Employer of Record in New Zealand (EOR in New Zealand)

Hire Globally, Pay Locally, Expand Effortlessly

New Zealand, a country renowned for its quality of life and natural beauty, offers a favorable and generally stable business environment. However, navigating its unique labor and tax regulations can be challenging. An Employer of Record (EOR) in New Zealand can streamline your operations and ensure compliance with local laws.

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Want to Have a Team in New Zealand TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

3 Steps to Easy Expansion with an Employer of Record in New Zealand

Step 1 – In-Depth Planning & Assessment

Your partnership with a New Zealand EOR, like INS Global, begins with a detailed consultation to align with your business goals. This includes evaluating the number of employees required, their roles, and your timeline for expansion. The EOR customizes its services to fit your needs, ensuring a seamless integration process in New Zealand.

Step 2 – Effective Setup, Recruitment & Onboarding

Whether establishing a new team in New Zealand or relocating current employees, the EOR manages all legal and administrative obligations. This includes handling visas, work permits, payroll, contract management, and ensuring compliance with New Zealand labor laws. As your legal employer in New Zealand, the EOR allows you to avoid the need for setting up a local entity, saving both time and money.

Step 3 – Ongoing HR Management & Compliance

Once your employees are active in New Zealand, the EOR oversees ongoing HR and payroll tasks. This includes salary processing, managing employee benefits, and ensuring compliance with health insurance and social security contributions. The EOR acts as the HR liaison between you and your New Zealand team, taking care of administrative responsibilities and addressing employee concerns, so you can focus on expanding your business with confidence.

Benefits of Partnering with a New Zealand EOR

Rapid Market Entry

Partnering with a New Zealand EOR allows you to quickly establish a presence in the New Zealand market without the need to create a local legal entity, speeding up your expansion process.

Compliance with Local Laws

The EOR ensures your business adheres to New Zealand’s labor laws, including regulations on taxes, employment contracts, and employee benefits, mitigating the risk of legal issues.

Access to Local Talent

The EOR assists in recruiting and managing local and foreign employees, providing access to New Zealand’s skilled workforce while handling all employment-related obligations.

Cost Savings

By utilizing a New Zealand EOR, you avoid the substantial costs of setting up and maintaining a local entity. The EOR manages payroll, benefits, and HR functions, allowing you to focus on strategic business growth.

Flexibility and Scalability

A New Zealand EOR offers the flexibility to scale your operations as needed, without the long-term commitment of establishing a local entity, making it easier to adapt to market demands.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

 5/5

EOR vs. Company Incorporation in New Zealand: Making the Right Choice

While establishing a subsidiary in New Zealand is a common route for local expansion, an EOR offers several key advantages:

Speed – With an EOR like INS Global, the setup process in New Zealand is streamlined, enabling you to start operations and hire employees much faster than the traditional company incorporation process, which can take months. An EOR can have your team operational within weeks or even days.
Compliance – Both EORs and subsidiaries must adhere to New Zealand’s tax laws and labor regulations. EORs possess the expertise to handle these requirements, ensuring ongoing compliance and reducing the risk of legal complications.
Cost – For smaller teams or temporary operations, EOR services are often more cost-effective than establishing a subsidiary, as they avoid the significant upfront costs of incorporation and ongoing administrative expenses. For larger companies, EORs offer efficient solutions that integrate new markets into global payroll systems seamlessly.
Control – While incorporating provides full control over HR, finances, and operations, EORs offer similar control over your workforce while reducing administrative responsibilities and liability.

Key Factors in Selecting the Best Employer of Record in New Zealand

Choosing the right EOR in New Zealand is critical for a successful market entry. Consider these important factors:

Industry Expertise and Market Reputation – Search for a New Zealand EOR with a strong track record and industry credibility, like INS Global. Client testimonials and awards are reliable indicators of their trustworthiness.
Comprehensive Service Range – Verify that the EOR provides all necessary services or can customize their offerings to suit your specific needs, including visa and work permit support, payroll processing, tax compliance, and navigating New Zealand’s labor laws.
Scalability and Adaptability – Choose an EOR that can scale its services as your business grows. Their staff should be capable of managing an expanding workforce and evolving business demands.
Consistent Communication and Clarity – Opt for an EOR recognized for its transparent and regular communication. They should keep you updated on regulatory changes, important deadlines, and potential issues, offering a dedicated contact and online tools for easy access to vital information.
Transparent and Fair Pricing Structure – Evaluate the cost structures of various EOR providers. Ensure their pricing is clear, competitive, and free of hidden charges. Independent advice can help you secure the best value for your EOR in New Zealand.

