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Employment Termination in New Zealand

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Termination process

The termination process in New Zealand must adhere to a fair and reasonable process. The details are laid out in the Employment Contract offered at the beginning of employment.

A dismissed employee who is not on a trial period is entitled to request a written statement outlining the reason for dismissal within 60 days of being notified of the dismissal. The employer must provide this within 14 days of the request.

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Notice period

Employers must give an appropriate amount of notice as listed in the employment agreement. Depending on the nature of the role, 4 weeks' notice is often considered fair in New Zealand.

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Severance pay

Severance pay must be given in accordance with the employment agreement.

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Probation periods

Employers may use a paid probationary period for a variety of reasons including to assess an employee’s skills or to allow time for an employee to improve. All details must be outlined in the employment contract. The period must include a fair assessment of the employee in writing. A probation period of three months is common.

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