Under the Employment Relations Act 2000, all employees must have a written employment contract that outlines job duties, work hours, wages, benefits, and leave entitlements. The contract ensures legal protection for both employer and employee.
Employer of Record (EOR) New Zealand
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Simple & Compliant Hiring with Globaine's Employer of Record (EOR)
Hire in New Zealand with Confidence
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in New Zealand is handled efficiently and in full compliance with local regulations.
Fast Time-To-Hire
Onboard employees in as little as 12 hours.
Cost-Efficient
The most affordable solution on the market, saving you time and money.
Compliant Contracts
Contracts compliant with Germany's labor law in both German & English
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Hire not just in New Zealand, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.
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in New Zealand
Written contracts must be provided before an employee starts work to ensure clarity and avoid disputes. This is mandatory under the Employment Relations Act 2000.
Salaries should be stated in New Zealand dollars(NZD) and must specify whether the payment is weekly, fortnightly, or monthly. Clear terms regarding overtime and additional allowances should also be included.
Contracts may include clauses related to confidentiality, non-compete agreements, and any specific conditions related to remote work or telecommuting.
An Employer of Record (EOR) is a third-party organization that manages all legal and administrative responsibilities of employing staff on behalf of another company. This includes payroll, tax compliance, employment contracts, benefits administration, and adherence to local labor laws. An EOR allows businesses to hire employees in new countries without establishing a local entity, enabling faster and compliant global expansion.
Choosing an EOR in New Zealand ensures compliance with labor laws, reduces administrative overhead, and allows businesses to expand without establishing a local entity. EOR services handle payroll, benefits, tax filings, and employment contracts, enabling businesses to focus on growth while adhering to New Zealand’s regulatory framework.
in New Zealand
1. What are the key steps in employee onboarding in New Zealand?
New employees need a New Zealand bank account, an Inland Revenue Department (IRD) number for tax purposes, register with the KiwiSaver scheme and if applicable, a work visa. The IRD number tracks tax payments, and a local bank account allows seamless payroll processing. Additionally, new hires should undergo any necessary pre-employment checks as per company policy.
2. When should employees complete pre-hire medical checks in New Zealand?
Certain roles, especially those in healthcare or labor-intensive sectors, require a pre-hire medical check to verify suitability. This requirement ensures that employees are physically capable of fulfilling job demands.
3. What documents are required for onboarding in New Zealand?
Required documents include proof of identity, a tax identification number (IRD), proof of work eligibility, and a completed employment agreement. These documents ensure compliance with New Zealand employment and tax laws, simplifying payroll and tax management.
4. Why businesses in New Zealand need EOR services?
5. How does EOR in New Zealand different from other countries?
in New Zealand
Payroll operates on a fortnightly or monthly basis, with employee salaries subject to income tax and KiwiSaver contributions. KiwiSaver is New Zealand’s retirement savings plan, which typically deducts 3% of the employee’s gross pay unless the employee opts out.
Employers need to withhold PAYE (Pay As You Earn) taxes and ensure KiwiSaver contributions for remote employees as well. Home office allowances may also apply, covering work-related costs like electricity and internet, as required under New Zealand’s employment guidelines.
The minimum wage is NZD $23.15 per hour as of 2024. This rate applies to employees over the age of 16 and ensures that minimum wage workers receive fair compensation per New Zealand labor laws.
Compliance is critical to avoid penalties from the Inland Revenue Department (IRD) and to uphold labor standards. Employers must accurately report employee taxes and KiwiSaver contributions, which are essential for maintaining New Zealand’s high standards of workplace protections.
in New Zealand
1. What is the income tax structure in New Zealand?
New Zealand’s tax system is progressive, with income tax rates ranging from 10.5% to 39%, depending on annual income. Higher earners fall into higher tax brackets, which the Inland Revenue Department (IRD) oversees.
2. How are non-residents taxed in New Zealand?
Non-residents are generally taxed on their New Zealand-sourced income at a flat rate of 30%. This differs from residents, who benefit from the progressive tax structure.
3. When should tax returns be submitted in New Zealand?
Tax returns are typically due by July 7 each year, covering the financial year from April 1 to March 31. Employers are responsible for withholding taxes from employees’ salaries and remitting them to the Inland Revenue Department.
4. What are social security contributions like in New Zealand?
New Zealand doesn’t require employer-funded social security contributions. Instead, funding for health, retirement, and unemployment comes primarily from general taxation and the KiwiSaver program, which employers and employees contribute to.
in New Zealand
Employees are entitled to a minimum of 20 days of paid leave annually, based on a five-day workweek. Many companies offer additional days or have collective agreements for more leave.
Employees can typically start using leave after six months of employment. Leave accrues from the start date and is calculated based on time worked.
Maternity leave is 14 weeks (6 weeks before and 8 weeks after childbirth), fully paid. Paternity leave is not mandated, but fathers can take parental leave, sharing up to 14 months of leave with the mother.
Germany has 9 to 13 public holidays, depending on the state. Employees are entitled to take these holidays off, with compensation.
in New Zealand
1. What benefits are mandatory in Germany?
Employers must provide social security coverage, including health insurance, pension, unemployment, and accident insurance. They are also required to offer at least the statutory minimum wage.
2. How are remote work allowances structured in Germany?
Employers are obligated to compensate employees for remote work expenses, including utilities and internet. This must be stipulated in the employment contract to ensure tax compliance.
3. What additional benefits are common in Germany?
Common benefits include meal allowances, transportation subsidies, and private health insurance, although these are not mandatory by law.
4. What are collective bargaining agreements (CBAs) in Germany?
CBAs often dictate additional employee benefits, such as higher wages, bonuses, or extended leave. These agreements are legally binding and are negotiated by unions and employers.
TERMINATIONS
in New Zealand
The notice period ranges from 4 weeks to 7 months, depending on the employee’s tenure. The longer an employee has worked, the longer the notice period.
Employees can only be terminated without notice in severe cases such as misconduct or breaches of contract. Probationary employees may be terminated with minimal notice.
Severance is usually calculated at half a month’s salary per year of service, though this varies based on individual contracts or collective bargaining agreements.
FAQs
1. What is EOR in New Zealand?
An Employer of Record (EOR) in New Zealand is a service provider that legally employs workers on behalf of businesses. The EOR manages payroll, benefits, tax compliance, and employment contracts while ensuring full adherence to New Zealand’s labor laws, enabling businesses to expand easily and compliantly.
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in New Zealand?
By utilizing Globaine’s EOR, companies can save on the costs associated with setting up a local entity, including registration fees, compliance costs, and ongoing administrative expenses.
3. How does Globaine guarantee fast onboarding within 12 hours, and what processes are in place to maintain this speed?
Globaine’s local experts ensure that all necessary documents are prepared in advance, and our streamlined digital processes allow for rapid onboarding without sacrificing compliance.
4. Can Globaine handle complex employment scenarios in New Zealand, such as drafting bilingual contracts and managing terminations?
Yes, Globaine is equipped to manage complex scenarios by providing tailored bilingual contracts and ensuring compliance with termination laws, mitigating potential legal issues.
6. How does Employer of Record work in New Zealand?
An EOR in New Zealand serves as the legal employer for your workforce, managing payroll, benefits, and compliance with local labor laws. The EOR handles tax withholdings, contracts, and reporting, allowing businesses to hire quickly without establishing a local entity.
