Country Selector
Last updated on: April 21st, 2023
Labor Requirements
The Labor Law in New Zealand is regulated mainly by the Employment Relations Act 2000 (amended in 2018). The law governs the terms and conditions of employment such as working hours, holidays and rest periods, wages, overtime, and other employment conditions. The other acts that govern labor relationships are the Minimum Wage Act, The Holiday Act, of 2003, and Parental Leave and Employment Protection Act of 1987.
Hours & Pay Regulations
Normal Working Hours
An employee’s standard hours of work shall not exceed 40 hours per week (exclusive of overtime). The law emphasizes working not more than 40 hours (exclusive over time) so that employees can divide their work week not more than 5 working days.
The employer and employee may agree to work more than 40 hours in a week (exclusive of overtime) through their mutual agreement. Section 11 B, Minimum Wage Act.
Flexible Work Arrangement
Employees can request to change their work arrangements i.e. place, hours, or days of work and employers must consider the request. Employers shall look at the request for the change in work arrangement within 1 month of receiving it. An employer has the right to refuse the request only if it cannot be accommodated on certain grounds. Section 69AA of the Employment Relations Act
Recording Requirements
Every employer shall keep records (called the wages and time record) of each employee employed by that employer. The wages and time record must be kept in written form; or in a manner that can be easily accessed and converted into written form.
The records shall contain information like the number of hours worked, type of work, details of the employment agreement, title and expiry date of the agreement, wages paid to the employee each pay period, and the method of calculation, etc.
Every employer upon request by an employee or by a person authorized must provide access to or a copy of required records to the employee. Employers shall keep the records of each employee for a minimum period of 6 years. Every employer who fails to comply with any requirement shall be liable for a penalty imposed under the law. Employment Relations Act, Section 130.
Overtime
Overtime rates are negotiated between the employer and employee. There is no legal requirement to pay overtime at a premium rate, although employees on an hourly wage must be paid for all hours worked.
Breaks
An employee is entitled to receive rest breaks and meal breaks as follow:
Work period between 2 hours and 4 hours
If an employee’s work period is of 2 hours or more but not more than 4 hours, the employee is entitled to one 10-minute paid rest break. The employer is required to give the employee a rest break in the middle of the workday, as far as is reasonable and practical.
Work period between 4 hours and 6 hours
If an employee’s work period is more than 4 hours but not more than 6 hours, the employee is entitled to:
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- One 10-minute paid rest break; and
- One 30-minute unpaid meal break.
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An employer must provide the employee with a rest break one-third of the way through the work period, and meal breaks two-thirds of the way through the work period.
Work period between 6 hours and 8 hours
If an employee’s work period is more than 6 hours but not more than 8 hours, the employee is entitled to:
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- Two 10-minute paid rest breaks; and
- One 30-minute unpaid meal break.
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An employer must provide the employee with a rest break halfway between the start of work and the meal break; and the meal break in the middle of the work period; and a rest break halfway between the meal break and the finish of the work period.
During the work period of 8 hours, the employee is entitled to—
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- Two 10-minute paid rest breaks; and
- One 30-minute unpaid meal break.
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An employer must provide the employee with a rest break halfway between the start of work and the meal break; and the meal break in the middle of the work period; and a rest break halfway between the meal break and the finish of the work period.
Subsequent Period – Work period beyond 8 hours
During the work period beyond 8 hours (the subsequent period), the employee is entitled to the following:
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- If the subsequent period is 2 hours or more but not more than 4 hours then the employee is entitled to one 10-minute paid rest break;
- If the subsequent period is more than 4 hours but not more than 6 hours, then they employee is entitled to one 10-minute paid rest break; and one 30-minute unpaid meal break:
- If the subsequent period is more than 6 hours but not more than 8 hours, then the employee is entitled to two 10-minute paid rest breaks; and one 30-minute unpaid meal break.
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When Break Should be Taken in the Subsequent Period
In case of work of 8 hours or more than 8 hours (subsequent period), an employer must provide the employee with the breaks as follows:
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- If the subsequent period is 2 hours or more but not more than 4 hours, the rest break in the middle of the subsequent period;
- If the subsequent period is more than 4 hours but not more than 6 hours: the rest break is one-third of the way through the subsequent period; and the meal break two-thirds of the way through the subsequent period.
- If the subsequent period is more than 6 hours but not more than 8 hours; a rest break halfway between the start of the subsequent period and the meal break; and the meal break in the middle of the subsequent period; and a rest break halfway between the meal break and the finish of the subsequent period.
