Employer of Record in New Zealand

An Employer of Record in New Zealand acts as the legal employer, managing employment contracts, payroll, and compliance on behalf of the client company.

Local hiring is complex without a local entity. Employers must meet payday filing obligations, contribute to KiwiSaver at 3.5% from April 2026, and issue written employment agreements that satisfy the Employment Relations Act's strict requirements.

• EOR hiring typically completes in days, compared to 2 to 4 weeks for entity setup.
• KiwiSaver employer contribution rate rises to 3.5% from April 2026.
• Standard notice periods run 2 to 4 weeks depending on the employment agreement.
• Minimum wage increases to NZD 23.95 per hour from April 2026.

This page covers hiring options, employment law, payroll obligations, visa requirements, costs, and termination procedures in New Zealand.

Gloroots operates as an EOR provider in New Zealand. This guide is written to help readers evaluate all available hiring paths, not only the Gloroots solution.

What Is an Employer of Record in New Zealand?

An EOR becomes the statutory employer on record in New Zealand, taking on responsibility for employment contracts, PAYE withholding, KiwiSaver contributions, and statutory leave obligations on behalf of the client company.

Foreign companies use an EOR to hire New Zealand talent without registering a local entity. It also suits companies testing the market before committing to incorporation.

The workflow runs as follows: the client selects a candidate; the EOR issues a compliant employment agreement under the Employment Relations Act; the EOR runs payday filing, KiwiSaver contributions, and ACC levies; the client directs day-to-day work while the EOR manages all statutory obligations. To understand the full mechanism, see how does EOR work.

Your Hiring Options in New Zealand: EOR vs. Entity vs. PEO vs. Contractor

Four paths exist for hiring in New Zealand: entity setup, an Employer of Record, a professional employer organisation (PEO), and engaging an independent contractor. Each carries different compliance ownership and cost structures. Explore EOR services to compare options.

Entity setup suits companies with long-term, large-scale New Zealand operations that justify incorporation costs and ongoing compliance overhead.

Contractors work for project-based, genuinely independent engagements. Misclassification risk under New Zealand law is significant, with penalties starting from NZD 30,000.

Note: Running payroll from headquarters is a valid short-term option for companies with existing cross-border payroll arrangements. This is distinct from EOR or entity setup.

Path	Setup Time	Compliance Ownership	Cost Structure	Best For
Entity Setup	2 to 4 weeks	Employer	Incorporation, legal, ongoing governance fees	Large, permanent NZ operations
EOR	Days	EOR provider	Per-employee monthly fee	Fast market entry, small teams, pilot hires
PEO	1 to 2 weeks	Shared between PEO and employer	Per-employee monthly fee plus employer retains entity	Companies with an existing NZ entity seeking HR support
Contractor	Immediate	Contractor (with misclassification risk)	Project or hourly rate	Short-term, genuinely independent project work

How to Hire in New Zealand Through an EOR: Step by Step

Hiring through an EOR in New Zealand follows six steps, from the initial hiring decision through to offboarding.

Each step has a defined owner: either the client company or the EOR. Understanding that split before you start reduces delays and avoids compliance gaps later in the employment lifecycle.

The steps below cover provider selection, contract issuance, payroll setup, onboarding, ongoing employment management, and offboarding. Following them in order keeps the process predictable and auditable.

Step 1: Decide Between EOR and Entity

Assess hiring volume, timeline, and long-term New Zealand strategy. For fewer than five employees or a first market entry, EOR is typically faster and lower-risk than entity setup.

Step 2: Vet and Select an EOR Provider

Confirm the EOR holds its own New Zealand legal entity rather than operating through a partner network. Verify IRD registration, payday filing compliance, and KiwiSaver administration experience before signing.

Step 3: Draft and Issue a Compliant Employment Agreement

The EOR issues a written individual employment agreement covering role, pay at or above NZD 23.95/hour, hours, leave entitlements, notice period, and termination procedures under the Employment Relations Act.

