Employer of Record in New Zealand
Skuad’s New Zealand EOR (Employer of Record) solution can help you expand your business in New Zealand without setting up any subsidiary in the country. Skuad’s automated global HR platform can seamlessly manage end-to-end hiring, employment contracts in New Zealand, payroll, benefits, and compliances for you. Skuad aims to give its clients a stress-free business diversification experience in New Zealand. Make the best use of business opportunities in New Zealand with Skuad’s EOR solutions. Connect with the Skuad experts to know more about it.
New Zealand at a Glance
Population: 5.09 million
Currency: New Zealand Dollar (NZD)
Capital city: Wellington
Languages spoken: English and Maori
GDP: $205.541 billion (2020)
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Employment in New Zealand
New Zealand has a comprehensive social security system. It is a non-contributory system wherein, neither the employees nor the employers contribute to the majority of the social security funds. However, self-employed individuals and employees must contribute to the ACC – Accident Compensation Corporation Scheme. It offers financial benefits to the workers who have met with an accident during working hours.
Permanent residents, foreign workers, and New Zealand nationals who are temporarily employed in the nation are also covered under social security schemes. WINZ – Work and Income New Zealand oversees all the social security benefits in New Zealand.
Contractors vs Full-Time Employees
One of the most crucial decisions that employers have to make while diversifying business in New Zealand is to decide between choosing contractors or full-time employees. Please note that New Zealand’s Employment Laws treat independent contractors differently from full-time employees. Therefore, it is essential to select the right kind of workforce for your business augmentation project.
Companies that are going to have a short-term expansion project in New Zealand should consider hiring contractors. The best part is, you do not need to bear any overhead costs like employee benefits, payroll taxes, and statutory payments. However, you might attract penalties and legal actions if you fail to fulfill the mandatory requirements.
On the other hand, hiring full-time employees will prove to be a wise decision if you are planning for a long-term business expansion project. Although it multiplies your responsibilities and liabilities, it will also create a loyal employee base for you.
Skuad is an expert on employment contract law in New Zealand. Our experienced in-house team can hire employees in New Zealand, handle their payroll, taxation, and other statutory compliances for you. Book a demo to know more.
Hiring in New Zealand
New Zealand has a moderately open and deregulated economy. It is one of the safest countries for business diversification. New Zealand is a small economy and therefore welcomes investors to set up their businesses here. There are two options when it comes to setting up a remote working team there; using the top job boards or partnering with hiring companies in New Zealand. Let us have a look at both the options:
Job Monster, New Kiwis, Careers. govt and Student Job Search are the highest-rated and free job boards in New Zealand. Although, Indeed, SEEK, Jora, Adzuna, and Jobster NZ offer both free and paid services. However, there are certain pros and cons of relying on this mode of hiring. There is no second thought that you can find exceptional talent on these portals. But, at the same time, some employers have also encountered misleading and fake profiles here.
To avoid such unfortunate incidents, companies should collaborate with the employer of record companies in New Zealand like Skuad. It takes care of all the employee background screenings ensuring the best employee base for you. Click here to know more about Skuad’s employers of record EOR solutions.
Probation & Termination: What You Should Know About Probation & Termination In New Zealand?
The standard probation period in New Zealand is 90 days. However, it can be extended to even 6 months, as per the mutual understanding between both the parties. Interestingly, probation laws in New Zealand apply to companies that have 19 or fewer employees.
The final probationary period in New Zealand must be agreed upon by both the employee and employer during hiring only. It is the best time for the employer to test the skills and traits of the employee. And the best time for an employee to determine the quality of work in the company.
Companies cannot right away dismiss employees unless it is for some serious misconduct. They must have a valid reason to terminate the services of an employee. Moreover, the employer also has to inform the employee in advance about the termination of the employment agreement in New Zealand. The notice period, in this case, ranges between 2-4 weeks.
At times, the employees qualify to receive severance pay from their employers. The total working hours and unused paid leaves form a major part of severance pay. Is there any scope for additional payments? Yes, only if it is explicitly mentioned in the agreement or negotiated in the leaving package. Employees also have a right to sue the employer, in case they do not receive their promised severance amount.
Understanding all the probation and termination laws can prove to be a daunting task for you. It can also distract you from focusing on your business augmentation goals. To alleviate such challenges, you should consider partnering with Skuad. With operations in over 150 countries, we will handle all your probation and termination requirements and offer you a hassle-free business expansion experience in New Zealand. Click here to know more about it.
The employer is responsible to handle all the employment liabilities, tasks, and legal processes of setting up a remote team.
Skuad’s unified and automated HR platform handles onboarding, timesheets, taxes, compliances, employee benefits, and payroll for your remote team. Utilizing Skuad’s unified employment platform sets you free from the hassles of complex work permit formalities, visa processing, and government statutory management. It will give you ample time and resources to refine your business diversification strategies in New Zealand.
