Employer of Record (EOR) New Zealand

An Employer of Record (EOR) in New Zealand serves as the legal employer for workers, managing various aspects of employment compliance and administration. Often functioning as a Global Professional Employer Organization (Global PEO), the EOR ensures adherence to New Zealand’s labor laws, including payroll, taxes, benefits, and employment agreements.

The EOR in New Zealand is responsible for:

  • Ensuring employment compliance with New Zealand’s local labor laws and regulations.
  • Managing payroll, including the processing and distribution of salaries.
  • Handling tax filings and all necessary employment-related paperwork.
  • Providing payslips to workers and managing benefits according to legal requirements.

Mercans’ Employer of Record services in New Zealand offer a seamless and compliant solution for businesses seeking global expansion without the need for setting up a local entity. With a focus on legal compliance and employee management, businesses can focus on their core activities while we manage the administrative complexities. Partner with Mercans to ensure smooth global mobility and compliant workforce management in New Zealand.

Things you need to know before hiring in New Zealand

Employment Contracts in New Zealand

Key Considerations for Employers

In New Zealand, providing a written employment agreement is a legal requirement for every employee. This contract outlines the rights and responsibilities of both the employer and the employee, ensuring clarity on expectations and entitlements. The agreement must be given before employment starts, allowing the employee to fully understand their role, remuneration, and working conditions. It also provides the opportunity to negotiate terms, especially for union members who are covered by collective agreements.

What Must Be Included:

  • Employer and Employee Details: Names of both parties, making clear who is involved.
  • Job Description: Clear expectations of the work to be done.
  • Wage or Salary: The agreed payment rate and method, ensuring it meets at least the minimum wage.
  • Working Hours: Specifics on hours worked, including start and end times, and days worked.
  • Public Holiday Pay: At least time-and-a-half pay for working on public holidays.

Additional terms can include trial periods, fixed-term agreements (with a genuine reason), and any other provisions mutually agreed upon by both parties, such as notice periods or rest breaks.

Compliance and Penalties:

Failure to provide a written agreement can lead to significant penalties, including fines up to $10,000 for an individual employer or $20,000 for a corporate body. Employers are also required to keep records of the agreements, even if not signed, and provide copies to employees upon request.

Minimum Rights:

Even if not listed in the contract, employees are entitled to certain minimum rights by law, such as the right to annual holidays, minimum wage, and protection from unlawful dismissal. Any contract must align with these legal requirements and the Employment Relations Act 2000.

By ensuring the employment agreement is comprehensive and legally compliant, employers in New Zealand can build strong, transparent, and mutually beneficial employment relationships.

Working Hours

In New Zealand, employment agreements must clearly outline the working hours of the employee, including:

  • The total number of hours to be worked
  • The start and finish times
  • The days of the week the employee is expected to work

The standard workweek is 40 hours, typically spread over five days with eight hours per day, although actual hours may vary based on the industry or job role.

Employers must set a maximum of 40 hours per week (excluding overtime). If fewer than 40 hours are agreed upon, the working hours should ideally be spread over no more than five days per week. Any deviations must be mutually agreed upon by both the employer and the employee.

Overtime

In New Zealand, overtime pay isn’t explicitly required by law. While employers and employees can agree to an overtime rate, there is no legal obligation to pay a higher rate for hours worked beyond the standard 40-hour workweek. Employees working overtime can continue to be paid at their regular hourly wage unless an overtime rate is specifically outlined in their employment agreement.

Typically, overtime rates are seen in hourly wage jobs but are less common in salaried positions. In some cases, employees may receive penal rates, which are additional payments on top of the regular wage. A prime example of this is when an employee works on a Public Holiday—the law mandates a penal rate of time and a half (1.5 times the regular hourly rate).

Probation Period

A probationary period (or trial period) in New Zealand is a temporary employment arrangement that allows employers to assess the suitability of a new employee for a role. It serves as a testing phase where both the employee and employer can evaluate if the job and workplace are the right fit. This period is typically used to assess the employee’s performance, attitude, skills, and compatibility with the work environment.