New Zealand Labor Law Overview

Contracts – In New Zealand, employment contracts, known as employment agreements, are legally required for all employees. These agreements can be individual or collective (negotiated with a union) and must be in writing, outlining key terms such as job duties, pay, working hours, and termination conditions. Employment agreements are governed by the Employment Relations Act (2000), which emphasizes good faith in the negotiation and execution of these contracts. Contracts must comply with minimum standards set by law, including minimum wage rates and leave entitlements. The New Zealand labor market has seen a high compliance rate, with over 90% of employees reportedly having written contracts.
Probationary Periods – In New Zealand, probationary periods, often referred to as trial periods, are allowed but are subject to strict regulations. Under the Employment Relations Act, only businesses with fewer than 20 employees can include a 90-day trial period in their employment agreements, during which an employee can be dismissed without the right to bring a personal grievance for unjustified dismissal. However, the trial period must be agreed upon in writing at the beginning of the employment. This provision is widely used by small businesses, though it has been a topic of debate, balancing the need for flexibility with employee rights.
Working Hours – Standard working hours in New Zealand are typically set at 40 hours per week, usually spread across 5 days, though flexible arrangements are common. The law mandates that any work beyond these hours is considered overtime and must be compensated accordingly, usually at the employee’s normal rate unless otherwise agreed. The Minimum Wage Act 1983 ensures that all employees are paid at least the minimum wage, which as of 2023 is NZD 22.70 per hour. New Zealand also has strong protections against excessive work hours, with the Health and Safety at Work Act requiring employers to manage fatigue and ensure a safe working environment.
Paid Leave – New Zealand labor law provides for various types of paid leave, including annual leave, public holidays, sick leave, and parental leave. Employees are entitled to at least 4 weeks of paid annual leave after 12 months of continuous employment. There are also 12 public holidays, which must be paid if they fall on a normal working day. Sick leave entitlements were increased in 2021, now providing 10 days of paid sick leave per year after 6 months of continuous employment. Additionally, New Zealand has a comprehensive parental leave scheme, offering up to 26 weeks of paid parental leave, reflecting the country’s commitment to supporting work-life balance.
Social Insurance – New Zealand’s social insurance system differs from many other countries as it does not have a mandatory pension system. Instead, it operates a pay-as-you-go public pension system known as New Zealand Superannuation, funded through general taxation. The Accident Compensation Corporation (ACC) provides comprehensive no-fault personal injury insurance, covering everyone in New Zealand. Employees and employers contribute to ACC through levies, with the standard employee levy rate being around 1.39% of their earnings as of 2023. This system ensures that all residents have access to support in the event of work-related injuries, regardless of fault, making it a cornerstone of New Zealand’s social safety net.
Severance Pay – Severance pay in New Zealand is not legally required under the Employment Relations Act unless stipulated in the employment agreement or a collective bargaining agreement. However, redundancy compensation is common practice, especially in larger companies and industries facing economic downturns. When provided, severance pay typically reflects the employee’s length of service, often calculated as 2-4 weeks’ pay for every year of service.

Managing these complexities can take up valuable time and requires constant attention to legal updates. Aligning with an EOR in New Zealand provides a local legal partner who ensures your business remains in compliance with labor laws and protects you from potential risks.

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FAQs

How does an EOR aid in entering the New Zealand market?

An EOR in New Zealand handles all necessary legal, HR, and compliance work, allowing businesses to quickly and efficiently enter the New Zealand market without establishing a local entity.

What financial advantages are there to using an EOR in New Zealand?

Employing an EOR in New Zealand can be more cost-effective than creating a local subsidiary, as it eliminates the need for incorporation and lowers ongoing administrative costs.

Can an EOR manage visa and work permit applications in New Zealand?

Yes, a New Zealand EOR oversees the entire visa and work permit application process, ensuring compliance with local immigration requirements.

What types of businesses benefit the most from EOR services in New Zealand?

Businesses of all sizes benefit from EOR services in New Zealand, particularly those looking for a fast market entry, cost savings, and reduced administrative workload.

How does an EOR ensure compliance with New Zealand labor laws?

EORs in New Zealand have local experts who are knowledgeable about the latest legal updates and manage all compliance activities, ensuring adherence to local labor laws.

What control do I retain over my employees when using an EOR in New Zealand?

While the New Zealand EOR is the legal employer, you maintain considerable control over the daily management and operational decisions regarding your team.

Employer of Record in New Zealand (EOR in New Zealand)

Hire Globally, Pay Locally, Expand Effortlessly

3 Steps to Easy Expansion with an Employer of Record in New Zealand