Step 4: Onboard and Register Statutory Requirements

The EOR registers the employee with IRD, enrolls them in KiwiSaver unless they opt out, sets up ACC levy classification, and delivers the mandatory Health and Safety at Work Act induction.

Step 5: Run Compliant Payroll and File with IRD

The EOR processes payroll on the agreed cycle, deducts PAYE and the employee ACC levy, contributes the 3.5% KiwiSaver employer share, and files employment information with IRD within two working days of each payday.

Step 6: Manage Offboarding and Exit

The EOR processes the final payroll including outstanding salary and accrued holiday pay, makes final KiwiSaver contributions, files closing PAYE with IRD, recovers company property, and issues a certificate of employment.

How to Choose the Right EOR in New Zealand

Selecting the right EOR for New Zealand requires evaluating several operational and legal criteria before signing a contract. Use the factors below to assess any provider.

Not every EOR operates with its own registered entity in New Zealand. Some rely on partner networks, which adds a layer of risk to your employment obligations. Review each criterion carefully when comparing options. For a broader comparison framework, see our guide on the best employer of record providers.

The six criteria below cover the core areas where EOR providers differ most significantly in New Zealand.

Local Legal Knowledge and Own Entity

Confirm the EOR holds its own registered New Zealand legal entity with direct IRD registration, not a reseller or partner-network arrangement.

Support Model and Responsiveness

Confirm the EOR assigns a dedicated account manager with direct knowledge of the Employment Relations Act and Holidays Act obligations specific to New Zealand.

Pricing Transparency

Confirm whether the EOR charges a flat monthly fee or a percentage of salary, and whether KiwiSaver employer contributions and ESCT are included or billed separately.

Security and Data Compliance

Verify the EOR complies with New Zealand's Privacy Act 2020 for employee data handling and holds SOC 2 or an equivalent security certification.

Integration Capability

Check whether the EOR's payroll system connects with your HRIS or finance tools and can produce NZ-format payslips and IRD-compliant reports.

Immigration and Visa Sponsorship Capability

Confirm whether the EOR holds Accredited Employer status with Immigration New Zealand, which is required to sponsor workers on the Accredited Employer Work Visa (AEWV).

Workforce and Talent Pool in New Zealand

New Zealand's workforce numbers approximately 2.9 million people. The median age is 38.4 years, over 50% of adults hold tertiary qualifications, and the country produces a strong pipeline of STEM and healthcare graduates.

Key hiring hubs include Auckland for ICT and finance, Wellington for government and creative roles, Christchurch for engineering and agritech, and Hamilton and Dunedin for healthcare and biotech.

Workplaces operate with flat hierarchies and a strong expectation of work-life balance. English is the primary business language. Average gross monthly salary sits at approximately NZD 6,500 to 6,900 (USD 4,000 to 4,250) as of early 2026, with higher rates in ICT and engineering. Around 260,000 people in New Zealand work remotely. Companies expanding across the Asia-Pacific region also consider the employer of record Australia option when building regional teams.

Indicator	Details
Workforce Size	Approximately 2.9 million
Median Age	38.4 years
English Proficiency	Primary business language
Top Talent Hubs	Auckland, Wellington, Christchurch, Hamilton, Dunedin
Key Industries	ICT, Engineering, Healthcare, Agritech, Finance, Creative Industries

Employment Law Essentials in New Zealand

New Zealand employment law sets clear obligations for every employer. The Employment Relations Act 2000, the Holidays Act 2003, and the Health and Safety at Work Act 2015 form the core legal framework.

Every employee must have a written employment agreement covering role, pay, hours, leave, and termination. Employers must also understand the distinction between two types of trial arrangements.

• 90-day trial period: Available only to employers with fewer than 20 employees. Allows dismissal within 90 days without a personal grievance claim.
• Probationary period: Available to all employers, typically 3 to 6 months. Standard employment protections apply throughout.