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Compensatory Rest Period
If an employer fails to provide breaks a measure that is reasonable and designed to compensate an employee which may include (without limitation):
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- a measure that provides the employee with time off work at an alternative time during the employee’s work period; or
- financial compensation; or
- both time off work at an alternative time and financial compensation.
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Public Holidays
There are 12 public holidays available to employees in New Zealand :
- Christmas Day
- Boxing Day
- New Year’s Day
- Matariki
- 2nd January
- Waitangi Day
- Good Friday
- Easter Monday
- ANZAC Day
- King’s Birthday
- Mataraki
- Labour Day (being the fourth Monday in October)
- the day of the anniversary of a province or the day locally observed as that day.
If 2 or more of the public holiday’s specified fall on the same day, the public holidays must be treated as 1 day.
When Employee required to Work on Public Holiday
If an employee works on a public holiday then they are entitled to a premium of 150% for the hours worked along with one full day off in lieu of another day.
Transferring a Public Holiday by Agreement
An employer and employee may agree in writing, that an entire public holiday will be observed on another day for the employee. The day must be an otherwise working day for the employee and not another public holiday, and the transfer cannot reduce the number of public holidays the employee gets.
Entitlements for working or not working on a transferred date
When the public holiday is transferred, the day it is moved to become the public holiday for the employee. If the employee:
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- does not work on the day the public holiday is transferred to, they get relevant daily pay or average daily pay for the day that the public holiday is transferred to.
- works on the day the public holiday is transferred to (the employer and employee must both agree that the employee will work on the day), they get paid time and a half for the hours worked and get an alternative holiday just as they would have if they had worked the original public holiday.
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Transfer of public holidays over Christmas and New Year
If Christmas Day, Boxing Day, New Year’s Day & 2nd January:
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- falls on a Saturday and the day would otherwise be a working day for the employee, the public holiday must be treated as falling on that day:
- falls on a Saturday and the day would not otherwise be a working day for the employee, the public holiday must be treated as falling on the following Monday:
- falls on a Sunday and the day would otherwise be a working day for the employee, the public holiday must be treated as falling on that day:
- falls on a Sunday and the day would not otherwise be a working day for the employee, the public holiday must be treated as falling on the following Tuesday.
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To avoid doubt, this does not entitle an employee to more than 4 public holidays for the days listed.
Transfer of Waitangi Day and ANZAC Day public holidays
If Waitangi Day or ANZAC Day:
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- falls on a Saturday or a Sunday, and the day would otherwise be a working day for the employee, the public holiday must be treated as falling on that day:
- falls on a Saturday or a Sunday, and the day would not otherwise be a working day for the employee, the public holiday must be treated as falling on the following Monday.
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Employees are not entitled to more than 1 public holiday for Waitangi Day and ANZAC Day respectively.
Alternate Holiday
An employee is not entitled to an alternative holiday if the employee works for the employer only on public holidays.
Public holiday falls on a Saturday
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- the employee would not normally work on Saturday, then their holiday entitlement is transferred to the following Monday, or
- the employee would normally work on Saturday, then they will get their holiday entitlements on Saturday (the calendar date of the public holiday).View the table of entitlements for a calendar date public holiday falling on a Saturday.
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Public holiday falls on a Sunday
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- the employee would not normally work on Sunday, then they will get their holiday entitlements on either the following Monday (in the case of Waitangi Day and Anzac Day), or the following Tuesday (in the case of Christmas Day, New Year’s Day, Boxing Day and the day after New Year’s Day).
- an employee would normally work on Sunday, then they will get their holiday entitlements on Sunday (the calendar date of the public holiday).
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View the table of entitlements for a calendar date public holiday falling on a Sunday.
During annual holidays
If an employee is on annual leave when there is a public holiday, they get a paid public holiday if they would have normally worked on that day, and do not lose an annual leave day.
During parental leave
If an employee is on parental leave and a public holiday falls within that leave, the employer does not have to pay for the public holiday because the employee would not have normally worked on that day.
If the employee is getting a parental leave payment over a week when there is a public holiday, the payment amount and number of weeks they get a payment for is not affected by the public holiday.
If an employee is sick or bereaved
When an employee would have worked on a public holiday but is sick or bereaved, the day is treated as a paid unworked public holiday and:
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- the employee would be paid their relevant daily pay or average daily pay, but would not be entitled to time and a half or an alternative holiday
- no sick or bereavement leave is deducted.
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Shifts split across a public holiday and a normal day
Generally, a public holiday runs from midnight to midnight, so if an employee works on any part of the public holiday (and it is an otherwise working day for them) they are entitled to an alternative holiday (as well as time and a half for the time actually worked on the public holiday).
