How Global Uncertainty Is Reshaping Expansion into Australia and New Zealand
Global uncertainty is not stopping international expansion, but it is changing how businesses enter new markets. Economic volatility, workforce shortages, evolving immigration policies, shifting trade relationships, and ongoing supply chain disruption have contributed to a more cautious business environment. While organisations continue to pursue growth opportunities, many are taking a more measured approach to where they invest, how they hire, and how they establish operations in new markets. For businesses looking beyond their home market, Australia and New Zealand continue to stand out as attractive destinations. Both countries offer stable economies, established legal systems, skilled workforces, and strong long-term growth opportunities. However, as many businesses discover, successful expansion requires more than identifying commercial potential. The practical realities of employing people, managing payroll, navigating visa requirements, and maintaining employment compliance can quickly become some of the most complex aspects of international growth. Key Takeaways • Global uncertainty is causing businesses to take a more measured approach to international expansion. • Australia and New Zealand remain attractive expansion markets due to their stability, skilled workforces, and established legal systems. • Workforce mobility, visa sponsorship, and access to talent are becoming increasingly important strategic considerations. • Businesses are placing greater emphasis on employment compliance, payroll management, and local expertise. • Flexible expansion models such as Employer of Record (EOR) arrangements are helping organisations reduce complexity while entering new markets. Why Australia and New Zealand Remain Attractive Expansion Markets Despite broader economic and geopolitical uncertainty, Australia and New Zealand continue to attract international businesses across a wide range of industries. Both countries offer highly skilled workforces, established legal systems, and strong demand across sectors including technology, healthcare, engineering, construction, mining, and professional services. They also provide businesses with access to mature economies, transparent regulatory environments, and strategic opportunities throughout the Asia-Pacific region. For many organisations, this combination of stability and opportunity makes Australia and New Zealand attractive destinations for market entry, employee relocation, and long-term business expansion. However, stable markets do not necessarily mean simple markets. As businesses expand internationally, they are often required to navigate employment frameworks, payroll obligations, tax requirements, and workforce regulations that differ significantly from those in their home country. How Is Global Uncertainty Changing International Expansion Decisions? While international expansion remains a priority for many organisations, global uncertainty is influencing how those decisions are made. Businesses are increasingly focused on balancing growth opportunities with operational risk. Rather than committing immediately to large-scale infrastructure investments or entity establishment, many organisations are taking a more phased approach to entering new markets. This shift is being driven by a combination of factors, including economic uncertainty, rising operational costs, changing workforce dynamics, and the need to remain agile as market conditions evolve. As a result, businesses are placing greater emphasis on flexibility, scalability, and understanding local market requirements before making long-term commitments. How Is Global Uncertainty Affecting Workforce Mobility and Access to Talent? Access to talent remains one of the most significant drivers of international expansion. However, ongoing skills shortages across many industries, combined with changing workforce expectations and increased competition for talent, are making workforce planning more complex. For many organisations, workforce mobility has become a strategic consideration rather than simply a recruitment activity. Businesses are increasingly looking beyond their domestic markets to access specialist skills, relocate key employees, and build teams that support long-term growth objectives. This trend is particularly relevant in Australia and New Zealand, where skilled migration continues to play an important role across sectors experiencing talent shortages. As businesses navigate uncertainty, the ability to access and mobilise talent efficiently is becoming an increasingly important factor in expansion planning. Why Is Visa Planning Becoming a Strategic Expansion Consideration? Historically, visa planning was often viewed as a process that followed expansion decisions. Today, it is becoming an increasingly important part of expansion strategy itself. Businesses looking to relocate employees or hire overseas talent into Australia and New Zealand must consider visa eligibility requirements, sponsorship obligations, processing timeframes, and ongoing compliance responsibilities. These factors can directly influence hiring plans, project timelines, and operational readiness. As immigration frameworks continue to evolve, organisations are recognising the importance of understanding visa pathways earlier in the expansion process. As Fran Davies, Founder and Director of ANZPEO, explains: “We’re seeing businesses take a much more measured approach to expansion than they were a