New Zealand’s employment law framework is designed to promote fairness, mutual respect, and safe working environments. It sets out minimum standards that apply to all employees—regardless of their role, industry, or employment type—and provides a legal basis for resolving disputes when problems arise.
This guide offers a comprehensive overview of employment law in New Zealand, including core legislation, minimum employee entitlements, employer obligations, and the mechanisms available to enforce your rights.
What Is Employment Law?
Employment law in New Zealand governs the relationship between employers and employees. It outlines the rights and responsibilities of both parties and applies to matters such as:
- Employment agreements
- Minimum wage and hours of work
- Leave entitlements
- Health and safety
- Discrimination and harassment
- Collective bargaining
- Ending employment
- Dispute resolution
This legal framework ensures that workplaces operate fairly and transparently and that all employees are treated with dignity.
Why Employment Law Matters
Employment law serves several important purposes:
- Protecting workers: It establishes clear rights and entitlements to ensure safe and equitable workplaces.
- Promoting stability: It reduces ambiguity and provides a consistent framework for addressing disputes.
- Ensuring fairness in business: It prevents unfair competition by holding all employers to the same minimum standards.
Clear legal rights and responsibilities for employees and employers help enable more productive, respectful, and legally compliant workplaces.
Key Legislation in Employment Law NZ
Several key statutes underpin New Zealand’s employment law system:
1. Employment Relations Act 2000 (ERA)
The ERA is the cornerstone of employment legislation. It governs the employment relationship and requires both parties to act in good faith—a legal obligation to be honest, communicative, and constructive.
The ERA addresses:
- Employment agreements
- Union membership and collective bargaining
- Dispute resolution, including mediation and the Employment Relations Authority (ERA)
- Personal grievances and dismissal procedures
2. Holidays Act 2003
This Act provides for:
- Four weeks’ paid annual leave after 12 months of continuous employment
- 12 public holidays per year (paid if it is an otherwise working day)
- Sick leave, bereavement leave, and family violence leave
- Holiday pay entitlements for casual or fixed-term employees (8% of gross earnings)
3. Health and Safety at Work Act 2015 (HSWA)
This legislation outlines the responsibilities of employers to provide a safe and healthy workplace. It includes:
- Identifying and managing hazards
- Providing adequate training and protective equipment
- Enabling workers to participate in health and safety decision-making
WorkSafe New Zealand is the primary regulator for enforcing these standards.
4. Human Rights Act 1993
The HRA prohibits unlawful discrimination on the basis of characteristics such as:
- Race or ethnicity
- Gender or sexual orientation
- Age
- Disability
- Religion or political opinion
- Family or marital status
It also protects against harassment, bullying, and other forms of unfair treatment.
5. Wages Protection Act 1983
This Act requires:
- Wages to be paid in money (not kind)
- Full payment at agreed intervals
- Written consent for any wage deductions (unless legally required)
- Employees to have the right to recover unpaid wages
6. Parental Leave and Employment Protection Act 1987
Eligible employees may access:
- Up to 26 weeks’ paid parental leave (funded by the government)
- 52 weeks’ total leave, including extended unpaid leave
- Partner leave, special maternity leave, and job protection rights
Minimum Employee Rights in New Zealand
Employees in New Zealand are legally entitled to a range of minimum standards. These cannot be contracted out of or waived, regardless of the employment agreement in place.
Employment Agreements
All employees must have a written employment agreement that outlines:
- Position and duties
- Hours of work
- Pay rate and how it will be calculated
- Leave entitlements
- Termination provisions
- Trial periods, if applicable (valid only for businesses with fewer than 20 employees and if agreed before employment begins)
Employees have the right to seek advice before signing and to request an up-to-date copy at any time.
Wages and Payment
- The minimum wage is reviewed annually and applies to most employees aged 16 and older.
- Wages must be paid in full and on time, in money—not goods or services.
- Employers cannot deduct money from an employee’s wages without written consent, except for legally required deductions (e.g., tax, KiwiSaver).
Examples of unlawful deductions include:
- Charging employees for tools unless the employee was negligent
- Deducting pay for mandatory training
- Charging a “fee” for hiring
Breaks and Hours
For an eight-hour shift, employees are entitled to:
- Two 10-minute paid rest breaks
- One 30-minute unpaid meal break
Shorter shifts receive proportionate break entitlements.
Leave Entitlements
Employees may be entitled to the following types of leave, depending on their circumstances and length of service.
Sick Leave
Employees are entitled to 10 paid days of sick leave per year after six months of continuous employment. These days can be used for the employee or a dependent of the employee.
Bereavement Leave
Employees are entitled to three days bereavement leave for immediate family (spouse, child, parent, sibling, grandparent, grandchild, in-laws). One day of bereavement leave can be granted for others if the employer accepts the relationship was significant
Family Violence Leave
Employees are entitled to 10 days family violence leave per year after six months’ service.This leave is available to manage the effects of family violence. Employees in this situation may also request short-term flexible working for up to two months.
Public Holidays
Employees are entitled to 12 public holidays per year, to be paid if they fall on a day the employee would normally work. If required to work, the employee must be paid time and a half and given a paid day off (alternative holiday).
Annual Holidays
Employees are entitled to four weeks of paid leave after 12 months of employment. Part-time employees receive a pro-rated entitlement and casual employees receive 8% holiday pay in lieu.
Parental Leave
Employees are entitled to 26 weeks’ government-funded leave and up to 52 weeks’ total leave, including extended unpaid leave. Partner and maternity leave are also available. Most employees have a right to return to the same or similar position after their leave is finished.
Flexible Working Arrangements
Under the ERA, all employees have the right to request flexible working arrangements, regardless of how long they’ve worked for their employer. This may include changes to hours, days, or location of work and changes may be temporary or permanent arrangements. Employers are legally required to consider these requests seriously and respond within one month, providing written reasons if declined.
Ending Employment
Employment relationships must be ended fairly and lawfully. Key requirements include:
- Notice: Employers must provide the notice period stated in the employment agreement, or a reasonable period if not specified.
- Redundancy: There is no statutory right to redundancy compensation unless outlined in the employment agreement. Redundancies must be genuine and follow a fair process.
- Dismissal: Employers must follow a fair and reasonable disciplinary process, including clear communication and an opportunity for the employee to respond.
- 90-day trial periods: Only permitted for small businesses (fewer than 20 employees) and must be properly documented and agreed upon before employment begins.
Employee Responsibilities
While employees are protected under the law, they also have responsibilities, including:
- Performing their duties to a reasonable standard
- Following lawful and reasonable instructions
- Being honest and acting in good faith
- Respecting confidentiality and avoiding conflicts of interest
- Complying with health and safety requirements
Common Disputes and Resolution Options
Common issues include:
- Unpaid wages
- Unfair dismissal
- Discrimination
- Bullying or harassment
- Breaches of contract
Resolution Pathways:
- Raise concerns internally with your employer
- Seek mediation through an experienced mediator
- Lodge a personal grievance with the Employment Relations Authority
- Appeal to the Employment Court if necessary
Remember, employment law in New Zealand is designed to ensure that all workers are treated with dignity, respect, and fairness. These laws not only protect your rights but also provide clear expectations for employers and employees alike. Your rights are not optional and they are protected by law.
If you are concerned about how you are being treated at work, My Advocate are here to help. Just reach out and we can help you understand your rights and options to move forward.