Working on Easter Sunday (not a public holiday)
If an employee works on Easter Sunday, they would generally be paid their ordinary rate of pay for a Sunday unless they have agreed to a different rate with their employer. Section 42-73 of Holiday Act, 2003.
Annual Leave
An employee is entitled to not less than 4 weeks of paid annual leave after completing 12 months of continuous employment with the same employer.
An employer must allow an employee to take annual leave within 12 months after the date on which the employee’s entitlement to the holidays begins. If an employee elects to do so, the employer must allow the employee to take at least 2 weeks of their annual leave entitlement in a continuous period. When annual leave is to be taken by the employee is to be agreed upon between the employer and employee.
Entitlement to Annual Leave
The 12 months of continuous employment includes any period during which the employee was:
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- on paid holidays; or
- on parental leave; or
- on volunteers’ leave; or
- receiving weekly compensation under the Accident Compensation Act 2001 or instead of, payment from the employer; or
- on unpaid sick leave or unpaid bereavement leave or unpaid family violence leave; or
- on unpaid leave for any other reason for a period of no more than 1 week;
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An employer and employee may agree on any length of unpaid leave (other than unpaid sick and bereavement leave or unpaid leave of less than one week) lasting longer than one week while determining an employee’s 12-month period of continuous employment. An employer and employee may agree on how an employee’s entitlement to 4 weeks’ annual holidays is to be met based on what genuinely constitutes a working week for the employee.
Calculation of annual holiday pay
Annual leave are paid at whichever rate is the higher of:
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- the employee’s ordinary weekly pay at the beginning of the annual leave, or
- the employee’s average weekly earnings for the 12 months just before the end of the last pay period before the annual leave.
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Both of these calculations need to be done every time the employee takes annual leave.
An employer may regularly pay annual leave pay with the employee’s pay if the employee is employed on a fixed-term agreement to work for less than 12 months; or works for the employer on a basis that is so intermittent or irregular that it is impracticable for the employer to provide the employee with 4 weeks annual leave; and
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- the employee agrees in his or her employment agreement; and
- the annual leave pay is paid as an identifiable component of the employee’s pay; and
- the annual leave pay is paid at a rate of not less than 8% of the employee’s gross earnings.
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An employee may request that the employer pay out a portion of the employee’s entitlement to annual leave.
Sickness, injury, bereavement, or family violence arising before scheduled annual holidays
If an employee takes annual leave, and right before the leave the employee:
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- Becomes sick or injured; or
- Has a spouse or partner or dependant who becomes sick or injured; or
- Suffers a bereavement; or
- Becomes entitled to take family violence to leave.
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The employer must allow the employee to take such leave which would otherwise be taken as annual leave. An employer may allow the employee to take annual leave if sick leave, bereavement leave, or family violence leave is exhausted.
Public holidays that fall during the annual leave
A public holiday that occurs during an employee’s annual leave must be treated as a public holiday and not as part of the employee’s annual leave. Section 16-28 & 36-40 of Holiday Act 2003.
Special Leave
An employee is entitled to up to 12 weeks of parental leave payments out of the government funds (public treasury) when they take parental leave from their employment in respect of a child.
An employee is entitled to a parental leave payment if the employee has given written notice to his or her employer of his or her wish to take parental leave; and takes parental leave from his or her employment in respect of a child.
An employee is eligible to transfer their parental leave to their spouse under the conditions specified in the law. A parental leave payment is payable:
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- for 1 continuous period not exceeding 12 weeks; or
- if part of the entitlement is transferred for 1 continuous period per employee, so long as the 2 continuous periods do not together exceed 12 weeks.
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The rate of parental leave payment payable to any employee is the lesser of $661.12 per week (or any adjusted amount set in accordance with the law) or the greater of 100% of the employee’s ordinary pay before the commencement of the parental leave, or 100% of the employee’s average weekly earnings. Sections 71A and 71ZA of Parental Leave and Employment Protection Act 1987.
A female employee who is pregnant is entitled, before taking primary carer leave, to take a total of up to 10 days of special leave without pay for reasons connected with her pregnancy. Section 14 of the Parental Leave and Employment Protection Act 1987.
Employees who have been affected by domestic violence can take paid domestic violence leave if they have six months’ current continuous employment with the same employer, or they have worked for the employer for six months for an average of 10 hours per week, and at least one hour in every week or 40 hours in every month.
Employees affected by domestic violence have the right to take at least 10 days of paid domestic violence leave. This is separate from annual leave, sick leave, and bereavement leave. Employees can also ask for short-term flexible working arrangements for up to 2 months. Section 72A-72J of Holiday Act 2003.