few years ago. The focus isn’t necessarily on slowing growth, but on ensuring the right employment structures, workforce planning, and local expertise are in place before entering a new market.” What Operational Risks Do Businesses Need to Consider When Expanding? Periods of uncertainty often place greater pressure on businesses to minimise risk and avoid costly mistakes. For organisations expanding into Australia and New Zealand, this means paying closer attention to the employment and compliance obligations that sit behind successful market entry. For overseas businesses unfamiliar with these systems, it is often the ongoing legal employment obligations, payroll requirements, workforce administration responsibilities, and compliance requirements that become underestimated. Employment contracts, payroll compliance, visa sponsorship obligations, onboarding processes, superannuation, PAYG, PAYE, KiwiSaver, and ongoing workforce administration all require local knowledge and ongoing management. For international businesses without an established presence in a market, this can create significant pressure internally across HR, payroll, finance, and operational teams, particularly when local requirements are being managed remotely. Understanding these obligations early can help businesses reduce risk, maintain compliance, and establish stronger foundations for growth. Why Are More Businesses Turning to Flexible Expansion Models? As global uncertainty continues to influence expansion strategies, businesses are increasingly looking for ways to maintain flexibility while entering new markets. This has led many organisations to explore expansion models that allow them to hire employees, test new markets, and establish a local presence without immediately committing to entity establishment or large operational structures. For businesses expanding into Australia and New Zealand, this approach can provide greater agility while reducing some of the administrative complexity associated with international growth. One model receiving increased attention is the
New Zealand Skilled Migrant Category Changes: What Employers Need to Know
Australia PEO and New Zealand PEO have officially launched as ANZPEO, bringing together our Employer of Record, payroll, HR and visa expertise under one regional brand across Australia and New Zealand.
Introducing ANZPEO: One Name, One Website, One Clearer Identity Across Australia and New Zealand
Australia PEO and New Zealand PEO have officially launched as ANZPEO, bringing together our Employer of Record, payroll, HR and visa expertise under one regional brand across Australia and New Zealand.
Expanding into Australia and New Zealand: Where businesses most often underestimate what’s involved
Expanding into Australia or New Zealand can take several different paths. Some businesses choose to set up a local entity. Others explore remote hiring models. Increasingly, many look to Employer of Record (EOR) or Professional Employer Organisation (PEO) solutions to enter the market more quickly and with less administrative burden. At the centre of each approach is the same challenge: employment. Businesses know there are laws, obligations and compliance requirements involved in hiring overseas, and that processes need to be followed. What is less clear is how those laws actually work in practice, and how they apply to real employment situations day to day. This is where businesses tend to underestimate what is involved. Working with a locally based, on-the-ground EOR provider often brings these realities into focus early. It helps uncover the practical considerations that are not always obvious at the outset, particularly across two distinct employment markets like Australia and New Zealand. Understanding the rules is only the starting point Employment frameworks across Australia and New Zealand are well documented. It is relatively easy to find information on minimum standards, contracts and employer obligations. The complexity starts earlier than many expect, during the initial setup phase. How employees are engaged, how contracts are structured, how payroll is established and how obligations are defined from the beginning all have a direct impact on compliance. Decisions made at this stage set the foundation for everything that follows. Once employees are in place, the focus shifts to how those rules are applied in real situations. Day-to-day employment decisions rely on process, timing, documentation and an understanding of how regulators and mediators interpret actions in each market. As Fran Davies explains: “Most businesses we speak to understand there are compliance requirements. Where they often need support is in how those requirements are applied in real situations, particularly when decisions need to be made quickly.” Where underestimation tends to show up In practice, the gaps appear in common business scenarios rather than unusual ones. Managing employee performance within local frameworks If employee performance issues arise they need to be managed carefully. In Australia and New Zealand, managing those situations requires a structured and well documented approach. Steps need to be followed in the right order, with clear communication and fair process. In New Zealand, expectations around fairness and employee protection can be particularly strong, which increases the importance of handling these situations carefully. Without local guidance, businesses can move too quickly or miss critical steps, which can lead to disputes. Handling redundancy