Rest and meal break entitlements are statutory. Employees working shifts longer than 4 hours are entitled to a 30-minute unpaid meal break and two 10-minute paid rest breaks per standard working day.

From 1 April 2026, the adult minimum wage is NZD 23.95 per hour. Employers must update payroll each April when the Inland Revenue Department announces the annual adjustment.

Fringe Benefit Tax (FBT) applies to non-cash benefits provided to employees. The FBT rate ranges from 11.73% to 63.93%, depending on the benefit type and the employee's income. This range directly affects how employers structure benefits packages, including vehicles, health insurance, and low-interest loans.

Gloroots tracks statutory updates across all these areas and applies changes to payroll and contracts without requiring employer intervention.

Employment Contracts

Under the Employment Relations Act 2000, every employee in New Zealand must have a written individual or collective employment agreement covering role, pay, hours, leave, and termination. Gloroots provides compliant, localized agreements.

Working Hours, Overtime, and Rest Breaks

Employees working more than 4 hours are entitled to a 30-minute unpaid meal break and two 10-minute paid rest breaks per standard working day.

Minimum Wage

From 1 April 2026, the adult minimum wage is NZD 23.95 per hour. The Starting-Out and Training Wage is NZD 19.16 per hour, set at 80% of the adult rate.

Employers must update payroll each April when the IRD announces the annual adjustment. Gloroots automatically applies wage floor updates to payroll, removing the risk of a missed adjustment.

Leave and Statutory Benefits in New Zealand

New Zealand law sets minimum leave entitlements for all employees. Employers must track each type accurately, as entitlements vary by length of service and employment type.

Partner's leave (paternity leave) is unpaid. Employees with 6 or more months of service averaging 10 or more hours per week are entitled to 1 week. Those with 12 or more months of service at the same average hours are entitled to 2 weeks.

Employees are also entitled to 10 days of unpaid special leave for pregnancy-related medical appointments. Fixed-term employees engaged for less than 12 months may receive 8% of gross earnings as holiday pay in lieu of 4 weeks annual leave.

New Zealand observes 11 public holidays each year:

• New Year's Day (1 January)
• Day After New Year's Day (2 January)
• Waitangi Day (6 February)
• Good Friday (April, date varies)
• Easter Monday (April, date varies)
• Anzac Day (25 April)
• King's Birthday (first Monday, June)
• Matariki (date varies, June or July)
• Labour Day (fourth Monday, October)
• Christmas Day (25 December)
• Boxing Day (26 December)

The table below summarizes key leave entitlements.

Leave Type	Entitlement	Pay Rate	Key Conditions
Annual Leave	4 weeks	Paid	After 12 months continuous employment; 8% in lieu for fixed-term under 12 months
Sick Leave	10 days per year	Paid	After 6 months; unused leave carries over up to 20 days
Parental Leave	Up to 52 weeks (paid + unpaid)	Government-funded up to 26 weeks	Primary carer; eligibility based on service and hours
Partner's Leave	1 or 2 weeks	Unpaid	1 week after 6 months; 2 weeks after 12 months, averaging 10+ hours/week
Special Leave	10 days	Unpaid	Pregnancy-related medical appointments

Annual Leave

Employees are entitled to 4 weeks of paid annual leave after 12 months of continuous employment. Fixed-term employees engaged for less than 12 months may receive 8% of gross earnings as holiday pay in lieu.

Sick Leave

Employees are entitled to 10 days of paid sick leave per year after 6 months of continuous employment. Unused leave carries over, up to a maximum of 20 days total. Gloroots integrates sick leave tracking directly into payroll.

Maternity, Paternity, and Parental Leave

New Zealand provides up to 26 weeks of government-funded parental leave payments, administered through IRD. Parents may take up to 52 weeks of job-protected leave in total.