Key elements of a probationary period in New Zealand include:

  • Duration: The probationary period is often set for 90 days, but it can be shorter depending on the agreement between the employer and employee. The period is meant to allow for an assessment of the employee’s capabilities and overall performance in the role.
  • Employment Agreement: The terms of the probationary period must be clearly outlined in the employment agreement. This includes a clear start and end date for the probationary period. It is important that the employee is fully aware of the terms and agrees to them before starting the role.
  • Termination: During the probationary period, employers have the ability to terminate the employment if they determine that the employee is not a good fit. Importantly, an employee cannot bring a personal grievance for unjustified dismissal during this period, provided the employer follows the correct process. However, this does not limit the employee’s ability to file a grievance on other grounds, such as discrimination or harassment.
  • Notice of Termination: Employers are still required to provide written notice of termination, and they must act in good faith throughout the process. It is often recommended that the employer addresses any performance issues early in the probation period to give the employee a chance to improve. A notice period is usually specified in the agreement, often a one-week notice, but this can vary.
  • Extension and Changes: Once the probationary period is over, the employee is considered a permanent member of the staff, assuming the employer does not terminate the contract within the trial period. The trial period cannot be extended beyond 90 days, and any changes to the probationary terms should be mutually agreed upon in writing.
  • Restrictions for Migrant Workers: Employers who are accredited under the Accredited Employer Work Visa (AEWV) scheme cannot use probationary periods for migrant workers, due to immigration policies aimed at protecting migrant workers from exploitation.

While a probationary period offers flexibility for employers to evaluate new hires, it is crucial to ensure compliance with New Zealand employment law. This includes ensuring that the employee has agreed to the terms of the probation and that the correct process is followed for termination.

13th Month Salary

In New Zealand, there is no legal obligation for employers to provide a 13th month salary. However, it is a common practice for some employers to offer performance-based bonuses at the end of the year, often as a reward for an employee’s contributions or to incentivize future performance. These bonuses are typically tied to both individual and company performance but are not mandated by law.

Termination, Severance Pay and Notice Period

Termination of Employment

Termination refers to the ending of an employment relationship between an employer and an employee. It can occur for several reasons, including dismissal, resignation, redundancy, or mutual agreement.

Dismissal:

  • Dismissal for Misconduct: Employees can be dismissed for serious misconduct (e.g., theft, violence, or dishonesty). Employers are required to follow a fair process, which includes providing warnings and the opportunity for the employee to respond.
  • Dismissal for Poor Performance: If an employee’s performance is substandard, the employer should attempt to manage the issue through training, support, and feedback before proceeding with dismissal.
  • Dismissal for Redundancy: If a position is no longer required due to business changes, redundancy may occur. Employers must have valid reasons and follow a fair procedure, such as consultation and exploring alternative roles within the organization.

Resignation:

  • When an employee decides to resign, they must provide notice to the employer, typically in writing. This allows both parties to plan for the transition. In some cases, resignation can be considered constructive dismissal if the employer’s actions made the employee’s position untenable (e.g., harassment or unreasonable demands).

Constructive Dismissal:

  • Constructive dismissal occurs when an employee feels compelled to resign due to the employer’s actions, such as creating a hostile work environment or failing to address serious issues. Employees who believe they have been constructively dismissed may file a personal grievance.

Severance Pay

Severance pay is a financial package provided to an employee upon the termination of their employment. This typically applies in cases of redundancy but may also be negotiated in other termination situations. The payment varies depending on the terms of the employment agreement or company policy.

Eligibility:

  • Redundancy: In cases of redundancy, employees may be entitled to severance pay, which is generally calculated based on their length of service and salary. For instance, an employee with several years of service might receive a severance package that includes a set number of weeks’ pay for each year worked.
  • Dismissal or Resignation: Severance pay is not always provided if the employee is dismissed for misconduct or voluntarily resigns. However, in some cases, it can be negotiated as part of the separation terms.

Amount and Calculation:

  • The amount of severance pay is not mandated by law in many jurisdictions, but certain conditions may influence the payment, such as length of service, the employee’s position, and company policies. Employers may offer more than the statutory minimum to avoid disputes or provide a smoother transition for the employee.

Payment Structure:

  • Severance pay is typically paid as a lump sum and may be provided in addition to the employee’s final paycheck. It may also cover accrued benefits such as vacation time or unused sick leave.

Notice Period

A notice period is the time between when one party (employer or employee) informs the other that the employment relationship is ending and the actual cessation of employment. The notice period allows both parties to prepare for the change.

Notice Period in Employment Agreements:

  • The notice period is often outlined in the employment agreement. It specifies how much notice an employee or employer must give before termination. For example, an employee may need to give two weeks’ notice, and the employer may require the same from the employee.