and restructuring correctly Redundancy processes are another area where detail matters. Employers need to consider consultation requirements, timing, documentation and how decisions are communicated. These elements are closely linked to employment compliance and employer responsibility. Even when a business understands that redundancy must be handled carefully, the practical execution can still create risk if not managed correctly. Having access to locally based expertise helps ensure these processes are managed in line with each market’s expectations, with the right steps taken at the right time. Meeting payroll expectations and supporting employees locally Payroll is often viewed as an operational task, but it carries significant compliance responsibility. This includes managing: Employee entitlements and leave Superannuation in Australia and KiwiSaver in New Zealand Local variations such as salary sacrifice or novated arrangements Ongoing payroll accuracy across different employment conditions Employees also expect timely, clear responses when they have questions about their pay or benefits. Providing that level of support requires local knowledge, responsive on-the-ground support, and the correct processes in place. Treating Australia and New Zealand as one market Australia and New Zealand are often approached as a combined expansion opportunity. In reality, each market has its own employment framework, expectations and regulatory approach. Australia operates within a more structured system, while New Zealand can involve more interpretation in areas such as dispute resolution. Managing both markets successfully requires an understanding of how these differences affect day-to-day employment decisions. As Fran notes: “Each market has its own expectations. Having a clear understanding of how employment works in practice across both countries makes a significant difference as a business grows.” What this means for expanding businesses The impact of underestimating these areas often traces back to decisions made during the initial setup phase. When employment structures, contracts or payroll are not set up correctly from the outset, issues rarely stay contained. As the business grows or more complex situations arise, those early decisions often need to be revisited. This can lead to rework, increased costs and duplicated effort. Internal teams may also find themselves managing unfamiliar processes while trying to maintain day to day operations. Over time, this reduces efficiency and makes it harder to manage employee matters with confidence across Australia and New Zealand. Building the right foundation from the start Addressing these challenges comes down to having the right structure in place early. For many businesses, this is where an Employer of Record (EOR) or Professional Employer Organisation (PEO) model plays an important role. It provides a framework to: Engage employees without establishing a local entity Manage employment compliance and obligations locally Ensure payroll accuracy and correct entitlements Support visa sponsorship and workforce mobility Provide consistent HR and workforce support It also creates a clear point of accountability, which simplifies decision making and allows businesses to focus on growth rather than navigating unfamiliar employment requirements. Final thought Expanding into Australia and New Zealand brings strong opportunities for growth, with several pathways available depending on how a business chooses to enter the market. Whichever approach is taken, the businesses that navigate it well focus on getting employment set up correctly from the beginning, with a clear understanding of how local requirements apply in practice across both markets. For those choosing an
Top recruitment tips during a labour shortage in New Zealand
Overcome New Zealand’s labour shortage It’s no secret that there is a shortage of good workers in New Zealand right now. Unemployment is hitting near record lows, with Stats NZ recording a drop to 3.3% in June. While high employment is good for the nation for many reasons, it means finding skilled and productive staff can be difficult. So what do you do to ensure that your workplace is both a magnet for high-quality workers and a haven for your current people? Let’s start with attracting employees. Beat labour shortages in New Zealand You want potential employees to see your company as a desirable workplace so there are plenty of responses to your job advertisements. Here are some ways you can do that: Marketing Many businesses now apply a marketing strategy to attract talent. An easy place to start is with a careers page, which will highlight the many reasons to work for your organisation and give people an easy way to send through their details. Your careers page can have videos promoting your workplace and even blog posts about what it’s like to work there. Don’t be afraid to add some personality so your company stands out. List the benefits people receive when working with you such as rostered days off, subsidised healthcare or regular team gatherings. Pay competitive salaries At the end of the day, money talks. If you can offer above average wages you will be able to attract more applicants and have more flexibility around who you choose. Offer perks Other perks in addition to a competitive salary will put your business ahead of the competition. – Working from Home Allowance: Over the past few years it has become more commonplace for some sectors in the workforce to work remotely from home. You