Partner's leave is a distinct entitlement: 1 week unpaid for employees with 6 or more months of service averaging 10 or more hours per week, and 2 weeks unpaid for those with 12 or more months of qualifying service. Employees may also take up to 10 days of unpaid leave for pregnancy-related medical appointments.

Public Holidays

New Zealand observes 11 public holidays: New Year's Day (1 Jan), Day After New Year's Day (2 Jan), Waitangi Day (6 Feb), Good Friday, Easter Monday, Anzac Day (25 Apr), King's Birthday (first Monday in June), Matariki (varies, June or July), Labour Day (fourth Monday in October), Christmas Day (25 Dec), and Boxing Day (26 Dec). Employees required to work on a public holiday receive an alternative holiday.

Payroll, Tax and Statutory Contributions in New Zealand

Payroll in New Zealand runs weekly, fortnightly, or monthly. Employers must file PAYE information with IRD on each payday, within 2 working days of payment. Tax payments are due by the 20th of the following month.

KiwiSaver employer contributions rise to 3.5% from 1 April 2026 and will increase to 4% from 1 April 2028. A frequently overlooked cost is the Employer Superannuation Contribution Tax (ESCT), which applies on top of the 3.5% employer contribution. The true retirement cost is higher than the headline rate suggests, and employers who miss ESCT face IRD penalties.

Employees also pay an ACC levy of approximately 1.46% to 1.60% of gross salary, deducted from their pay.

Income Tax Brackets (2026)

Taxable Income (NZD)	Tax Rate
Up to 15,600	10.5%
15,601 to 53,500	17.5%
53,501 to 78,100	30%
78,101 to 180,000	33%
Above 180,000	39%

Employer and Employee Contributions

Contribution	Rate	Paid By
KiwiSaver (employer)	3.5% (from 1 Apr 2026); 4% (from 1 Apr 2028)	Employer
ESCT	Varies by employee income band	Employer
KiwiSaver (employee)	3%, 4%, 6%, 8%, or 10% (employee choice)	Employee
ACC Levy	~1.46% to 1.60% of gross salary	Employee

Work Visas and Permits in New Zealand

New Zealand's primary work visa for skilled foreign workers is the Accredited Employer Work Visa (AEWV). Employers must hold accreditation with Immigration New Zealand before sponsoring a worker.

An EOR holding Accredited Employer status can sponsor workers on the AEWV directly, removing the need for the client company to obtain its own accreditation. This applies equally to companies already managing employment through an employer of record UK arrangement who are expanding into New Zealand. New Zealand also maintains a Green List of in-demand occupations that may be exempt from labor market tests and can create direct pathways to residence under the Skilled Migrant Category.

Key Visa Types

Visa Type	Purpose	Validity
Accredited Employer Work Visa (AEWV)	Skilled employment with an accredited employer	Up to 5 years
Skilled Migrant Category Resident Visa	Permanent residence for skilled workers	Permanent
Working Holiday Visa	Short-term work for eligible nationalities	Up to 23 months (varies by country)

Equity and ESOP Consulting in New Zealand

Equity compensation is increasingly common in New Zealand's ICT, fintech, and medtech sectors, particularly in Auckland and Wellington.

Employee Share Schemes (ESS) in New Zealand are subject to income tax at the time shares vest or are acquired. Employers must report ESS benefits to IRD. The tax treatment differs from options-based schemes in Australia or the United States, which creates complexity for globally mobile employees moving between jurisdictions. Gloroots supports employers in tracking ESS reporting obligations and coordinating with local tax advisors to manage cross-border equity compliance.

Misclassification Risk in New Zealand

Misclassification occurs when a worker engaged as a contractor is legally treated as an employee under the Employment Relations Act, triggering back taxes and penalties.

New Zealand courts apply three tests to determine employment status. Each test examines the substance of the working relationship, not the label in the contract.