Length of Notice:

  • If the employment agreement does not specify the notice period, it is typically based on fairness and reasonableness. The length may depend on the employee’s position, the company’s practices, and how long the employee has worked for the company. Commonly, notice periods are between 2 and 4 weeks, but this can vary.

Waiving or Reducing the Notice Period:

  • Employers and employees may agree to waive or reduce the notice period. For example, an employee may wish to leave immediately, or an employer may agree to release an employee early. In such cases, the employer may still be required to pay for the notice period if the employee does not work it.
  • If an employee decides not to work their notice period, they may be required to compensate the employer, typically by forfeiting payment for the time they do not work. Similarly, employers may pay the employee in lieu of notice if they do not wish the employee to work through their notice period.

Final Day Responsibilities:

On the employee’s last day, both the employer and employee should ensure a smooth transition. Tasks may include returning company property, handing over work, and completing final documentation. The employer should ensure that all financial 

Employees vs Independent Contractors

Understanding the distinction between an employee and an independent contractor is crucial for both employers and workers. The two types of workers are governed by different laws, rights, and obligations. While both contribute to a business’s operations, their legal status and the benefits or protections they receive can differ greatly. Employees are typically entitled to a range of statutory rights under employment law, while contractors operate under different terms and conditions, mainly governed by contract law.

Employees generally work under an employment agreement, receive benefits such as paid leave, and are protected by employment laws, including minimum wage, anti-discrimination laws, and health and safety regulations. On the other hand, independent contractors are self-employed, work based on the terms of a contract for services, and do not enjoy the same legal protections as employees. Instead, contractors are governed by general civil law, which provides them with fewer employment rights but greater flexibility in their work.

In this section, we will explore the key differences between employees and independent contractors and provide a helpful comparison table to clarify their respective legal status and obligations.

Comparison Table: Employees vs Independent Contractors

AspectEmployeeIndependent Contractor
Employment AgreementHas an employment agreement with the employer.Works under a contract for services, not an employment agreement.
Taxation and DeductionsEmployer deducts tax and ACC contributions from wages.Responsible for managing their own tax and ACC contributions.
Rights under Employment LawCovered by employment laws, including rights to sick leave, annual leave, and public holidays.Not covered by most employment laws, except for health and safety.
Job ControlEmployer has control over the employee’s work (e.g., working hours, tasks).More control over how, when, and where the work is done.
PaymentPaid a salary or wage, with regular pay periods.Paid based on agreed terms for services rendered, typically invoiced per job or hourly.
Job SecurityHas a more permanent relationship, subject to termination only under lawful conditions.Typically engaged for a fixed term or project with no guaranteed long-term employment.
Leave EntitlementsEntitled to paid annual leave, sick leave, and other statutory benefits.Not entitled to paid leave or benefits (unless specified in the contract).
Health & SafetyCovered by health and safety laws; employer is responsible for workplace safety.Health and safety laws apply but contractor is often responsible for their own safety and equipment.
Employment RelationshipWorks for an employer, who is responsible for ensuring compliance with employment laws.Works for themselves, managing their own business operations.
GrievancesCan file personal grievances under the Employment Relations Act 2000.Cannot file personal grievances; disputes are handled under contract law.

Legal Tests for Determining Employee vs Contractor Status

In New Zealand, courts and employment authorities apply several legal tests to determine whether a person is an employee or an independent contractor. These tests consider various aspects of the working relationship, and no single test will provide a definitive answer. The key tests include:

  • Intention Test: This looks at the intention of both parties when entering into the agreement, such as whether both the employer and the worker intended to establish an employment relationship or a contract for services.
  • Control vs Independence Test: This test examines who has control over how, when, and where the work is carried out. An employee typically works under the direction of the employer, while a contractor has more independence.
  • Integration Test: This test considers whether the worker is integrated into the employer’s business (suggesting an employment relationship) or whether they operate independently, as would be the case for a contractor.
  • Fundamental/Economic Reality Test: This test looks at the actual nature of the working relationship, considering factors such as the worker’s ability to make a profit or suffer a loss based on the work they perform.

What Happens if the Status is Misclassified?