Book a demo today to know more.
Types of Visas
There are different types of visas in New Zealand that allow immigrants to start a new life in New Zealand. Many people prefer this country for a relocation because there is a high demand for new talent here. However, only a handful of visa applications are approved per country. Apart from that, the visa application timeframe is also stringent here. Let us have a look at the different types of work visas in New Zealand.
Here is a list of mandatory documents for getting a work visa In New Zealand:
- Original passport with a validity duration of 6 months.
- Recent photographs with white background.
- Proof of good health and good character.
- Copy of visa application along with a covering letter describing the purpose visit to the country.
- At least 6 months bank statement to prove your financial viability to survive in New Zealand.
- Copies of valid credit cards with their detailed statement.
- Round trip air tickets with the itinerary.
- Employees have to submit their job confirmation letter, salary slips of the past 3 months, and original relieving letter from the past employer.
- Pick the appropriate visa category that clearly explains your purpose of visiting New Zealand.
- If your family members are accompanying you, make sure all their documents are complete and their expenses are met.
The process to apply for a work visa in New Zealand is as follows:
- Submit all the relevant documents at the New Zealand Visa Application Centre
- Deposit visa fee
- Please note that no Embassy interviews will be held to check and verify your documents.
- The New Zealand Immigration officials will approve all the documents and forward them for processing.
INZ - Immigration New Zealand, formerly known as NZIS – New Zealand Immigration Services, is responsible for administering all the visa applications, immigration requests, and border control in the nation. INZ is an agency that works under MBIE – Ministry of Business, Innovation, and Employment.
Understanding New Zealand’s work visa requirements and work permit formalities can prove to be an overwhelming task for companies. If you plan to expand your operations in New Zealand and want to obtain a New Zealand work permit for foreigners, collaborate with Skuad. Skuad's EOR solution can streamline government approvals and document collection processes for New Zealand work visas. Connect with Skuad experts today to know more about getting work permits in New Zealand.
Payroll & Taxes
Standard payroll frequency in New Zealand is either monthly or bi-weekly. However, employers have the ultimate authority to decide the payroll frequency for their employees. Moreover, The provision of the 13th salary does not exist in this nation. Let us have a look at Payroll & Taxes in New Zealand.
The majority of New Zealand’s employment requirements and payroll are straightforward. But things can get complex in Kiwisaver and GST calculations. Skuad manages payroll outsourcing in New Zealand and is an expert on New Zealand employer payroll taxes. Connect with the expert today to know everything about payroll and taxes in New Zealand.
Foreign companies can establish their subsidiary units in New Zealand, provided they satisfy all the work permit requirements. Different regions and cities have different costs, rules, and resource availability in New Zealand. Connecting with an industry expert to identify the best location for your business will prove to be a wise move here. Let us have a look at the basic steps of incorporating a holding company in New Zealand.
- Setting up an online service account
- Selecting a unique name for your subsidiary
- Gather information about company details, tax registration, directors, and shareholders
- Complete online company registration form
- Submit shareholders and directors consent forms
- Get a certificate of incorporation
Do you want to expand your business in New Zealand without setting up a physical entity there? Skuad’s New Zealand EOR solution can simplify this process for you. We can help you set up a remote team there and handle all employment compliances and regulations. Talk to a Skuad expert today to know more about it.
What Is PEO? Understanding The Basic Difference Between PEO And EOR
Professional Employer Organization (PEO) acts as your co-employer. It manages the end-to-end HR and administration functions of your remote team. The professional employer organization in New Zealand will be an administrative employer, whereas you will play the role of a work-site employer. However, all the major employee-related decisions will exclusively lie with you and not the PEO.
An EOR, on the other hand, acts as the legal employer of your remote team and will make all employee-oriented decisions relieving you from getting involved in the day-to-day HR decisions.
Employers who want to focus on their business scale-up should opt for an EOR solution. Right from hiring, onboarding, payroll, taxes, and termination, Skuad’s New Zealand EOR solution will handle everything for you. Skuad’s unified employment platform offers a hassle-free business expansion process. Find out more about Skuad here.
Do you know that New Zealand rules at the number one position when it comes to ease of doing business? Moreover, its stable and thriving political system, economic freedom, innovation and creativity, unmatched quality of life, and transparent business policies, make it a promising place to invest. Its low-rate broad-based tax system, evidence-based and streamlined regulations offer strong financial protection to the employers.
Still, New Zealand’s business market has its share of complexities. Are you also planning to step into the business domain of New Zealand? If yes, collaborate with Skuad’s New Zealand EOR to sail through smoothly. Our unified employment platform will handle all your cross-border payments, payroll, compliances, benefits, taxes, and work permits in New Zealand ensuring your complete focus on your business scale-up.
Apart from this, Skuad experts can also help you in exploring the best talent on a global scale. So what are you waiting for? Contact Skuad to know more.