• Control test: Whether the engaging party controls how, when, and where the worker performs their duties, indicating an employment relationship.
• Integration test: Whether the worker's role is integral to the business rather than an independent service provided from outside the organisation.
• Economic reality test: Whether the worker is economically dependent on one engaging party, with no genuine ability to build an independent business.
• Tools and equipment: Whether the engaging party supplies the tools, equipment, and resources required to perform the work.

Misclassification fines start at NZD 30,000 under the Employment Relations Act. Directors and managers may face personal liability if they were involved in the breach.

• Back PAYE and KiwiSaver: All unpaid PAYE tax and employer KiwiSaver contributions become immediately recoverable by IRD.
• ERA fines: Penalties of NZD 30,000 or more apply per breach, with additional exposure for repeated or deliberate misclassification.
• Personal liability: Directors and managers involved in the decision to misclassify may be held personally liable for resulting penalties.
• Entitlement claims: Misclassified workers can claim annual leave, sick leave, and public holiday pay backdated to the start of the engagement.

Understanding the full employer of record cost helps businesses weigh compliant employment against the financial exposure of misclassification. For companies hiring across the Asia-Pacific region, reviewing how employer of record Singapore frameworks handle contractor classification provides useful regional context.

An EOR eliminates misclassification risk by structuring all engagements as compliant employment relationships from day one.

Hiring, Onboarding, Termination and Offboarding in New Zealand

Hiring in New Zealand requires a written employment agreement before work begins. The agreement must specify pay, hours, leave entitlements, and termination procedures under the Employment Relations Act.

New Zealand law distinguishes between two types of early-employment periods. Employers with fewer than 20 employees may use a 90-day statutory trial period, which allows termination without specifying a reason. All employers may also use a standard probationary period of three to six months, but a fair process is required before any dismissal during that period.

The trial period must be agreed in writing before the employee's first day. If it is not documented before employment begins, it has no legal effect and the employer loses the right to rely on it.

Onboarding, termination, and offboarding each carry distinct compliance obligations. The sections below set out the required steps for each phase.

Onboarding

• Before day one: Issue the written employment agreement; confirm the employee's IRD number and KiwiSaver enrollment status; set up payroll with PAYE and ACC levy classification; confirm visa and work rights if applicable.
• Day one: Deliver a Health and Safety at Work Act induction; provide workplace policies and a leave entitlement summary; confirm the employee's KiwiSaver opt-in or opt-out decision (the window is two to eight weeks from the start date).
• First week: Complete background checks if the role requires them (healthcare, finance, and childcare roles have specific requirements); introduce the employee to the team; confirm probation or trial period terms in writing.
• Beyond: Schedule a probation review at three months; confirm leave accrual tracking is active; ensure payday filing is submitted within two working days of the first payday.

Termination

Termination in New Zealand requires fair cause and a documented process under the Employment Relations Act. Notice follows the employment agreement or defaults to two to four weeks if unspecified.

Employers with fewer than 20 employees may use the 90-day statutory trial period to terminate without specifying a reason. The trial must be agreed in writing before employment begins, or it carries no legal weight.

Offboarding

• Settlement: Calculate final salary, accrued holiday pay (including 8% in lieu if applicable for fixed-term employees), and any contractual redundancy payment owed under the employment agreement.
• Documents: Issue a certificate of employment confirming the employee's role and tenure; file the final PAYE return with IRD via payday filing within two working days of the final payday.
• Exit: Recover all company property including laptops, access cards, and data storage devices; revoke all system access on the employee's final day of employment.
• Records: Retain all employment records for a minimum of six years as required under New Zealand law.

What's New: Recent Regulatory Changes in New Zealand

From 1 April 2026, New Zealand's KiwiSaver employer contribution rate increased from 3% to 3.5% under IRD regulations. A further increase to 4% is scheduled for 1 April 2028, making this the most significant employer cost change in years.