If a worker is misclassified as a contractor when they should have been an employee, they may miss out on critical benefits like minimum wage, annual leave, and sick leave. Additionally, they could end up paying more in taxes and ACC contributions than necessary. In such cases, workers can seek resolution by contacting employment advisory services or pursuing a personal grievance. Employers also face potential legal risks if they incorrectly classify workers, including liability for unpaid entitlements.

Social Security in New Zealand

In New Zealand, several tax-related matters apply to individuals, ranging from workplace-based superannuation savings to taxes on non-cash benefits and accident compensation premiums. Below is an overview of key taxes affecting employees and employers, designed to help individuals navigate their obligations and entitlements in the system.

KiwiSaver Scheme

  • Overview: The KiwiSaver scheme is a voluntary, workplace-based superannuation savings scheme introduced on 1 July 2007. It is available to all New Zealand residents over the age of 18, though participation is not compulsory.
  • Contribution Rates: Both employees and employers must contribute a minimum of 3% of the employee’s gross salary towards KiwiSaver.
  • Employer’s Obligations: Employers must calculate Employer Superannuation Contribution Tax (ESCT) based on the employee’s salary and employer contributions to KiwiSaver. Contributions to other superannuation funds may be subject to Fringe Benefit Tax (FBT).

Employer Superannuation Contribution Tax (ESCT)

  • Overview: The Employer Superannuation Contribution Tax (ESCT), also known as specified superannuation contribution withholding tax, applies to employer contributions to approved superannuation schemes, including KiwiSaver.
  • Calculation: ESCT rates are based on the employee’s annual salary and the employer’s gross contribution. The rate varies depending on the length of employment with the employer.
  • Other Considerations: Employers may also pay FBT on contributions to other superannuation schemes that do not meet the requirements for ESCT.

Accident Compensation Levies

  • Overview: New Zealand operates a statutory-based accident compensation scheme that provides insurance for work-related accidents. This scheme is funded through premiums paid by both employers and employees.
  • Employer Premiums: Employers must contribute by paying premiums that cover work-related injuries. These include a residual claims levy and an employer levy, which are calculated based on industry risk and the employer’s payroll.
  • Employee Premiums: Employees contribute to non-work accident insurance through compulsory deductions, which are separate from the work-related insurance paid by employers.

Fringe Benefits Tax (FBT)

  • Overview: Fringe Benefit Tax (FBT) is imposed on employers when they provide non-cash benefits (fringe benefits) to employees. These benefits can include items such as company cars, loans, and employer-paid health insurance premiums.
  • FBT Calculation: FBT is calculated based on the net remuneration of the employee, with rates varying from 11.73% to 63.93%, depending on the employee’s salary. Employers may choose between different methods to calculate FBT:
    • Single Rate Method: Applying a flat rate of 63.93% across all fringe benefits.
    • Alternate Rate Methods: Calculating FBT at different rates for attributed versus non-attributed benefits.
  • FBT Filing: FBT is filed quarterly or annually, depending on the employer’s size and the amount of PAYE deductions.

Payroll in New Zealand

Minimum Wages:  

In New Zealand, the minimum wage is determined by the government and is reviewed annually. It applies to all employees aged 16 and over, ensuring that workers receive fair compensation for their labor. The rates are set before tax and vary depending on the worker’s age and level of experience.

Minimum Wage Rates (Effective 1 April 2024)

  • Adult Minimum Wage: $23.15 per hour. This applies to employees aged 16 or over who are not in their first six months of employment or undergoing training.
  • Starting-out Minimum Wage: $18.52 per hour. This applies to employees under 20 who are starting out in their employment or have been with the employer for less than six months.
  • Training Minimum Wage: $18.52 per hour. This rate is for employees under 20 who are in a formal training agreement for their job.

The minimum wage also applies to temporary migrant workers in New Zealand, who are entitled to the same employment rights, including minimum wage, as New Zealand citizens.

Employees are required to be paid at least the applicable minimum wage for all hours worked, unless specified otherwise in their employment agreement. If an employee has negotiated a higher pay rate than the minimum wage, they must be paid at least that agreed amount.

Payroll Cycle: 

In New Zealand, the payroll cycle refers to the frequency and timing of employee payments, which can vary depending on the employer’s practices and the employment agreement in place. The payroll cycle is crucial for both employers and employees to ensure compliance with employment laws and to maintain clarity around pay expectations.

