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New Zealand (Mori: Aotearoa [aɔˈtɛaɾɔa]) is a nation in the southwest Pacific Ocean. It is made up of two major landmasses, North Island (Te Ika-a-Māui) and South Island (Te Waipounamu), as well as around 700 smaller islands. It is the sixth-largest island nation in terms of land size, with 268,021 square kilometers (103,500 sq mi). New Zealand is located about 2,000 kilometers (1,200 miles) east of Australia across the Tasman Sea, and 1,000 kilometers (600 miles) south of the islands of New Caledonia, Fiji, and Tonga. The diverse geography and steep mountain peaks of the nation, notably the Southern Alps, are mostly due to tectonic uplift and volcanic eruptions. Wellington is New Zealand's capital city, while Auckland is its most populated city.
New Zealand's islands were the last significant livable continent to be colonized by humans due to their remoteness. Polynesians started to settle on the islands between 1280 and 1350, developing a unique Mori culture. Abel Tasman, a Dutch adventurer, was the first European to glimpse and document New Zealand in 1642. In 1840, delegates from the United Kingdom and Mori chiefs signed the Treaty of Waitangi, which established British control over the islands in its English translation. New Zealand became a colony of the British Empire in 1841, then a dominion in 1907; it obtained full formal independence in 1947, with the British queen remaining the head of state. Today, the bulk of New Zealand's 5.1 million people are of European heritage; the indigenous Mori are the biggest group, followed by Asians and Pacific Islanders. As a result, New Zealand's culture is mostly rooted from Mori and early British immigrants, with modern cultural expansion resulting from greater immigration. English, Mori, and New Zealand Sign Language are the official languages, with the local version of English dominating.
New Zealand, a developed country, rates well in worldwide assessments of national performance in areas such as quality of life, education, civil liberties protection, government openness, and economic independence. During the 1980s, New Zealand saw significant economic reforms that turned it from a protectionist to a liberalized free-trade economy. The national economy is dominated by the service sector, which is followed by the industrial sector and agriculture. International tourism is another important source of income. Nationally, legislative power is held by an elected, unicameral Parliament, while executive political power is held by the Cabinet, which is headed by the prime minister, presently Jacinda Ardern. The queen of the nation is Queen Elizabeth II, who is represented by the governor-general. In addition, for local government reasons, New Zealand is divided into 11 regional councils and 67 territorial authorities. Tokelau (a dependent territory); the Cook Islands and Niue (self-governing nations in free association with New Zealand); and the Ross Dependency, New Zealand's Antarctic territorial claim, are all included in the Realm of New Zealand.
New Zealand is a member of the United Nations, the Commonwealth of Nations, the Asia-Pacific Economic Cooperation, the Pacific Community, and the Pacific Islands Forum.
Almost every employee is entitled to at least four weeks of paid vacation every year. Casual employees, on the other hand, receive 8% holiday pay instead of 4 weeks annual vacation per pay period.
In the event of termination, unused leave is refunded.
New Zealand recognizes ten public holidays.
After the first six months of continuous work, employees are entitled to a minimum of five days paid sick leave every year, with an extra five days paid sick leave after each following 12-month period. The employer is responsible for this.
There is no method to prorate sick leave entitlements. Part-time employees, like full-time employees, are entitled to five days of sick leave each year.
Sick leave owed at the time of termination is not reimbursed.
Mothers are entitled to 26 weeks of maternity leave, known as primary care leave, and are paid between $177.00 and $585.80 a week before tax by the government.
Mothers who have a miscarriage or a stillbirth are entitled to three days of paid time off.
After six months of working, a spouse or partner is entitled to one week of unpaid leave, and after 12 months of employment, two weeks of unpaid leave. Leave can be taken at any time during the 21-day period preceding or after the delivery.
Fathers who lose a child due to miscarriage or stillbirth are entitled to three days of paid leave.
Parental leave in New Zealand includes primary care leave, special leave, partners leave, extended leave, and negotiated career leave, and it covers both maternity and paternity leave.
Parents who lose a child due to miscarriage or stillbirth are entitled to three days of paid vacation.
Special Leave-10 days of unpaid leave are given for pregnancy-related appointments.
Extended Leave – This is extended unpaid leave given to parents and depends on the amount of time an employee has worked. 52 extra weeks can be taken for a parent who has been employed for at least 12 months, and 26 weeks is given to a parent who has been employed for at least 6 months.
When an employer intends to terminate an employee's employment, the employer must notify the employee in advance (unless the employer is going to dismiss the employee without notice for serious misconduct).
Simply because an employment agreement specifies a notice period does not mean that the employer has the right to terminate the employee for any reason as long as the employee receives the required notice. Employers must still have a legitimate reason and follow a fair procedure. This also applies to fixed-term contracts.
An employee must notify their employer in advance of their intention to resign (generally outlined in the employment agreement). Depending on the role, two to four weeks' notice is frequently considered reasonable. Concerning notice of redundancy, if an employment agreement does not contain a specific clause providing for a period of notice in a redundancy situation,'reasonable notice' must be provided. The duration of 'reasonable notice' is determined by a number of factors, including the reason for the redundancy, the employee's length of service, the employee's seniority and/or remuneration package, custom, practice, and industry standards, the employee's ability to find alternative employment, and the amount of compensation paid (if any).
Only employers with fewer than 19 employees (on the day the employment agreement is entered into) may employ a new employee on a trial basis for the first 90 calendar days of their employment. A valid trial period must be agreed upon in the employment agreement prior to the employee commencing work, or the trial period will be null and void. A trial period must include a valid notice period in the employment contract, be applicable to any industry and job, and be agreed upon in good faith by the employer and employee. In other words, an employee cannot be forced to work on a trial period. Employers can use a probation period to evaluate the skills of a new employee or a current employee transitioning to a new position. Probation periods may be of any length (the standard is approximately three to six months), but the duration must be specified in the employment agreement.
