New Zealand – Innovare Group

Expand into New Zealand with Innovare

New Zealand, a picturesque island nation in the southwestern Pacific Ocean, offers a unique blend of natural beauty and a stable economy, and numerous growth sectors such as technology and renewable energy. Innovare empowers seamless business expansion into this thriving market with our Employer of Record (EOR) services. Our extensive expertise and unwavering commitment to compliance ensure a smooth transition for your venture within New Zealand’s dynamic business landscape.

Brief Overview

Innovare New Zealand

Deep understanding of New Zealand’s growing sectors, including technology, renewable energy, and its world-renowned agricultural and tourism industries.

Streamlined employment, payroll, and tax compliance processes, making it easier for businesses to operate in New Zealand.

Strong commitment to local regulations, ensuring full compliance with key regulatory bodies like the Inland Revenue Department (IRD) and the Accident Compensation Corporation (ACC).

Expert support for acquiring both expatriate and local talent, enabling businesses to hire with confidence.

Local Expertise

Country-Specific Solutions

Onboarding

New Zealand law mandates employers to provide new hires with a written employment agreement outlining key employment terms. Here’s a breakdown of the general elements the employment agreement should encompass:

Job Description: Clearly defined roles and responsibilities to set performance expectations.
Work Schedules: Standard workweek is 40 hours, generally from 9:00 AM to 5:00 PM. Overtime pay is mandatory for hours beyond the standard workweek. Some companies offer flexible work options, including a four-day workweek.
Compensation and Benefits: Clearly state salary and any benefits. New Zealand’s minimum wage is $23.15 per hour for adults and $18.52 per hour for those on starting-out or training wages.
Leave Entitlements: Includes annual leave, sick leave, public holidays, bereavement leave, and parental leave.

Important Note: Employers must register new employees with the Inland Revenue Department (IRD) for tax purposes and with the Accident Compensation Corporation (ACC) for workplace accident insurance. Additionally, employers must enrol employees in the KiwiSaver retirement savings scheme if they meet the eligibility criteria.

Payroll Services

Payroll cycles in New Zealand vary depending on the agreement between employer and employee. Common options include weekly, bi-weekly, and monthly payments. Employers must ensure compliance with payroll regulations, including deductions for PAYE and KiwiSaver contributions. Innovare simplifies payroll management, ensuring timely payments and tax compliance.

Taxes

The corporate tax rate in New Zealand is 28%, and businesses are taxed based on their worldwide income (for resident companies) or New Zealand-sourced income (for non-resident companies). Key taxes include:

Leave

New Zealand labor laws offer employees several leave entitlements:

Annual Leave: Four weeks of paid leave after 12 months of employment.
Public Holidays: 11 public holidays annually. If employees work on these holidays, they must be compensated with at least time and a half and a day off in lieu.
Sick Leave: 10 days of paid sick leave after six months of continuous employment.
Bereavement Leave: Three days for the death of a close family member and one day for others.
Parental Leave: Up to 26 weeks of paid parental leave and 52 weeks of unpaid leave for eligible employees.

Termination

Termination in New Zealand must follow a fair and transparent process:

Notice Period: Must be provided as outlined in the employment agreement or a reasonable period if not specified.
Good Faith: Employers must act honestly and communicate clearly throughout the process.
Valid Reason: Termination must be based on legitimate reasons such as misconduct, poor performance, redundancy, or incapacity.
Fair Process: Employers must inform the employee of the issue, allow a response, and consider it before making any decisions.
Redundancy: Requires a clear process, including consultation with affected employees.
Unjustified Dismissal: Employees can challenge a dismissal if they believe it was unjustified.

New Zealand Market Insight

Stable Economy

New Zealand boasts a stable economy with a strong reputation for political stability and a well-managed fiscal environment. This provides a conducive climate for businesses seeking long-term investments.

Skilled Workforce

New Zealand has a well-educated and skilled workforce emphasising innovation and creativity. This talent pool can be a valuable asset for businesses looking to establish operations in the country.

Strong Business Relationships

New Zealand maintains strong trade relationships with various countries, including Australia, China, and the United States. These relationships allow businesses to access international markets and expand their operations.

Global Reach