Primary carer means a female (the biological mother) who is pregnant or has given birth to a child, the spouse or partner of the biological mother, only if the spouse or partner has succeeded to all or part of the biological mother’s entitlement to a parental leave payment; or the biological mother has transferred all or part of her entitlement to a parental leave payment to that spouse or partner.
Unpaid Primary carer leave must be taken in 1 continuous period not exceeding 26 weeks.
If a female employee begins her primary carer leave on a date specified, in a certificate; or on a date appointed, by her employer, the female employee shall be entitled to take at least 20 weeks of her primary carer leave after the expected date of delivery and, if necessary for that purpose, to extend the duration of her primary carer leave.
Primary carer leave may, at the option of the employee, begin on a date which is earlier, by not more than 6 weeks than, in the case of a child to be born to the employee, the expected date of delivery; or in any other case, the date on which the employee intends to become the primary carer in respect of the child. Section 7-13 of Parental Leave and Employment Protection Act 1987.
Breastfeeding Break
Employers must provide appropriate facilities and breaks for women who want to breastfeed at work. This can be unpaid or paid, depending on the workplace policy.
The breaks are unpaid and in addition to rest and meal breaks (unless the employee and employer agree otherwise). If employers do not provide breastfeeding breaks, the Employment Relations Authority could make them comply or give them a penalty. Section 69X to 69ZB of the Employment Relations Act.
All employees (including part-time and casual employees) are entitled to 10 days’ sick leave if:
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- they have six months’ current continuous employment with the same employer, or
- they have worked for the employer for six months for an average of 10 hours per week, and at least one hour in every week or 40 hours in every month.
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An employer may require an employee to produce proof of sickness or injury for sick leave taken for more than a period of 3 or more consecutive calendar days, whether or not the days would otherwise be working days for the employee. If in any year the employee doesn’t meet the criteria, then they don’t get any new sick leave entitlement, but can use their sick leave balance which may have carried over. An employee may re-qualify for sick leave as soon as they meet the criteria. Sick leave entitlements are not prorated in any way.
Payment for sick leave
An employee is entitled to receive sick leave pay at daily pay or average daily pay.
Payment for sick leave is only made when it is a day that the employee would otherwise have worked if they were not sick. If it was not an otherwise working day (e.g if the employee was on unpaid leave or the employee fell sick on a day that they weren’t rostered to work) then the employee would not be entitled to be paid sick leave. The sick leave is paid at the employee’s relevant daily pay or average daily pay.
Payment for part-day sick leave
If an employee has work half day and later goes home sick, it shall be considered that the employee has utilized their whole day of sick leave.
Unused sick leave
Any unused sick leave at the end of a 12-month period can be carried over and added to their next year’s entitlement. The maximum amount of sick leave that can be accumulated and carried forward is 20 days in total in any current year. The employer and employee can agree that sick leave can accumulate to more than 20 days; via agreement.
Termination of employment– An employer is not entitled to pay for any sick leave that has not been taken before the date on which the employment ends for the employee. Section 65-68 of Holiday Act 2003.
All employees (permanent, fixed-term, part-time, and casual) can use bereavement leave if they have worked for the employer continuously for six months or they have worked for the employer for six months for an average of 10 hours per week, and at least one hour in every week or 40 hours in every month.
An employee is entitled to bereavement leave for:
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- on the death of the employee’s spouse or partner, parent, child, brother or sister, grandparent, grandchild, spouse’s or partner’s parent; or
- on the end of an employee’s pregnancy by way of a miscarriage or still-birth; or
- on the end of another person’s pregnancy, by way of a miscarriage or still-birth, if the employee is the person’s spouse or partner; or biological parent had undertaken to be the primary carer or is the spouse or partner of a person who had undertaken to be the primary carer of a child born as a result of the pregnancy.
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Each employee gets bereavement leave for a minimum of:
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- 3 days per death if a spouse or partner, parent, child, sibling, grandparent, grandchild, or spouse, or partner’s parent dies.
- 1 day per death if another person dies and their employer accepts they’ve had a bereavement.
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Section 69-72 of Holiday Act 2003.
Partner’s leave must be taken in 1 continuous period not exceeding:
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- 2 weeks if the employee meets the 12-month employment criteria; or
- 1 week if the employee meets the 6-month employment criteria.