• KiwiSaver employer rate rises to 3.5% from 1 April 2026: Update payroll systems and employment cost models immediately to reflect the higher contribution obligation.
• Minimum wage increases to NZD 23.95 per hour from 1 April 2026: All employment agreements must reflect the new wage floor before the effective date.
• Income tax brackets updated for 2026: The 10.5% threshold rises to NZD 15,600, affecting PAYE calculations for lower-income employees.
• ESCT applies to the new 3.5% employer KiwiSaver contribution: This creates an additional cost that is frequently missed in budget planning and cost modelling.
• Payday filing remains mandatory within 2 working days of each payday: Late filing attracts IRD penalties and increases audit risk for non-compliant employers.

Employers should review payroll configurations and employment cost models each April when IRD announces annual wage and contribution adjustments.

Costs and Financial Planning for Hiring in New Zealand

Total employer cost in New Zealand extends well beyond base salary. KiwiSaver contributions, ESCT, ACC levies, and leave accruals each add meaningful overhead to every hire.

Three costs are frequently underestimated. First, ESCT applies on top of the 3.5% KiwiSaver employer contribution, increasing the effective cost of that benefit. Second, employer ACC levies vary by industry risk classification and are not fixed. Third, Fringe Benefit Tax (FBT) applies at rates between 11.73% and 63.93% on non-cash benefits such as company vehicles or employer-paid health insurance.

Payroll models built on the old 3% KiwiSaver rate are now non-compliant following the April 2026 increase to 3.5%. Employers should update cost projections before onboarding. For a detailed breakdown of what EOR pricing covers, see employer of record cost.

Cost Element	Direct Entity	Gloroots EOR
KiwiSaver employer contribution	3.5% of gross salary (employer-managed)	Included and updated automatically
ESCT on KiwiSaver	Calculated and filed by employer	Included in Gloroots payroll cost modelling
ACC employer levy	Varies by industry; employer responsible	Applied per industry classification by Gloroots
FBT on non-cash benefits	11.73%–63.93%; employer calculates and files	Gloroots advises on benefits design to manage FBT exposure
Leave accruals	Employer tracks and funds	Managed within Gloroots employment lifecycle

Common Challenges and How Gloroots Solves Them in New Zealand

Foreign employers in New Zealand face practical compliance challenges that go beyond general labor law. Payday filing deadlines, KiwiSaver ESCT, and the 90-day trial period rules are among the most frequently mishandled obligations.

Each of these issues carries real risk: missed filings attract IRD penalties, ESCT errors create payroll shortfalls, and misapplying the 90-day trial period to ineligible employers can void the clause entirely. Gloroots addresses each through built-in process controls, not manual workarounds.

Challenge	How Gloroots Solves It
KiwiSaver ESCT miscalculation	Gloroots includes ESCT in payroll cost modelling from day one
Payday filing deadline missed	Gloroots files with IRD within 2 working days of each payday, automatically
90-day trial period misapplied to large employers	Gloroots structures trial and probation terms based on employer headcount
FBT on non-cash benefits unaccounted	Gloroots advises on benefits package design to manage FBT exposure
AEWV accreditation burden	Gloroots holds accredited employer status, removing the client accreditation requirement

Why Gloroots Is a Strong EOR Partner in New Zealand

Gloroots is best suited for companies hiring one to fifty employees in New Zealand without a local entity. This includes companies in ICT, healthcare, and engineering, where talent shortages make speed of hire a practical constraint.

Gloroots holds its own New Zealand legal entity, manages the April 2026 KiwiSaver rate increase automatically, and handles ESCT and FBT compliance that many EOR providers do not address. These are not optional features; they are baseline requirements for compliant NZ payroll.

Gloroots onboards New Zealand employees in days, without requiring clients to register with IRD or obtain employer accreditation.

The service is well-suited for market-entry hires, M&A carve-out employee transfers, and project-based teams in Auckland, Wellington, or Christchurch.

