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FAQs

What is the basis of employment law in New Zealand?

Core statutes in New Zealand include:

  • Employment Ralations Act 2000
  • Health and Safety at Work Act 2015
  • Numerous supporting statutes include:
  • Human Rights Act 1993
  • Minimum Wage Act 1983
  • Wages Protection Act 1983
  • Parental Leave and Employment Protection Act 1987
Is it illegal to work without a contract in NZ?

Yes. Every employee in New Zealand must be covered by a collective agreement or have a written individual employment agreement. Failure to ensure the employment agreement is in writing may result in a fine of $1,000 per employee.

How much notice does an employee have to provide when quitting?

Notice periods in New Zealand are not legislated. An employment agreement should include the notice period required to be given by the employee or employer to end the relationship. If the employment agreement doesn't have a notice period, then fair and reasonable notice must be given. This should take into account length of service, type of job, how long it might take to replace the employee and common practice in the workplace. Depending on the role 2 to 4 weeks' notice is often seen as fair. Keep in mind that when an employer wants to give notice to end an employment relationship, they can only do so on completion of the relevant fair and reasonable process.

What are my obligations to my employees?

Employers should provide a safe workplace and comply with employment legislation, employment agreements and any other agreements and policies and procedures that apply to their workplace.

Employment relationships are underpinned by the duty of good faith. Good faith means dealing with each other honestly, openly, and without misleading each other. It requires parties to be active and constructive in establishing and maintaining a productive relationship in which they are responsive and communicative.

Can an employer refuse annual leave?

In some cases you may not be a in a position to approve annual leave at the time the employee requests it. An employer may decline a request for annual leave if they have a genuine business reason for doing so. However, the rules specify that an employer must not unreasonably withhold consent, so they must have considered the request and provide a valid business reason.

For example, another employee has already requested leave for this period of time, or it is an exceptionally busy period for the business and annual leave cannot be granted during this period. Employers should keep in mind that an employee must be allowed to take their entitled leave within 12 months of their entitlement arising should the employee wish to do so. In addition, if the employee elects to take two weeks' of entitled leave continuously this must also be allowed.

What is the Employment Relations Authority?

The Employment Relations Authority is an investigative body set up to resolve employment relationship problems by establishing facts and making a determination according to the merits. Authority Members are appointed by the Governor General. The Employment Relations Authority has exclusive jurisdiction over employment relationship problems.

What is the MBIE?

Ministry of Business, Innovation and Employment (MBIE) is a group of governmental departments relating to the business sector.

Can I change my employee's contract?

If you need to make changes to an employee's terms and conditions of employment:

  • Provide any affected employees with information about the proposed changes
  • Seek your employee's feedback
  • Consider any feedback raised
  • Avoid making any final decisions until you have consulted with affected employees
  • Record all changes in writing.

The specific process will depend on the type of change and the individual employees so always contact an employment relations specialist for specific guidance.

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