Pay Period

In New Zealand, the pay period refers to the interval between each paycheck, which may be weekly, fortnightly (every two weeks), or monthly. This frequency impacts how wages are calculated for both hourly and salaried workers. Hourly employees typically receive pay after the pay period ends, while salaried employees may be paid partially in advance and partially in arrears.

Payday is the set day employees receive their wages, which aligns with the agreed-upon schedule, such as every Thursday (weekly), every second Wednesday (fortnightly), or the last day of the month (monthly). Employers must communicate this schedule in the employment agreement to avoid confusion.

If payday falls on a holiday or weekend, employers must inform employees of any changes in advance. Clear communication regarding pay periods, payday schedules, and any adjustments ensures transparency and helps prevent disputes.

Mercans’ payroll capabilities

  • Payroll Cycle: Experience streamlined payroll management with Mercans’ full-service payroll cycle support in New Zealand. We ensure timely, accurate payments to employees and contractors in local currency, making the entire payroll process efficient and fully compliant with New Zealand’s standards.
  • Payroll Setup, Processing, and Administration: Mercans offers more than basic payroll services; we deliver complete, end-to-end solutions. From detailed payroll setup to accurate processing and seamless administration, we handle every step with a focus on precision and compliance. With Mercans, you can trust your payroll is managed by experts, freeing you to focus on your core business.
  • Statutory Filings and Payments: Navigate New Zealand’s regulatory landscape with ease. Mercans takes care of all statutory filings and payments, ensuring your business meets compliance requirements on time. Rely on us for accurate submissions, providing peace of mind and confidence in your regulatory compliance.

Personal Income Tax in New Zealand

In New Zealand, personal income tax applies to all residents on their worldwide income, while non-residents are taxed only on income sourced from New Zealand. The country employs a progressive tax system, where the rate of tax increases as income rises.

Personal Income Tax Rates

As of 31 July 2024, the personal income tax rates in New Zealand are as follows:

Taxable Income (NZD)Marginal Tax Rate (%)
0 - 15,60010.5%
15,601 - 53,50017.5%
53,501 - 78,10030.0%
78,101 - 180,00033.0%
180,001 and above39.0%

These rates reflect a recent modification in New Zealand’s income tax system, which aimed to adjust the thresholds to account for inflation and income distribution.

New Zealand Employee Hiring Cost

When hiring an employee in New Zealand, the employer needs to consider not just the gross salary but also the additional employer costs associated with employing staff. These costs can include mandatory contributions like employer superannuation contributions, accident compensation levies, and other statutory requirements.

Below is an example that outlines the cost of hiring an employee earning a gross salary of NZD 100,000 annually.

Salary Breakdown

DescriptionAmount (NZD)
Gross annual salary100,000
Annual employer costs3,210
Total annual cost103,210

For example, for an employee with a gross annual salary of NZD 100,000, the employer would also incur costs like KiwiSaver contributions (3% of salary), which would amount to NZD 3,000, and accident compensation levies, around NZD 210. These employer contributions and levies add to the total cost of employment. When combined, the total annual cost of hiring this employee would be NZD 103,210. Therefore, employers need to consider both salary and additional statutory costs when budgeting for new hires in New Zealand.

Employee Benefits in New Zealand

Mandatory Employee Benefits in New Zealand

In New Zealand, two key employee benefits are mandatory by law:

  • KiwiSaver (Retirement Savings): KiwiSaver is a voluntary, government-supported retirement savings scheme available to employees aged 18 to 65. While participation is voluntary, employers are legally required to contribute at least 3% of an employee’s gross wages to their KiwiSaver fund. These contributions are subject to Employer Superannuation Contribution Tax (ESCT).
  • Accident Compensation Scheme (ACC): New Zealand offers accident insurance cover for all citizens, residents, and temporary visitors through the Accident Compensation Corporation (ACC). This “no-fault” scheme covers injuries regardless of who caused them and helps with rehabilitation and treatment costs to assist individuals in returning to work and daily life.