may consider paying your workers a Working from Home Allowance to cover costs such as electricity and internet cost. – Food: There’s nothing better than a free lunch. Even if it’s only once a month, a free lunch can be an excellent motivator and a way to develop camaraderie across your team. – Health insurance: In the USA, many companies include health insurance as part of their package but it is not the same in New Zealand. However, offering a monthly health insurance rebate of $100-$200 can be an appealing perk. – Flexible hours: Staggered start times can make a big difference to people’s schedules and stress levels. It’s easy to set a window for start times, e.g. between 7:30 am and 10 am, so long as people work their standard 7.5-8 hours per day. Retention Of course, to reduce the need to hire, you need a strategy to hold onto your existing team. What’s most important is creating a place people enjoy showing up to, whether virtually or in person. Workplace culture Culture exists at every workplace and can be tricky to define but when you get it right you have fast-moving teams who get more done with less effort. One way to guide culture is to have clear values and to share them as part of the hiring and onboarding process. When challenging behaviours arise, you can refer people back to the company values and have constructive conversations. People work better together when they have a sense of kinship and belonging. Hosting regular catch ups and events is a great way to foster a stronger team. If you have people working remotely, consider some online games and activities. Be free with your feedback Staff work better when they know where they stand. Frequent, constructive feedback can help your employees improve while also letting them know they are noticed and valued. Scheduling regular catch-ups also allows them to raise any concerns, frustrations or issues. Build your social and environmental conscience Studies have found employees and in particular the younger generation will hesitate to accept a job if their employee doesn’t have a strong Corporate Social Responsibility (CSR) policy, and 83% would be more loyal to a company that helps them contribute to social and environmental issues. CSR means actively contributing to the community and taking steps to minimise waste and build a more sustainable future. Some studies have even found the youngest workers prioritise purpose over salary. Focusing on improving your business in this area can help to attract ‘bright young things’ and build their loyalty. Pay attention to what is being called the ‘Great Rethink’. According to Harvard Business Review, this has people asking, “Do we really like our employers’ culture? Do we feel that we’re fairly treated and have the advancement opportunities we want? Most profoundly, does our work feel as meaningful as we’d like it to?” If the people working for your brand can answer yes to these questions and if you can prove to new employees that they will feel great about working for you, you stand to gain from a shift in workplace mindsets. Want more information about how to quickly fill staff vacancies in New Zealand? Talk to ANZPEO.
Umbrella companies vs. PEOs in New Zealand
When you’re establishing a business and hiring a team in New Zealand, there are a few options when it comes to recruiting, onboarding and paying your workers. It can be confusing to know which services are right for your business. Some employers mistakenly think they need to use an umbrella company. Here is some info about what an umbrella company is and why it’s not a good long term solution when you are building a team of employees in New Zealand. What is an umbrella company? An umbrella company is used to support contract workers only. It is a third party company that acts as a go-between for a business and the contractors it employs. Here’s an example: ‘Sam’ is a contractor who is offered a short term contract with ‘A Large Company’. ‘UmbrellaCo’ is the umbrella company that acts on behalf of A Large Company and Sam. Once Sam has signed a contract and started working, UmbrellaCo invoices A Large Company to collect Sam’s pay. It then pays Sam after taking out the necessary tax and superannuation payments. A Large Company pays a fee to UmbrellaCo for its services. Many contractors and freelancers use umbrella companies because it helps them to receive a regular income without having to worry about putting aside the right amount of money for tax and superannuation. They’ll have a record of the hours they work and receive a tax certificate at the end of the financial year so they are similar to what’s known as a PAYG employee in New Zealand. If you only need contractors in New Zealand for short term roles, you may decide to use an umbrella company. However, its services are very limited. You won’t have the option to hire full-time or part-time employees through an umbrella company. What’s more, hiring contractors can be complicated in New Zealand. You don’t want to inadvertently break the rules because you aren’t clear on the difference between a contractor and a permanent employee. What is a PEO in New Zealand? A PEO is your company’s representative when it comes to hiring and paying your team. In addition to ensuring workers are paid and their tax is withheld, your PEO can help with recruitment, insurance and human resources. When you hire people in New Zealand with the help of a local PEO, you will have someone close by who can interact with people by performing HR as well as payroll duties such as