New Zealand Working Holiday Employment Rights [2023]

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The Employment Agreement

First things first, you must sign a written agreement or contract with your employer before starting work. That way, you know what you are getting yourself in for and reduce the risk of misunderstandings. A number of minimum conditions will be outlined in the agreement, but even if they are not outlined, some conditions must still be met. These conditions are discussed in this article and in-depth on the Employment New Zealand website, which is run by the New Zealand Government.

Employers must keep a copy of the agreement to which you are entitled to get copies on request.

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Employment Trial Periods

Employers in New Zealand can voluntarily choose to give employees a trial period of up to 90 days, which must be agreed in writing in the Employment Agreement (see above). Note that about half of the employers in New Zealand use trial periods.

A trial period generally means that if you are dismissed before the end of a trial period, you cannot raise a personal grievance (official complaint) on the grounds that you think the dismissal was unjustified.

You can, however, raise personal grievances on other grounds, such as discrimination, harassment or unjustified action by the employer. All of these are illegal in New Zealand, as part of The Human Rights Act 1993.

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Minimum Wage in New Zealand

There is a legal minimum wage in New Zealand, which is relatively high to coincide with the high cost of living. The minimum wage is reviewed every year by the end of  April, so keep up to date on the current minimum wage on the Employment New Zealand website.

Being “Paid by Piece”

This also applies to “piece rates” which are the money paid to an employee per fruit picked or garments produced, for example. Even if you are paid by the piece, you should still not get paid less than the minimum wage.

Learn more about piece rates in the context of fruit picking in our guide to the Apple Picking Season in New Zealand.

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Wage Deductions

When you are proposed a wage in New Zealand, keep in mind that the wage is usually before deductions, such as income tax. The tax deduction is known as PAYE (Pay As You Earn). How much you earn determines how much is deducted, which is further explained in our guide, New Zealand Work Tax System: Work and Pay Your Taxes!

Fill out the Tax Code Declaration (IR330) form given to you by your employer to make sure the correct tax deductions are made. You will need an IRD Number for this (find out how to get an IRD Number in our guide, What is an IRD Number?)

A small portion of this deduction is the ACC (Accident Compensation Corporation) levy, which is an insurance system covering the costs if you are injured and off work for an extended period. You can learn more about what healthcare you are entitled to in New Zealand in A Traveller’s Guide to Healthcare in New Zealand.

The PAYE tax is required by law so the employer does not need your consent for these deductions, however, your written consent is needed for any other deductions made to your wage, such as for accommodation or food, for example.

Working for Accommodation, Food and/or a Wage in New Zealand

While receiving a wage in exchange for labour is pretty standard in New Zealand. There are other payment methods such as working for accommodation and food, for example. Follow our guides to your rights in the following job types for more information:

• Working for Accommodation in New Zealand: What Are Your Rights?
• Working for Accommodation and Food in New Zealand: What Are Your Rights?
• Working for Accommodation and Pay in New Zealand: What Are Your Rights?

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Rest and Meal Breaks at Work

Employees are entitled to rest and meal breaks on which they can rest and take care of personal matters. The length of these breaks has to be appropriate for the amount of time worked that day. There are no specific rules about the length and time of breaks.

The common practice in New Zealand is a 30-minute unpaid meal break and 10-15-minute paid rest breaks after every four hours worked, for example. This varies between industries so breaks are appropriate for both employer and employee. The guidelines on breaks should be outlined in your Employment Agreement.

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Holidays: Getting Paid When Taking Time Off Work

One of the conditions on the Working Holiday Visa is: “You must not work for a period exceeding 12 months.” So working holidaymakers are not likely to work for a whole year in New Zealand with the same employer. There’s too much travelling to do! However, during the short periods that you’re likely to work, whether it’s full-time or part-time work, you will get holiday pay of 8% of your gross earnings at the end of your employment, minus any holiday pay you received during your employment.

A similar deal is given to those on a fixed-term agreement (i.e. seasonal work, such as working for just the winter season, or picking season, for example) and for irregular and intermittent work, where it may be agreed to add 8% holiday pay to the gross weekly earnings.

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Public Holidays

You are entitled to the relevant or average daily pay on a public holiday if you would usually be working on that day. Some jobs will require you to work on a public holiday, in which case you should be paid at least time-and-a-half (1.5 times your hourly rate) for the time worked that day.

See what the public holidays are in our guide to Public Holidays in New Zealand.

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Sick Leave in New Zealand

Five days of sick pay is entitled only after six months of working for one employer. You will get paid the relevant or average daily pay for sick leave.

Employers have the right to request proof of the illness, such as a medical certificate. If this is asked for within the first three days of the sick leave, the employer is responsible for any costs the employee might incur to gain this proof. Employers cannot insist that you visit a particular medical practitioner.

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Ending Your Employment

You can’t work forever, especially when backpacking in New Zealand. But when resigning from your job, you need to give your employer notice by telling your manager or handing in a letter of resignation to your employer. Then you will work the notice period stated in your Employment Agreement. Check out the good practices for ending your employment in our guide, How to Quit Your Job in New Zealand.

If your employer chooses to end your employment through dismissal, restructuring or redundancy, then they must follow a formal process. For example, if being dismissed, you have the right to be told what the problem is. In any case of the employer ending your employment, you should be given a genuine opportunity to contribute to decisions.

You may be able to raise a personal grievance if you believe your employer has acted unjustifiably in ending your employment. See below for employment relationship problems.

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Resolving Problems at Work: How to Deal with Employment Relationship Problems

Both you and your employer should know your employment rights, most of which should have been understood in the Employment Agreement. However, if you believe you are not treated fairly at work, these are the steps you should take:

• First, both you and your employer should talk to each other to try to come to an agreement to fix the problem. It’s good to know the facts and to know your minimum employment rights.
• If you feel your employment rights have been breached, you can contact the free MBIE Service Centre at 0800 20 90 20.
• If that doesn’t work, more formal proceedings can be carried out by the Employment Relations Authority, or the Employment Court.