Supplemental Employee Benefits

In addition to the mandatory benefits, many companies offer supplemental benefits, particularly in competitive sectors such as technology, finance, and pharmaceuticals:

  • Group Life/Total Permanent Disability (TPD) Insurance: This benefit is often offered by companies as part of an employee’s insurance plan. It typically covers a multiple of the employee’s salary, with companies in the upper quartile offering 3-4 times the annual salary. It provides financial protection for the employee’s family in case of death.
  • Group Income Protection (Salary Continuance): A structured insurance plan providing a replacement income (usually 75% of annual salary) for employees who are unable to work due to illness or injury. This benefit is fully funded by employers, with a typical waiting period of 30 days and coverage up to age 65.
  • Group Private Medical Insurance: While New Zealand’s public healthcare system offers coverage for essential services, private health insurance is commonly provided by companies in competitive sectors. Coverage may include hospital care, specialist consultations, dental, optical, and more. Typically, the employer covers 100% of the employee’s costs and 75% of the family coverage.
  • Employee Assistance Program (EAP): EAPs are widely offered to support employees’ mental health and overall wellbeing. They provide 24/7 access to counseling services and offer insights into employee health trends to help businesses tailor wellbeing strategies.

Common Employee Perks

In New Zealand, companies often provide additional perks to attract and retain talent:

  • Learning and Development: Many employers support ongoing education with study leave policies, with a median offering of 5 days of paid leave for professional development.
  • Additional Leave Options: Companies may offer additional leave beyond statutory requirements, such as charity leave, celebration leave, and domestic violence or bereavement leave.
  • Flexible Working Arrangements: Post-pandemic, hybrid work models are common, allowing employees to work both in the office and remotely for a more balanced work-life environment.
  • Business Travel Insurance: Companies often cover the costs of business-related travel, and some extend this to personal travel, especially for employees who travel frequently for work.
  • Lunch and Beverages Allowances: A small but growing trend among companies is providing onsite lunches during the workweek, encouraging office attendance and engagement.
  • Mobile Phones: Many companies provide employees, especially those in client-facing roles, with mobile phones for work-related use, at no cost to the employee.

Work Permit in New Zealand

In New Zealand, foreign nationals wishing to work are generally required to obtain a work permit, unless they are citizens or residents. The country’s work permit policies are designed to balance the protection of employment opportunities for local workers with the need to address skill shortages in key industries. The government focuses on attracting skilled professionals, especially in sectors such as healthcare, agriculture, technology, and construction, where there are significant gaps in the local labor market.

Types of Work Permits

New Zealand offers several types of work permits, depending on the applicant’s employment situation and skills:

  • Temporary Work Visas: These are available for individuals who have a confirmed job offer, are attending an event, or wish to gain work experience. It’s also applicable to those planning to join a business partner in the country.
  • Essential Skills Work Visa: Issued to workers whose jobs are listed under New Zealand’s skill shortage categories, such as the Long-Term Skills Shortage List or Immediate Skills Shortage List. This visa is based on the ANZSCO classification system and can be granted for up to three years depending on the skill level of the role.
  • Entrepreneur Work Visa: For individuals looking to establish or purchase a business in New Zealand. This visa is issued in two stages: an initial 12-month period for setting up the business, followed by an additional 24 months to complete the business establishment.

Key Requirements for Work Permits

The requirements for a work permit in New Zealand vary based on the type of visa being applied for. Some general criteria include:

  • Age: Applicants should be 55 years or younger.
  • Salary: The minimum salary requirement is NZ$55,000 annually for most work visa categories.
  • Job Offer: Applicants must have a confirmed job offer, typically for a role that meets certain skills and salary thresholds.
  • Skill Level: For the Essential Skills Work Visa, the job must fall under a high-skill category (ANZSCO levels 1-3), and the applicant’s salary should meet a minimum level.

Required Documents

To apply for a New Zealand work permit, applicants must submit various documents, including:

  • Valid passport
  • Job offer letter detailing salary, job description, and other relevant conditions
  • Medical certificates and chest X-ray
  • Police clearance from the applicant’s home country or any country lived in for 5+ years
  • Passport-sized photographs

Application Process

The process to apply for a New Zealand work permit is relatively straightforward compared to other countries. Here’s a summary of the steps:

  • Employee’s Role: Complete the visa application form.
  • Employer’s Role: Ensure the job is eligible under the skill shortage list and meets other employment criteria. The employer also needs to fill out supplementary forms.
  • Submission: Submit the application to Immigration New Zealand (INZ).

Processing Time

The processing time for work permit applications in New Zealand varies. For Essential Skills work visas, the average processing time is around 30 to 45 days. However, this can differ based on the applicant’s circumstances and the visa category.

By adhering to the work permit regulations, New Zealand ensures that foreign workers contribute to the economy in areas where there are skill shortages, while also safeguarding employment opportunities for local workers.

