, ensuring fair processes.
The right to respond to allegations of misconduct
New Zealand employees have a legal right to respond to allegations of misconduct. This right stems from the statutory good faith obligation requiring employers to provide information, allow a reasonable opportunity to explain, and genuinely consider an employee's response before making a decision. Failing to follow a fair process can lead to an unjustified dismissal or disadvantage.
Time limits for raising a personal grievance (90-day rule)
In New Zealand employment law, a personal grievance, which is a complaint an employee has against their employer, must generally be raised with the employer within 90 days from the date the action occurred or came to the employee's attention. Failure to meet this deadline may prevent the grievance from being pursued, though exceptions exist if there are reasonable grounds for delay.
Tools of the trade allowances
Tools of the trade allowances are payments from employers to cover work-related equipment costs. Employment agreements primarily govern these allowances. Employers must ensure tool costs do not reduce an employee's effective wage below minimum wage or charge for health and safety equipment. Regular allowances are typically included in gross earnings for holiday pay calculations.
Unjustified Dismissal in New Zealand: What the Law Says
In New Zealand, an unjustified dismissal occurs when an employer's actions and the process followed for dismissal were not what a fair and reasonable employer could have done in all circumstances. Both the reason for dismissal (substantive justification) and the fairness of the process (procedural justification) are assessed against this standard.
Uniforms and dress codes: Who pays?
In New Zealand, employers typically bear the cost of uniforms if they are required for a job. Deductions from an employee's wages for uniform costs are generally prohibited unless there's a written agreement and the deduction doesn't reduce pay below the minimum wage. If a uniform is Personal Protective Equipment, the employer must provide it.
Union rights and access to the workplace
New Zealand law upholds employees' freedom to join or not join a union. Registered unions have specific rights for their officials to access workplaces to engage with members and recruit, provided they give reasonable notice, act at reasonable times, and do not unduly disrupt operations. Employers are prohibited from obstructing this access.
Unpaid extended parental leave rights
Eligible employees in New Zealand are entitled to unpaid extended parental leave following the birth or adoption of a child. Governed by the Parental Leave and Employment Protection Act 1987, this leave can extend up to 52 weeks, depending on the employee's service length. Employees must provide adequate notice, and employers generally must hold their position or an equivalent job.
Unpaid trials and "work tests": Are they legal?
In New Zealand, individuals performing productive work for a business are generally considered employees and must be paid at least the minimum wage. Unpaid "work tests" or trial periods are usually unlawful if they involve productive work that benefits the employer. Short, supervised assessments that do not involve productive work may be permissible.
Vehicle allowances and mileage reimbursement
In New Zealand, vehicle allowances and mileage reimbursements are governed by employment agreements and tax law. Allowances are fixed payments, potentially taxable, while reimbursements cover actual work expenses and can be tax-exempt if meeting specific Inland Revenue Department (IRD) criteria and rates. Employers and employees must agree on these terms in good faith.
Verbal employment agreements: Are they legally binding?
In New Zealand, while verbal agreements can establish an employment relationship, the Employment Relations Act 2000 legally requires all employment agreements to be in writing. Despite this, some terms may be implied if no written agreement exists. Written agreements provide clarity on rights and obligations, helping prevent disputes.
What are the rules around trial periods for migrant workers?
Trial periods in NZ employment law allow employers to dismiss new employees within 90 days without a personal grievance for unjustified dismissal. These periods must be in writing and agreed upon before work starts. For migrant workers, these rules apply equally, though visa implications can be significant. Other fundamental employment rights, such as minimum wage and protection against discrimination, remain.
What constitutes a legal vs. illegal strike?
In New Zealand, a legal strike is generally industrial action undertaken to support a collective bargaining claim for a collective agreement, or for health and safety reasons, provided specific conditions like notice periods are met. Strikes for other reasons, or without proper notice, are typically illegal. The law provides protections for participants in lawful strikes.
What constitutes "justifiable dismissal" in NZ?
In New Zealand, a dismissal is 'justifiable' if a fair and reasonable employer could have acted in the way the employer did, considering all circumstances at the time. This includes both the substantive reason for dismissal and the fairness of the process followed by the employer, upholding principles of good faith and natural justice.
What happens if you fail a PIP?
Failing a Performance Improvement Plan (PIP) can lead to dismissal in New Zealand. Employers must act in good faith and follow a fair process, giving employees genuine opportunities to improve and a right to representation. If unfairly dismissed, employees can raise a personal grievance.
What happens if you get sick while on annual leave?
If an employee falls sick or is injured while on annual leave in New Zealand, they may be able to convert those days to sick leave, provided they notify their employer and, if requested, provide proof of illness. This allows the annual leave days to be reinstated for later use, subject to the employee's sick leave entitlements.
What happens if you leave without giving proper notice?
Leaving employment in New Zealand without providing the agreed notice period is a breach of the employment agreement. Employers may pursue claims for actual financial losses incurred due to the employee's early departure through the Employment Relations Authority or Employment Court. Both employees and employers have good faith obligations during the employment relationship and its termination.
What happens to annual leave when you quit?
When an employee resigns in New Zealand, employers must pay out untaken annual leave. For those who have completed 12 months of service, this includes payment for accrued but unused leave. For any period where 12 months of service has not been completed, an employee is paid 8% of their gross earnings for that period, as per the Holidays Act 2003.
What is a 90-day trial period and who can use it?
A 90-day trial period allows an employer to dismiss a new employee within their first 90 days of employment without facing a personal grievance for unjustified dismissal. It must be a written agreement, made before the employee starts work. All New Zealand employers can now utilise 90-day trial periods.