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An employee can take a partner’s leave within the timeframe starting 21 days before the due date of the baby, or the date the partner or spouse becomes the primary carer for a child under six years and ending 21 days after the baby is born (unless the baby is discharged from a hospital more than 21 days after the birth, in which case the partner’s leave time frame ends on the day the child is discharged) or the date the partner or spouse becomes the primary carer for the child. Section 17-22 of Parental Leave and Employment Protection Act 1987.
The amount of extended leave that an employee shall be entitled to depend on whether each parent has either completed 6 months or 12 months of employment with the same employer. Extended leave may be shared by two parents who both meet the criteria, and they can take it at the same time or one after the other:
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- Employees who meet the 12-month criteria may take up to unpaid 52 weeks extended leave (less the number of weeks primary carer leave taken, up to 26 weeks unpaid leave). If two parents are sharing the leave and they both meet the 12-month criteria then they share this amount.
- Employees who meet the six-month criteria may take up to 26 weeks in total. If two parents are sharing the leave and they both meet the six-month criteria then they share this amount.
- If one parent meets the 12-month criteria and the other parent meets the six-month criteria then the person who has only worked for six months cannot take more than 26 weeks of the total 52 weeks (less the number of weeks primary carer leave taken up to 26 weeks) available to the couple.
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The one or two weeks of partner’s leave is not included in the 26 weeks or 52 weeks extended leave period.
Starting Extended Leave
An employee can start extended leave:
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- at any time after employee ends primary carer leave, or
- at any time after employee end partner’s leave, or
- on any date agreed with the employer, or
- if an employee can take primary carer or partner’s leave but choose not to, then the employee can start extended leave either when the baby arrives if the child is born to employee or employee’s spouse or partner, or the date employee or employee’s spouse or partner becomes the primary carer in respect of the child in all other cases.
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Employees can finish the primary carer or partner’s leave, go back to work, and then take extended leave later. Section 23-30 of Parental Leave and Employment Protection Act 1987.
Negotiated carer leave lets employees who don’t qualify for primary carer leave to take leave to care for their child and receive parental leave payments.
Negotiated carer leave is a period of unpaid leave from work which an employee can ask for at least three months before the baby’s due date, if the employee or their spouse or partner is pregnant, or 14 days before an employee becomes the primary carer of a child. The employer must provide the employee with a written explanation for the reasons if the employee is denied the leave entitlement. Section 30A-30D of Parental Leave and Employment Protection Act 1987.
An employer has to let employees take leave while they do Armed Forces’ full-time or part-time voluntary training or service (unpaid) and/or active operational service, if they are called up or volunteer in a ‘Situation of National Interest’, war or emergency.
Employers must hold an employee’s job open and protect their entitlements but don’t have to pay employees for any period while on leave.
https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/defence-force-volunteers/
An employer may provide an employee with sick leave if they have work-related stress.
https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/stress-leave/
Garden Leave is not referred to in employment legislation but is a term sometimes used to describe a period when an employee retains their employment, receives full pay but does not report to work. Garden leave can be useful when both the employee and employer agree to its use in a particular situation.
https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/garden-leave/
An employee can take leave without pay if their employer agrees. The agreement should be recorded in writing.
Employees aren’t entitled to take leave without pay; they can only take it if their employer agrees. This agreement could be contained in their employment agreement, or could be negotiated by the employee and employer at the time leave is taken.
https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/leave-without-pay/
Leave to vote in general elections or by-elections. The number of times employees can have off to vote depends on whether you’re required for essential work or services.
If employees don’t have to work after 3 pm on the polling day for essential work or services, employers must allow employees to leave work by 3 pm for the rest of the day without deductions from employee’s pay for this time off work.
If an employee is required to work for essential work or services after 3 pm on the polling day employer must allow the employee to leave work for a reasonable time to vote. Employers can’t make deductions from employee pay for time up to 2 hours that employees spend off work.
https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/election-voting-leave/
During and after a disaster or emergency, employers and employees need to consider issues such as health and safety, emotional wellbeing, and payment options.
Long service leave and other long service benefits are not legal requirements but may be negotiated between an employer and employee as additional entitlements under their employment agreement. How long an employee has to work to qualify for long service leave will depend on what is agreed between the employee and employer.
https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/long-service-leave/
Jury service is administered by the Ministry of Justice. If an employee has been summoned for jury service they can get more information about this from the Ministry of Justice. Employees who have been called up for jury service must attend and their job is protected while they attend jury service. Employers must allow an employee to attend jury service.
Employees who attend jury service receive a small attendance fee from the Ministry of Justice. Employers don’t have to pay employees while they do jury service, but many choose to ‘top up’ the money the employee gets from the Ministry of Justice so that they get their normal pay.
https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/jury-service/
