Hiring in New Zealand

The agreement sets out role, salary in NZD, place of work, agreed hours, leave, notice and any restraint of trade, plus a plain explanation of how employment problems are resolved. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

The employee must be given the draft and a reasonable chance to take independent advice before signing. English is the standard contract language for commercial roles.

Fixed-term agreements need a genuine reason stated in writing, or the employee can treat the role as permanent. Most EORs default to permanent terms.

A trial period lets the employer dismiss within 90 days without an unjustified dismissal claim, but it only applies to someone the employer has never employed before and cannot be used for Accredited Employer Work Visa holders. Probation still needs a fair process before any dismissal.

Some EORs avoid trial periods as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at whatever rate the agreement sets, and every hour worked must average out at or above the adult minimum wage of 23.95 NZD, salaried staff included.

Most professional hires are on salaries that cover reasonable extra hours, so overtime is a contractual matter rather than a statutory one. Put the position in writing either way.

Market practice for professional roles is 4 weeks, with some employers adding a fifth, so budget on the statutory figure unless you plan to compete on leave.

Paid parental leave of up to 26 weeks is funded by the government through Inland Revenue, so the employer carries no salary cost unless the contract adds a top-up. The Employment Leave Act 2026 replaces these rules from 6 August 2028, moving annual and sick leave to hours-based accrual from day one, so confirm the EOR's payroll is ready.

Notice follows the employment agreement, commonly 2 to 4 weeks, with pay in lieu where the agreement allows it. Redundancy pay is a matter of contract, but the business reason must be genuine and the employee must be consulted first.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, holiday pay and any contractual redundancy pay.

Employees have 90 days to raise a personal grievance, and the client can be joined to the claim as a controlling third party, so keep a documented reason. Since February 2026, employees earning 200,000 NZD or more cannot bring an unjustified dismissal claim unless the agreement opts them back in.

Private medical cover, life and income protection insurance are common for professional roles even though they are not mandatory. Accident injuries are already covered by ACC on a no-fault basis, so medical cover tends to focus on elective and specialist care.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer costs add 3.5% KiwiSaver for members plus the ACC work levy, which is typically well under 1% of pay for office roles. That is before the EOR fee.

Holiday pay is the trap. Holidays Act errors have left many employers with large backdated remediation bills, so ask how the EOR's payroll calculates leave and final pay.

Ask whether the EOR holds triangular employer accreditation. Without it, an EOR cannot place a visa holder with a client, and the market-rate and job check rules apply to the sponsor, not to you. Australian citizens can work without a visa.

Set start dates after approval, not before.

Get the data handling terms in the service agreement, not just the privacy notice. Disclosures overseas need comparable safeguards under information privacy principle 12.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick, but the running cost is the point: a director resident in New Zealand (or in Australia with an Australian directorship), annual returns, accounting, payroll software and, for larger overseas-owned companies, audited accounts set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.