paying tax and other requirements. A PEO in New Zealand doesn’t set tasks or KPIs for your workers. It isn’t involved with their daily activities but it acts as a stand-in ‘entity’, saving your company from the cost of establishing an entity itself. Ready to hire in New Zealand? PEOs make more sense An umbrella company employs freelancers or contractors who work on temporary assignments or contracts. For the duration of their time with the business, the worker becomes like an employee of the umbrella company. Communication is often automated and it can sometimes be difficult for workers to get hold of people. As mentioned, an umbrella company has a limited offering and only serves to pay workers. It is also likely to be connected to a specific recruitment agency, meaning you have less flexibility when it comes to deciding who to use for hiring purposes. A PEO and an umbrella company will both deduct PAYE tax from pay and issue payslips. Both will also help your company to pay your workers correctly and not mistakenly miscategorise a contractor as a permanent employee and vice versa. The added advantage of a country-specific PEO is that it provides a suitable ‘package’ solution for overseas companies that want to build a team in New Zealand. It can assume the responsibility of an employer, rather than simply handling wages, which gives your team a more well-rounded experience and helps to improve engagement. Your PEO also acts as your entity in New Zealand, saving you money and allowing you to rapidly build a talented team. Want to know more about hiring in New Zealand? Talk to ANZPEO today.
Hiring in New Zealand Local PEO vs International PEO
When your company is looking to expand into the New Zealand market, if you want to be able to hire people without an entity, you need to work with a PEO (Professional Employer Organisation). This allows you to establish an international presence without the time and expense of setting up a company. One of the decisions you need to make is whether you choose an international PEO or work with an organisation that is New Zealand specific. Here is some information to help you make a decision: Your PEO options explained If you have never worked with a PEO before, the terminology can take some time to be familiar with. – An international PEO is based in one country but operates in a number of different regions. When you use an international PEO, it won’t have an established entity in the country where you wish to hire people but will instead rely on a local PEO itself. – A local or domestic PEO is based in the country where you wish to hire employees. It acts as the Employer of Record and has the advantage of an on-the-ground presence. What does a ANZPEO do? Whether you are working with an international PEO or a PEO that is specific to New Zealand, the provider will help you to decide how much to pay them, find and hire staff, figure out how much to pay them and pay them accordingly. It will support you with insurance, legal & training requirements, human resources and payroll services, while your management team takes responsibility for assigning daily tasks, setting KPIs and inducting the employee into your company culture. Your PEO takes on the legal responsibility for employing people in New Zealand, acting as an on-the-ground extension of your business. Why use an international PEO? There is really only one advantage to using an international PEO, and this is if your business is rapidly expanding into a number of new markets at once. It may make sense to choose an international PEO because it has a presence in every country where you wish to operate. Why use a ANZPEO? For any company that wants to build a team in New Zealand, using a PEO that is specific to this country makes sense. The main advantage is working with a smaller company that has an in-depth understanding of the local market. Your ANZPEO will have connections with insurance companies, training and payroll providers, so they can get you the best service and the best price. When you work with an international PEO, you will often find you are dealing with a larger company. As a result, you become ‘just a number’ and it can be difficult to access the personal service your business needs. In addition, an international PEO often contracts work to a local PEO anyway. This means that if an employee has a question, they will direct it to their manager, who will direct it to the international PEO, who will direct it to the local PEO. And then the answer has to make its way back to the right person! It’s easy to see why this ends up wasting a great deal of time and causing confusion. Further benefits of using a PEO specific to New Zealand are: – You have an operator in a time zone that matches your employees – Your local PEO understands the changing requirements in New Zealand for employment and compensation – Your local PEO is smaller and more likely to be agile enough to meet your evolving needs – Choosing a New Zealand-specific PEO will help you to fast-track your presence in this market without the need to establish an entity Many New Zealanders prefer to take a job when they have the knowledge that there is a point of contact who is based close by and understands the expectations of employees in New Zealand. If they have the choice between being hired by an international PEO and one that is specific to New Zealand, they will probably prefer to keep things close to home. Want to know more about the benefits of using a New Zealand-specific PEO? Contact ANZPEO today.