Severance pay is calculated on the basis of hours worked up to the final day of employment, as well as any unused annual leave or days in lieu payments. Additional payments are negotiated as part of the leaving package or specified in the employment agreement. If an employee does not receive all components of his or her payment, he or she may file a claim for unpaid salary or other violations of the employment agreement.
In New Zealand, there are no legal restrictions on working hours. The traditional workweek is 40 hours, Monday through Friday, from 8:30 a.m. to 5 p.m., with a half-hour lunch break.
Generally, the hours agreed upon in an employment agreement are the only hours during which an employee must be present at work. Overtime hours and compensation should be negotiated as part of the employment agreement.
Numerous employees receive compensation if their employer requires them to work beyond their normal hours. However, there is no legal requirement that overtime pay be greater than the regular salary.
New Zealand has different minimum wages for adults, starting-out employees, and employees on training. Employees ages 16 and older qualify for the adult minimum wage, which is NZ$20.00 an hour before tax. The starting-out wage is NZ$16.00 an hour before tax and covers 16 and 17-year-olds working for one employer fewer than six months; 18 and 19-year-olds who meet certain specifications; and 16 to 19-year-olds with an employment agreement requiring 40 credits of industry training a year.
The minimum wage for training workers is NZ$16.00 an hour. To qualify as a training worker, the employee needs to be 20 years old or older and have an employment agreement that stipulates at least 60 credits of industry training a year.
In New Zealand, there is both public and private healthcare. Many companies provide health insurance as a perk or as an option.
Employees in New Zealand are entitled to a minimum of four weeks of annual leave, with the option of exchanging one week for cash. In addition, the nation has 11 official holidays on which workers are promised a day off. Although you may negotiate additional vacation days, you must keep this statutory minimum in mind when developing your New Zealand benefit management strategy.
Working parents are likewise entitled to maternity and paternity leave. Paid parental leave will be extended to 26 weeks beginning in July 2020. Employees with children may also utilize their sick leave entitlement, known as domestic leave, to care for their ill children or another dependent family member.
Non-resident businesses (including branches) are taxed on their New Zealand-sourced revenue, whereas New Zealand resident companies are taxed on their global income, subject to any relevant DTA.
The corporate income tax (CIT) rate in New Zealand is 28%.
A New Zealand resident gets taxed on his or her global income. A non-resident is solely taxed on income earned in New Zealand.
For workers with a taxable income up to NZD 14,000, the tax rate is set at 10.5 percent.
For workers with a taxable income between NZD 14,001 and NZD 48,000, the tax rate is set at 17.5 percent.
For workers with a taxable income between NZD 48,001 and NZD 70,000, the tax rate is set at 30 percent.
For workers with a taxable income between NZD 70,000 and NZD 180,000, the tax rate is set at 33 percent.
For workers with a taxable income above NZD 180,001, the tax rate is set at 39 percent.
A foreigner can apply for a work visa when there is a job offer from a New Zealand employer; a specific work-related purpose or event; a country that has a particular work scheme; or if a person has been studying in New Zealand.
Some work visas may potentially lead to permanent residency, which means the ability to live, study, and work permanently.
To apply, you must have the necessary skills, experience, and credentials for the New Zealand employment.
An essential skills work visa is a temporary work visa that permits for employment for a period of one to five years.
Work to residence visas are temporary visa alternatives that enable workers to get resident status after working full-time for two years.
Working holiday visas enable you to work and travel for a period of 12 to 23 months. These visa programs are determined by your country of origin.
A special purpose visa is for personnel who need to fulfill a specified assignment. These visas normally last 3-12 months, with international personnel sometimes awarded 3-year visas.
If the firm or employer is migrating to New Zealand, a relocating business visa is required.
Furthermore, from November 1st, 2021, all New Zealand firms that recruit foreign workers will be required to be certified.
Employees in New Zealand are required to sign a formal agreement outlining the conditions of their employment as well as their remuneration, perks, and termination obligations. In New Zealand, an offer letter and employment contract should be in English, and the pay and any compensation amounts should always be stated in New Zealand Dollars rather than a foreign currency.
In New Zealand, background checks are widespread.
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.
New Zealand Dollar
The process of establishing a subsidiary in New Zealand begins with examining several aspects such as your business and location. The nationality of your staff might have an impact on how you operate your company. Examine any current company ties and consider ways to enhance them throughout the growth.
You must also choose the finest location for your subsidiary's actual office space. Different cities and areas in New Zealand have their own subsidiary laws and expenses. If you are not working with a worldwide PEO, you should consult with a legal adviser or accountant to determine the optimal location inside New Zealand.
Once you've decided on the ideal location for your company, the New Zealand subsidiary establishment procedure consists of the following steps:
1. Check and reserve the name of your firm.
2. Organize your company's paperwork.
3. Forms of approval for lodge directors and shareholders
4. Register for employment tax and social benefits.
5. Obtain an industry code for your company (BIC)
Fortunately, the RealMe service streamlines the incorporation procedure in New Zealand. RealMe can provide you with all of the documentation you need to manage your new subsidiary, saving you time and effort during the registration procedure.
Before you may formally incorporate in New Zealand, you must first understand the country's intricate subsidiary rules. Begin by submitting shareholder and director information to the Registrar of Companies for inclusion in their file on your firm. The law requires you to update this information on a yearly basis.
Large enterprises with a non-resident ownership of 25% or more face extra constraints. Within six months after its balance date, these companies must produce audited financial accounts with the Registrar of Companies.