Employment in New Zealand is primarily governed by the Employment Relations Act 2000 and the Holidays Act 2003. Employers must provide good-faith employment relationships, minimum leave entitlements, and comply with KiwiSaver auto-enrolment obligations. The Labour Inspectorate of the Ministry of Business, Innovation and Employment (MBIE) enforces breaches.
Employees are entitled to a minimum of 4 weeks' paid annual leave after 12 months of continuous employment with each employer. Annual leave must be calculated on the higher of ordinary weekly pay or average weekly earnings over the past 52 weeks. Leave can be taken in agreement with the employer.
How ClockIt Helps
ClockIt automatically calculates annual leave entitlement using the greater-of formula (ordinary vs. average weekly earnings), ensuring correct payouts and preventing underpayment breaches.
New Zealand has 11 national public holidays (including Waitangi Day, ANZAC Day, and the Christmas/New Year cluster) plus one regional anniversary day. Employees who work on a public holiday that is an 'otherwise working day' receive at least time-and-a-half pay plus an alternative paid holiday.
How ClockIt Helps
ClockIt's NZ holiday calendar automatically distinguishes public holidays from ordinary days per employee's roster, calculating the correct time-and-a-half premium and tracking alternative holiday balances.
From July 2021, employees are entitled to 10 days of paid sick leave per year (previously 5), accruing from the employee's first entitlement date. Employees are also entitled to 3 days' paid bereavement leave for the loss of a close family member, and 1 day for other bereavements.
How ClockIt Helps
ClockIt manages both sick and bereavement leave balances separately, alerting managers when an employee requests leave that exceeds their current entitlement and suggesting carry-forward options.
Employers with fewer than 20 employees may dismiss a new employee within the first 90 days without risk of a successful personal grievance claim for unjustified dismissal, provided the trial period is in a written employment agreement signed before the employee starts work. Larger employers cannot use this provision.
How ClockIt Helps
ClockIt marks trial period employees in your roster with an automatic expiry alert, ensuring HR takes action or transitions them before the 90-day window closes.
All new employees aged 18–65 must be auto-enrolled in KiwiSaver (unless they opt out within 56 days). Employer minimum contribution is 3% of gross salary; employee default contribution is 3% (or 4%, 6%, 8%, or 10% at their election). Contributions are deducted and remitted via the IRD's payroll process.
How ClockIt Helps
ClockIt tracks enrolment status, opt-out deadlines, and contribution elections per employee, generating IRD-compatible payroll deduction reports at each pay cycle.
The adult minimum wage is reviewed annually on 1 April. As of 1 April 2024 it is NZD $23.15/hour. A starting-out / training rate of NZD $18.52/hour applies to workers aged 16–19 in their first 6 months with an employer (or in industry training). Paying below minimum wage attracts penalties of up to NZD $50,000.
How ClockIt Helps
ClockIt validates every shift pay rate against the current minimum wage thresholds (adult, starting-out, and training), blocking payroll if any employee would be underpaid.
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