New Zealand employment law and vaccinations in the workplace
What is New Zealand’s workplace immunisation policy? COVID-19 made its way around the world from 2019 to 2022, causing workplace policies and requirements to change rapidly and drastically. In order to protect people from becoming sick in high numbers, vaccines were recommended and in some cases mandated. This allowed people to get back to work with diminished risk of falling ill. While things have changed a lot this year, any business that wants to hire staff in New Zealand needs to have an idea of the latest immunisation policies or work with a PEO that understands the requirements. Here is some information about vaccines for businesses planning to hire in New Zealand: What are the laws around vaccination in the workplace in New Zealand? As of mid-2022, 2021, 80.7% of eligible New Zealanders have been fully vaccinated against COVID. That means that if you are looking to hire in New Zealand, you have high odds of applicants already being fully vaccinated. At the time of writing, there is no blanket government requirement stating that anyone must be fully vaccinated in order to hold a job. The decision is down to the discretion of the individual employers, with the exception of certain industries. Current Government vaccination mandates are in force for: – Health and disability sector workers (which includes aged care workers) – Prison staff – Border and MIQ workers Government vaccination mandates are no longer in force for: – New Zealand Police workers (sworn members, recruits and authorised officers) unless working in an environment where a mandate is required – New Zealand Defense Force workers (Armed Forces and civilian staff) unless working in an environment where a mandate is required – Early childhood and schooling education workers – Workers at food and drink services, events, close proximity services and indoor exercise facilities like gyms – Work at tertiary education premises (which only applied at the Red level of the COVID-19 Protection Framework). As shared by Employment New Zealand, “If a business or workplace isn’t covered by a government vaccination mandate, an employer can determine what controls can be supported by a work health and safety risk assessment or in relation to third party access requirements. This may include requiring work be done only by vaccinated workers.” In other words, you may decide to implement policies of your own. The NZ Government recommends that you engage with workers and their representatives in good faith when it comes to the development, implementation and review of vaccination requirements. Can you force an employee to be vaccinated? Outside of certain professions, no. COVID infection rates are constantly changing and, for now at least, it is generally accepted that the risk to public health is far less than it was, even a year ago. If you believe a vaccination policy is still necessary when you hire people in New Zealand, you should complete a work health and safety risk assessment, and take into account updated public health information when doing so. This will help you figure out what controls are necessary and appropriate in your workplace. You may decide being fully vaccinated is necessary if, for example, people are performing work indoors in close proximity to others for long periods, or the people who may potentially be exposed to COVID are at high risk of serious health consequences. There may also be a scenario where workers are entering environments as part of their work, which requires them to be vaccinated. In this case, you will have to form a policy around this. As shared on the Employment New Zealand website, “Employers, employees and their representatives should communicate early and openly about workplace vaccination requirements. The duty of good faith in employment relationships applies to employees. Consultation requirements under the Health and Safety at Work Act also apply to conversations with all workers, not just employees.” It is very unlikely that your business will have the power to stand down an employee who is not vaccinated if they work in an industry where vaccines are not mandated. However, it depends Why you need a workplace immunisation policy when you’re building your team If you have the luxury of building a new team, you can avoid many of the complications around vaccinations. If you believe there is a valid reason to require staff to be vaccinated and include a workplace immunisation policy right from the beginning, your new employees will know where your business stands from day one. Want to know more about building a team in New Zealand and implementing a workplace immunisation policy that is compliant with local legislation? Contact ANZPEO today.
