Hiring in New Zealand from Australia

On this page (7 sections)

Overview
Australia and New Zealand at a glance
The differences that matter most
Common compliance traps
How an EOR works in New Zealand
FAQs
Sources

NZDLocal currency

WellingtonCapital

NZST (UTC+12), 2 hours ahead of SydneyTime difference

Overview and why companies expand from Australia to New Zealand

New Zealand is close, culturally similar and in a neighbouring time zone, so teams can work together easily.
Australian citizens and permanent residents can generally live and work in New Zealand without a work visa.
Many Australian businesses already serve New Zealand customers and benefit from local sales and support staff.
The market is a good test bed for international processes before larger expansions.

For Australian employers, New Zealand feels like home with a few important twists. Every employee needs a written agreement, 90-day trial periods are available, there is no statutory redundancy pay and leave is governed by the Holidays Act 2003, which has a reputation for being complex to apply in payroll.

Australia and New Zealand at a glance

Summary only. Figures were checked against the official sources listed below on 2026-10-08. Many rules depend on the employee's award, contract, state or province.
Topic	Australia	New Zealand
Employment contracts	A written contract is not legally required but is standard practice. Employers must give every new employee the Fair Work Information Statement, plus the Casual or Fixed Term Contract Information Statement where relevant. A modern award or enterprise agreement usually sets minimum terms. Fixed-term contracts are generally limited to 2 years or 2 consecutive contracts.	Every employee must have a written employment agreement. Individual agreements must include certain clauses, such as an explanation of how to resolve employment relationship problems and an employment protection provision for restructures.
Probation	No statutory probation. In practice the unfair dismissal "minimum employment period" works as one: 6 months, or 12 months for small businesses with fewer than 15 employees.	Trial periods of up to 90 days are available to all employers if agreed in writing before work starts. Employees dismissed during a valid trial cannot bring an unjustified dismissal grievance. Probationary periods are also allowed.
Working hours	Maximum 38 ordinary hours a week plus reasonable additional hours under the National Employment Standards. Awards set overtime rates. Employees have a right to disconnect outside working hours unless refusing is unreasonable.	No statutory maximum week. The agreement must state the agreed hours, and employees are entitled to paid rest breaks and unpaid meal breaks.
Minimum wage	National Minimum Wage of $26.44 an hour ($1,004.90 a week) from 1 July 2026. Most employees are covered by a modern award with higher minimum rates for their classification.	Adult minimum wage of NZ$23.95 an hour from 1 April 2026, with a lower starting-out and training rate.
Annual leave	4 weeks paid annual leave a year for full-time employees (5 weeks for some shift workers), accruing progressively. Untaken leave is paid out on termination. Many awards add a 17.5% leave loading.	4 weeks paid annual holidays after 12 months of continuous employment.
Sick leave	10 days paid personal/carer's leave a year for full-time employees, plus 2 days unpaid carer's leave and 2 days paid compassionate leave per occasion. All employees can also take 10 days paid family and domestic violence leave a year.	10 days paid sick leave a year after 6 months of continuous employment.
Parental leave	Up to 12 months unpaid parental leave after 12 months of service, with the right to request 12 more. The government funds up to 26 weeks of Parental Leave Pay at the national minimum wage from 1 July 2026, paid through Services Australia rather than the employer.	Up to 26 weeks of government-funded paid parental leave for eligible employees, and up to 52 weeks of job-protected leave depending on length of service.
Public holidays	National public holidays such as New Year's Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day and Boxing Day, plus state and territory holidays. Employees who work on a public holiday are usually paid penalty rates under their award.	12 public holidays a year, including Matariki and a regional anniversary day. Employees who work on a public holiday get time and a half and, in many cases, an alternative holiday.
Retirement and social security	Superannuation Guarantee of 12% of qualifying earnings, paid by the employer on top of wages. Since 1 July 2026 super must be paid each payday and reach the fund within 7 business days (Payday Super). There is no separate employer social security levy.	KiwiSaver employer contributions of at least 3.5% of gross pay from 1 April 2026 for members, matched by a default 3.5% employee rate. Employer contributions are taxed through employer superannuation contribution tax (ESCT).
Payroll taxes	Employers withhold PAYG income tax from wages. Each state and territory charges payroll tax once total Australian wages pass a threshold, for example 5.45% above $1.2 million in NSW and 4.85% above $1 million in Victoria. Workers' compensation premiums are also payable.	Employers deduct PAYE and pay ACC levies for workplace injury cover. There is no state payroll tax.
Notice periods	Employer notice under the National Employment Standards: 1 week (up to 1 year of service) rising to 4 weeks (over 5 years), plus 1 week if the employee is over 45 with at least 2 years of service. Pay in lieu is allowed. Awards set employee notice.	No statutory minimum. The agreement should state the notice period; otherwise reasonable notice applies.
Dismissal protection	Unfair dismissal protection applies after the minimum employment period to employees covered by an award or agreement, or earning under the high income threshold of $190,100 (from 1 July 2026). General protections against adverse action apply from day one. Small businesses can follow the Small Business Fair Dismissal Code.	Employees can raise a personal grievance for unjustified dismissal from day one, unless they were dismissed under a valid 90-day trial. Employers must follow a fair process.
Severance	Statutory redundancy pay of 4 weeks (1 to 2 years of service) rising to 16 weeks (9 to 10 years), then 12 weeks at 10 years or more, when long service leave usually takes over. Small businesses with fewer than 15 employees are generally exempt.	No statutory redundancy pay. Redundancy compensation depends on the employment agreement.
Mandatory benefits	Superannuation, workers' compensation insurance (state-based and compulsory), paid leave under the National Employment Standards and long service leave under state and territory laws, usually after 7 to 10 years of service.	KiwiSaver, ACC cover, holidays and leave under the Holidays Act 2003.
IP and restraint clauses	Post-employment restraints are only enforceable if reasonable to protect a legitimate business interest. Employers generally own IP that employees create in the course of employment. The federal government has proposed banning non-compete clauses for employees under the high income threshold from 2027; this was not law at the last review.	Restraints of trade are enforceable only if reasonable. Employers generally own copyright in work created by employees in the course of employment.
Visas and right to work	Every worker needs Australian work rights, which employers can check through VEVO. Sponsored skilled hires generally use the Skills in Demand (subclass 482) visa, which needs an approved sponsor. Some EORs can sponsor, many cannot.	Australian citizens and permanent residents can live and work in New Zealand without a work visa. Other hires typically need an Accredited Employer Work Visa, which requires the employer to be accredited.