EOR Solutions in New Zealand

  • Employer of Record (EOR) for Pre-Selected Candidates: Mercans offers reliable Employer of Record (EOR) solutions for businesses that have already identified candidates they wish to hire in New Zealand. Our comprehensive services cover the entire employee lifecycle, ensuring full compliance with New Zealand’s labor laws, including payroll, benefits, and tax management.
  • EOR + Recruitment Services: For businesses looking to source fresh talent in New Zealand, our integrated EOR and recruitment services simplify the process of expanding into the local market. By leveraging our extensive network and expertise, we assist you in recruiting, onboarding, and retaining top talent, making your expansion into New Zealand seamless and efficient.
  • Visa Sponsorship and Global Mobility Support: Mercans’ global mobility and visa sponsorship services help businesses manage the complexities of relocating employees to New Zealand. We handle all immigration and compliance requirements, ensuring smooth transitions and full legal adherence for your expatriate employees.
  • Assistance on Record (AOR) for Contractor Payments: Our Assistance on Record (AOR) services streamline contractor payments in New Zealand while ensuring compliance with local tax and labor laws. From tax withholding to compliance with New Zealand’s employment regulations, we handle it all, letting you focus on growing your business.
  • Transitioning Freelancers to Full-Time Employees: Mercans supports businesses in transitioning contractors or freelancers into full-time employees in New Zealand. We ensure that this process complies with local labor laws, helping you formalize relationships with skilled workers and make them a permanent part of your workforce.
  • HCM System Integration: With Mercans’ EOR services, you can easily integrate your existing Human Capital Management (HCM) system for real-time data synchronization and enhanced compliance. Our streamlined approach optimizes workforce management, payroll operations, and legal compliance in New Zealand, helping businesses improve HR processes and operational efficiency.

Best Employer of Record New Zealand

Why Mercans Leads in Employer of Record (EOR) Services in New Zealand:

  • Compliance with Key Employment Standards: Mercans ensures strict adherence to New Zealand’s Employment Relations Act (ERA) and engages fully with the Employment Relations Authority (ERA), ensuring that businesses meet local labor obligations and maintain fair, lawful employment practices. This thorough understanding of New Zealand’s employment laws enables companies to operate with full legal security.
  • Independent, In-House Operations: Mercans operates independently, without reliance on third-party providers, delivering customized and responsive EOR solutions based on the unique needs of each client. This setup allows Mercans to offer consistent and reliable employment services.
  • Flexible Employment Solutions: Mercans provides a range of flexible employment options, supporting full-time employees, contractors, freelancers, and expatriates, making it easier for businesses to meet diverse workforce needs efficiently.
  • Scalable Support for Large Enterprises: Designed to support growing enterprises, Mercans offers scalable EOR services that adapt to complex organizational structures, allowing companies to navigate New Zealand’s regulatory environment with ease.
  • Multi-Currency Payroll Processing: Mercans’ multi-currency payroll system allows for efficient payroll management for companies operating globally, supporting seamless financial operations in New Zealand.
  • Expertise in Multi-Country Payroll: With a vast international network, Mercans delivers integrated payroll solutions for companies with operations across multiple countries, ensuring efficiency and consistency for multinational teams.
  • Data Security and Compliance: Mercans adheres to GDPR and holds SOC 1 and SOC 2 certifications, ensuring data protection in line with global standards and a strong commitment to client confidentiality.
  • ISO-Certified Quality Assurance: Mercans upholds high standards in service and security with ISO 20000 and ISO 27001 certifications, demonstrating excellence in IT service management and information security.
  • Application Security Standards: With compliance to OWASP ASVS 3.0, Mercans ensures rigorous security in its applications, safeguarding against cybersecurity threats.
  • Social Security Compliance: Understanding New Zealand’s social security requirements, Mercans ensures employee benefits and contributions comply fully with local standards, helping businesses provide robust and compliant benefits packages.

By offering a blend of local expertise, regulatory compliance, and scalable solutions, Mercans stands out as a leading choice for Employer of Record services in New Zealand.

Conclusion

Expand your business smoothly with Mercans’ comprehensive Employer of Record (EOR) services in New Zealand. Mercans handles everything from payroll management and legal compliance to seamless workforce integration, ensuring a streamlined entry into the New Zealand market. Supported by industry expertise and customized solutions, we’re here to meet your business needs every step of the way.

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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