How to pay staff in New Zealand without establishing an entity
How to hire workers in New Zealand and pay them without establishing an entity Expanding your business to include representatives on the ground in New Zealand can be very exciting. However, if you’re like most businesses in today’s world, you need to onboard people and have them working productively sooner rather than later. If you’re wondering how to recruit and pay new team members in New Zealand, the good news is that you can do so without the need to establish a legal entity. Why set up an entity? Having a legal entity in a country where you intend to hire and pay workers can make sense if you’re a large business and want total control. The strategy does give you longevity in the market but the time and money required to do this may not be worth the investment, particularly if you’re just getting started. You could end up committing considerable funds and resources, only to change directions within a few years. What’s more, there are a number of steps to set up an entity in New Zealand, including reserving your company’s name, registering each director and shareholder, applying for what’s known as an IRD number, registering as an employer for tax purposes and registering for GST (goods and services tax). It makes the most sense to start operating in a new market with a dedicated partner that will act as your entity in New Zealand. If things go well, you can progress to establishing an entity without the time pressure. How to pay staff in New Zealand without an entity If you need people on the ground in New Zealand sooner rather than later, you can recruit workers and start paying them without the need to establish an entity. One option for businesses of any size is to use what’s known as a PEO (Professional Employer Organisation). This entity is already established and has the purpose of helping overseas businesses to hire employees, create contracts, comply with local regulations and pay workers. When you use a PEO, this company is the employer of record. The benefits of this approach include: – Relatively fast hiring process, with ANZPEO staff ‘on the ground’ in New Zealand – Lower costs to start operating in New Zealand – End to end support for the employee onboarding process (it makes a difference to work with someone who knows the culture) – Local HR representative who understands New Zealand’s specific workplace laws and pay requirements – Payroll service Your PEO will work alongside your HR, recruitment and financial teams to create contracts, hire workers in New Zealand and ensure they are paid in accordance with the country’s laws. This includes paying them correctly based on whether they are full-time employees, ‘starting out’ workers or contractors. Why use a PEO to hire workers in New Zealand? The cost of establishing an entity in a new country can be hundreds of thousands of dollars, and the process can take several months. As well as establishing the entity, you will need to find someone to help you with the recruitment process and upskill a member of your finance team so they know how to pay people the right way in New Zealand. When you use a PEO, you have the benefit of an Employer of Record (EOR) and a locally based point of contact. Once you have partnered with this type of business, you can start recruiting immediately. What’s more, your PEO will assume full legal liability for your employees and handle all of the back-end administration, leaving you to focus on supporting your employees to achieve their KPIs. You will pay a monthly fee based on the services you receive and be able to wrap up your New Zealand presence with minimal fuss. Hire workers in New Zealand, starting now New Zealand’s healthy economy and key position in the Oceania market makes it the ideal place to do business in 2022 and beyond. If you want to install a representative or an entire team here, it makes sense to work with an established ANZPEO. This will allow you to find workers and start paying them sooner rather than later. Side-step the cost, legal issues and lengthy wait that comes with establishing an entity. Reach out to ANZPEO for an end-to-end service to will help you build your Aotearoa (that means New Zealand) team.
