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New Zealand employment law does not set out a minimum notice period for employees who intend to resign. If an employment agreement doesn’t include a notice period clause which explicitly states the notice period, fair and reasonable notice must be given.
2 weeks is usually considered a fair and reasonable notice period in New Zealand.
If an employee fails to give sufficient notice, by abandoning their employment for example, the employer can deduct wages from the employee’s final pay or, in some circumstances, seek to recoup lost earnings.
It is good practice to include an abandonment clause in all employment agreements which sets out the response.
Employers who fail to provide notice may be in breach of The Employment Relations Act (2000). By creating comprehensive employment agreements that set out fair and proper processes, employers can avoid being the subject of grievance procedures with New Zealand’s Employment Relations Authority.
Contact us for a free consultation on your hiring project. By partnering with Horizons you ensure full compliance with New Zealand’s employment legislation, and mitigate the risk and associated costs of grievance procedures.
Yes, it is possible for the employer and employee to enter into negotiations on the length of the notice period. Before any action is taken, an agreement must be reached.
Potential actions include:
The employee agrees to work part of the notice period and their final payment reflects the proportion of the notice period that they worked.
Both employer and employee agree to waive the notice period entirely.
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Employees must give the notice period required by the employment agreement. If an employment agreement does not include a notice period clause, then ‘fair and reasonable’ notice must be given. In New Zealand, fair and reasonable notice is usually a minimum of 2 weeks.
Employers must follow a proper process before terminating an employment agreement in New Zealand. Unless an employee is being dismissed for serious misconduct, the employer must give notice. Usually, a minimum of 2 weeks’ notice is given.
Employers cannot pressure an employee to forfeit their notice period but it is possible to negotiate on the terms of the notice period. For example, an employer and employee may come to an agreement that the employee does not need to work the remainder of their notice period.
