New Zealand PEO Services

Global PEO Services (GPS) helps companies hire employees in New Zealand without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.

When hiring employees in New Zealand, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.

Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with New Zealand labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in New Zealand. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.

There are two categories of employment agreements in New Zealand under the Employment Relations Act 2000, namely individual and collective. All agreements (individual or collective) must include the following details:

• Information related to an employee’s entitlements under the Holidays Act 2003
• The employees’ protection provision stating how workers will be affected in case of restructuring
• Entitlement to 1.5 times the regular pay for work done on a public holiday
• Work-related problem resolution process.

Holidays

The following national holidays are observed in New Zealand:

• Jan. 1-2: New Year’s
• Feb. 6: Waitangi Day
• April 25: ANZAC Day
• Good Friday and Easter Monday
• Queen’s Birthday (first Monday in June)
• Labor Day (fourth Monday in October)
• Dec. 25: Christmas Day
• Dec. 26: Boxing Day
• Provincial Anniversary Day (date determined locally)

If Waitangi Day, Christmas, Boxing Day, New Years’ Day, ANZAC Day, and Jan. 2 falls on a Saturday or Sunday, they are observed on the following workday.

Annual Leave

Employees are entitled to 4 weeks’ leave in a year. The leave can be taken at the time agreed between the employee and the employer. Employees can take 2 consecutive weeks of leave out of the 4 weeks.

Sick Leave

Under the Holidays Act 2003, employees are entitled to 5 days’ sick leave in a year after 6 months of employment. Unused sick leave can be accrued for up to 20 days, and it is not mandatory to pay compensation upon termination of employment. In case an employee receives Accident Compensation Corporation (ACC) or workers’ compensation payments for more than 5 days, both employers and employees are allowed to increase the ACC payment from 80% to 100% by reducing 1 day from employees’ sick leave balance.

Maternity Leave

Women employees, under the Parental Leave and Employment Protection Act 1987, are entitled to 52 weeks’ maternity leave. To qualify, employees must have worked an average of 10 hours in a week or 40 hours in a month.

Paternity Leave

Spouses or partners of employees having a baby are entitled to 52 weeks’ paternity leave. Mostly, employees are entitled to return to their positions at the end of the parental leave. Employers may prefer employees who hold key positions for similar jobs after 6 months. However, reinstating in the earlier position cannot be guaranteed.

Other Leaves

• Parental Leave
  The government pays a maximum of NZ$527.72 per week as parental leave benefit for up to 18 weeks.
• Carers’ Leave
  Spouses or partners who take the responsibility of nursing or caring a child aged less than 6 years with an intention to adopt are entitled to same parental leave benefits as biological mothers.
• Bereavement Leave
  Employees are entitled to 3 days’ bereavement leave upon the death of a close family member including their parents, spouses, children, grandparents, mother or father-in-law. In case of more than 1 death, employees are entitled to an additional 3 days’ bereavement leave in a month.
• Volunteer Defense Force Leave
  Employees who volunteer in the armed forces are entitled to unpaid leave for training under the Volunteers Employment Protection Act 1973. Employers are required to hold the positions for up to 12 months for employees who volunteer or are called upon a situation of national interest.