Annual leave and other employment laws in New Zealand vs the UK
Rules relating to employment and annual leave in New Zealand. Employment laws are different for each country. In New Zealand, employees have specific rights when it comes to things like annual leave, minimum pay and dismissal. Take a look at how some of New Zealand’s workplace laws compare to the UK. Annual leave in New Zealand According to Employment New Zealand, all employees become entitled to four weeks’ annual holidays (annual leave) after 12 months of continuous employment in New Zealand. This means that if you employ someone on a full or part-time basis, you need to keep paying them when they have time off. In New Zealand, employees are entitled to four weeks of paid annual leave per year, based on the number of hours they work. As shared online, “For employees who work the same hours on the same days each week, the annual holiday entitlement is simple to work out. Every 12 months (on their anniversary for annual holidays entitlement), the employee gets four of their working weeks of paid annual holidays. For example, the four-week entitlement for an employee who works 3 x 8 hour days per week will be equivalent to 12 paid days (3×4=12), assuming their work pattern doesn’t change.” Employees who work so intermittently or irregularly that it is too difficult for the employer to provide them with four weeks’ annual holidays (and employees on fixed-term agreements for less than 12 months) may agree to be paid annual holiday pay with their pay. Here is are some more details about pay and annual leave in New Zealand to be aware of if you’re looking to employ someone in this country: – If an employee works on a public holiday, they are entitled to take a day off in lieu. There are 11 public holidays in the New Zealand calendar year. – When entering into an employment agreement, an employer must let the employee know about their entitlements under the Holidays Act 2003 – 10 paid days of sick leave per year are available to employees so they can care for themselves or their dependents. – Eligible employees can take paid bereavement leave if someone close to them dies, or for a miscarriage or stillbirth. – Policies apply to leave when it comes to a situation involving family violence. – Other leave types include garden leave, long service leave, voting leave, jury service, defense forces leave, and leave options for workplace stress or following a natural disaster. Finally, employees must be paid the right amount at the right time for holidays and leave. Annual holidays and worked public holidays are paid differently from other types of leave and holidays. You’ll find information about calculating holiday pay here, or reach out to your ANZPEO to understand how it all works. Minimum wage in New Zealand As well as being aware of annual leave in New Zealand, it’s helpful to know what minimum wage is. While it does change from year to year, at the time of writing, the minimum wage for adults in New Zealand is $21.20NZD per hour, or $848NZD for a 40 hour work week. This applies from the age of 16, however there is also a starting out/training wage of $16.96 per hour, which applies to: – 16- and 17-year-old employees who haven’t done six months of continuous employment service with their current employer. After six months with one employer, they are not starting-out workers and must be paid the adult minimum wage – 18 and 19-year-old employees who have been paid one or more social security benefits for six months or more, and who haven’t completed six months’ continuous employment with an employer since they started being paid a benefit. Note that The Minimum Wage Act 1983 doesn’t apply to apprentices covered under any other Act. These rates may seem high when compared to the National Living Wage of £8.91 per hour in the UK, but two New Zealand dollars only works out to around one GBP. The cost of living in New Zealand also reflects the minimum wage. Dismissal laws in New Zealand Employing people in New Zealand can be very exciting but you also need to know how to let them go if you need to. New Zealand is similar to the UK, where an employer must show they have a valid reason for terminating someone’s employment and that they have acted reasonably under the circumstances. As shared by Employment New Zealand, the reasons why an employer may want to dismiss an employee include: – serious misconduct – repeated misconduct – performance issues – the end of a trial period – redundancy – incompatibility – incapacity If you dismiss an employee who was not in a trial period, they have the right to ask you for a written statement of the reasons for dismissal. This request can be made up to 60 days after they find out about the dismissal. Your business must provide the written statement within 14 days of such a request. If you fail to provide this written statement, the employee may consequently be able to raise a grievance after the required 90-day limitation period. In terms of giving notice, generally speaking, an employer must give the appropriate amount of notice specified in the employment agreement, unless they are dismissing an employee for serious misconduct. In New Zealand, a dismissal must be for a good reason and be carried out fairly, otherwise the employee may have a personal grievance claim. If your workplace does not have clear guidance about the way an employee conducts themselves, the test asks: ‘what could a fair and reasonable employer have done in the circumstances?’ Understanding employment law in New Zealand When you employ people who live in New Zealand, it helps to have the support of a professional who knows current employment law inside and out and can ensure you are acting in accordance with current legislation. Contact ANZPEO to find