The differences that matter most

Written agreements and good faith

New Zealand's Employment Relations Act requires a written employment agreement and imposes a duty of good faith on both parties. Consultation before decisions that affect employees, such as restructures, is expected and enforceable.

Trial periods

New Zealand allows 90-day trial periods for all employers if agreed in writing before the employee starts work. Australia has no direct equivalent, so make sure your New Zealand agreements include a valid trial clause if you want one.

Personal grievances from day one

Outside a valid trial period, New Zealand employees can raise a personal grievance for unjustified dismissal from day one, not after 6 or 12 months as in Australia. A fair process matters from the start.

KiwiSaver instead of super

There is no 12% super equivalent. Employers contribute at least 3.5% to KiwiSaver for members, and pay ACC levies for workplace injury cover. There is no payroll tax, and no workers' compensation insurance to buy.

Holidays Act calculations

Leave pay calculations under the Holidays Act are notoriously error-prone, particularly for variable hours and allowances. Many large New Zealand employers have had to remediate underpaid holiday pay. Make sure your payroll provider or EOR has proven New Zealand expertise.

Common compliance traps

No written agreement, or using an Australian contract that misses mandatory New Zealand clauses.
Invalid trial periods, for example where the clause is signed after the employee starts.
Restructuring without consultation, which breaches good faith obligations.
Holiday pay errors for employees with variable pay.
Assuming no notice is needed. If the agreement is silent, reasonable notice applies.
Forgetting public holiday rules, including time and a half and alternative holidays.

How an EOR works in New Zealand

A New Zealand EOR employs your hire under a compliant written agreement, runs PAYE payroll, makes KiwiSaver contributions and pays ACC levies. You direct the work. Because the two countries are so close, many Australian companies move to their own New Zealand company once they have a handful of employees, but an EOR is a quick and low-risk way to start.

Frequently asked questions

Can Australians work in New Zealand without a visa?

Australian citizens can generally live and work in New Zealand indefinitely, and Australian permanent residents with a current resident return visa can usually do the same. Other workers will need a visa, often an Accredited Employer Work Visa.

Do I need a written employment agreement in New Zealand?

Yes. Every employee must have a written employment agreement, and individual agreements must include certain information, such as how to resolve employment relationship problems.

What is a 90-day trial period?

If agreed in writing before work starts, a trial period of up to 90 days lets the employer dismiss the employee without them being able to raise a personal grievance for unjustified dismissal. Employers must still act in good faith and follow the agreement.

Is there redundancy pay in New Zealand?

There is no statutory redundancy pay. Compensation depends on the employment agreement. Agreements must include an employment protection provision covering what happens if the business is restructured.

What do I pay into KiwiSaver?

For employees who are KiwiSaver members, employers must contribute at least 3.5% of gross pay from 1 April 2026. Employer contributions are subject to employer superannuation contribution tax (ESCT).

Sources

Last reviewed: 2026-10-08

Figures on this page were checked against these official sources on 8 October 2026. Rates and thresholds change, often on 1 January, 1 April or 1 July, so confirm current figures before relying on them.

New to the model? Start with what an Employer of Record is, then compareEOR costs and pricing models.