What is a Performance Improvement Plan (PIP)?
A Performance Improvement Plan (PIP) is a formal process employers use to address an employee's performance concerns. While not explicitly defined by law, its implementation is guided by the Employment Relations Act 2000, particularly the principles of good faith and the justification test for employer actions, ensuring fairness and the opportunity for improvement.
What is a "suspension on full pay" pending investigation?
A "suspension on full pay pending investigation" occurs when an employer temporarily removes an employee from duties with continued wages while investigating serious allegations. This action must be justified, conducted in good faith, and follow a fair process, as required by the Employment Relations Act 2000, to ensure fair treatment.
What is constructive dismissal?
Constructive dismissal occurs when an employee resigns because their employer's conduct or actions leave them with no reasonable choice but to leave. It is not a direct dismissal but can be treated as an unjustifiable dismissal under New Zealand law, allowing the employee to raise a personal grievance.
What is the Employment Relations Act (ERA) 2000?
The Employment Relations Act 2000 (ERA) is the primary legislation governing employment relationships in New Zealand. It mandates good faith conduct, outlines requirements for employment agreements, and establishes processes for resolving workplace disputes. The ERA also covers rights regarding unjustified dismissal and the legality of strikes and lockouts, ensuring fair and productive employment environments.
What is the Employment Relations Authority (ERA)?
The Employment Relations Authority (ERA) is an independent body established under New Zealand's Employment Relations Act 2000. Its primary role is to investigate and resolve employment relationship problems by making determinations based on the facts and law. It aims to provide speedy and informal resolution, encouraging mediation as a first step before formal investigation.
What is the "last on, first off" rule for redundancy?
In New Zealand, 'last on, first off' is a selection policy employers might use for redundancy, but it is not a legal rule. Redundancies must be genuinely based on business reasons, and employers must follow a fair process, acting in good faith. This includes consulting employees and considering feedback, ensuring the dismissal is justified in all circumstances.
What must legally be included in an employment contract?
In New Zealand, every employee must have a written employment agreement. This agreement legally requires specific content, including names of parties, job description, work location, hours, wages, and a dispute resolution process. It must also explain how to seek independent advice. Any trial or probationary period, if used, must also be in writing.
What to do if you are being underpaid
If an employee in New Zealand believes they are being underpaid, they can address the issue by first speaking with their employer. If the matter remains unresolved, a personal grievance can be raised, or the Labour Inspectorate can be contacted. The Employment Relations Authority can make determinations and order remedies for underpayment.
What to do if you are fired after making a complaint
If an employee in New Zealand is dismissed after making a complaint, they may be able to raise a personal grievance for unjustified dismissal. This involves challenging whether the employer's actions and process were fair and reasonable. The Employment Relations Act 2000 outlines the rights and resolution pathways, including mediation and the Employment Relations Authority.
What to do if your employer goes into liquidation
When a New Zealand employer goes into liquidation, employment contracts typically terminate. Employees become creditors for unpaid wages, holiday pay, and other entitlements. These employee claims usually receive preferential treatment over general creditors under the Companies Act 1993, but payment depends on available company assets. A liquidator manages the process and employee claims.
When can an employer stop paying your Kiwisaver?
Employers in New Zealand are generally required to contribute to an eligible employee's KiwiSaver. This obligation can cease or be suspended if the employee opts out within a specific period, takes a savings suspension, reaches New Zealand Superannuation age with sufficient membership, or joins an exempt superannuation scheme. The employer's duty is defined by the KiwiSaver Act 2006.
When is a fixed-term contract illegal?
A fixed-term employment contract in New Zealand must have a genuine reason, based on reasonable grounds, for the employment to end at a specified time or on a specific event. This reason must be communicated to the employee in writing. If these conditions are not met, the contract is treated as indefinite, granting the employee full permanent employment rights.
Whistleblowing: The Protected Disclosures Act
The Protected Disclosures Act 2022 provides a framework for disclosing serious wrongdoing in New Zealand workplaces. It protects individuals who make disclosures in good faith and with reasonable belief, from retaliatory action. Organisations have obligations to handle disclosures appropriately. Retaliatory actions can constitute a personal grievance under the Employment Relations Act 2000.
Who pays for the medical certificate?
In New Zealand, employers are generally responsible for paying the reasonable expenses of a medical certificate if they require an employee to provide proof of sickness or injury. This applies whether the absence is short or long, and also if an employee voluntarily provides proof before it's formally required. Reimbursement should occur promptly after proof and invoice are provided.
Working from home: Employer health and safety duties
Employers in New Zealand retain health and safety duties for employees working from home, primarily under the Health and Safety at Work Act 2015. These duties involve managing risks, providing safe equipment, and consulting with workers to ensure a safe work environment, extending the concept of a workplace to the home setting.
Workplace bullying: What defines it under NZ law?
Workplace bullying in New Zealand involves repeated, unreasonable behaviour towards a worker that poses a risk to health and safety. Employers have a legal duty under the Health and Safety at Work Act 2015 to protect workers from such risks, including psychological harm. The Employment Relations Act 2000 also requires good faith in employment relationships, and bullying can lead to personal grievances.
Workplace surveillance: Is your boss allowed to watch you?
Workplace surveillance in New Zealand is primarily governed by good faith employment obligations and privacy principles. Employers must generally inform employees about monitoring, ensure a legitimate business purpose, and collect information fairly and lawfully. Employees have rights to be informed, access, and correct their personal information collected through surveillance.