Before signing with any EOR provider, buyers should confirm whether payroll has been updated for the April 2026 KiwiSaver and minimum wage changes. This is a practical due diligence question. Gloroots applies these changes automatically. EOR for startups and EOR for mid-market companies pages outline how Gloroots structures employment by company stage.

Conclusion

New Zealand's April 2026 KiwiSaver rate increase to 3.5% means employer costs have risen. Payroll models built on the old 3% rate are now non-compliant and must be corrected before the next pay cycle.

Companies evaluating New Zealand hiring should confirm their EOR or payroll provider has applied the April 2026 changes to KiwiSaver, minimum wage, and income tax brackets. This check should happen before onboarding the first employee, not after the first IRD filing.

Frequently Asked Questions About Employer of Record in New Zealand

The questions below cover the most common topics for companies evaluating EOR as a hiring model in New Zealand: legality, cost, timelines, benefits, entity comparison, visa sponsorship, KiwiSaver obligations, and the 90-day trial period.

Is it legal to use an Employer of Record in New Zealand?

Yes, using an EOR is fully legal in New Zealand. The EOR becomes the statutory employer under the Employment Relations Act 2000, issuing compliant employment agreements and managing PAYE, KiwiSaver, and ACC obligations. The client company directs the employee's day-to-day work without needing its own New Zealand legal entity.

How much does an Employer of Record in New Zealand cost?

EOR fees in New Zealand typically range from USD 299 to 599 per employee per month. Total employer cost includes gross salary, KiwiSaver employer contributions (3.5% from April 2026), ESCT on that contribution, and ACC levies by industry. Always confirm whether ESCT is included in the quoted fee. See employer of record cost for a full breakdown.

How long does it take to hire an employee in New Zealand through an EOR?

Through an EOR, a New Zealand employee can typically be onboarded within 3 to 7 business days, provided the candidate has the right to work in New Zealand and all documentation is ready. Direct entity setup requires a minimum of 2 to 4 weeks, plus additional time for IRD registration and payroll configuration.

What employee benefits are mandatory in New Zealand?

Mandatory benefits in New Zealand include 4 weeks of paid annual leave (after 12 months), 10 days of paid sick leave (after 6 months), 11 public holidays, and KiwiSaver employer contributions at 3.5% from April 2026. ACC levy coverage, bereavement leave, partner's leave (1 to 2 weeks unpaid), and 10 days of unpaid pregnancy-related leave are also statutory entitlements.

What is the difference between an EOR and setting up an entity in New Zealand?

Setting up a New Zealand entity requires a local director (New Zealand or Australian resident), IRD registration, and GST registration if turnover exceeds NZD 60,000. The process takes 2 to 4 weeks before a single hire can be made. An EOR uses its existing entity to employ workers in days, with no incorporation costs or ongoing corporate governance obligations. Entity setup suits large, permanent operations.

Can an EOR sponsor work visas in New Zealand?

Yes, provided the EOR holds Accredited Employer status with Immigration New Zealand. Accreditation is required to sponsor workers on the Accredited Employer Work Visa (AEWV), the primary visa for skilled foreign workers. Using an accredited EOR means your company does not need its own accreditation, a process that can take several weeks and requires meeting specific INZ criteria.

What is the 90-day trial period in New Zealand and does it apply to all employers?

The 90-day statutory trial period allows employers to terminate a new employee within the first 90 days without specifying a reason. It applies only to employers with fewer than 20 employees and must be agreed in writing before employment begins. Larger employers must use a standard probationary period (typically 3 to 6 months), which requires fair cause and process for any dismissal.

Do KiwiSaver contributions apply to all employees in New Zealand?

KiwiSaver applies to eligible employees aged 18 to 65 who are New Zealand citizens or permanent residents. New employees are automatically enrolled and have a 2 to 8 week window to opt out. From 1 April 2026, employers must contribute a minimum of 3.5% of gross salary, rising to 4% from 1 April 2028. Employers also pay Employer Superannuation Contribution Tax (ESCT) on top of that contribution.