Visit our NZ site
Talk to an expert

Tag: New Zealand PEO

Hiring in New Zealand Local PEO vs International PEO

New Zealand 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

New Zealand workplace immunisation policy

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

hire workers in New Zealand

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

annual leave in New Zealand

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