Labour hire in New Zealand operates under a different legislative framework from Australia — one that is in some ways simpler and in others more prescriptive. Employers expanding into New Zealand, or workforce providers operating across both markets, need to understand where the two systems align and where they diverge before making assumptions based on Australian experience.
This guide covers the key structural differences between labour hire in Australia and New Zealand, with a focus on employment law, licensing, and the regulatory context that shapes how contingent workforce arrangements work in each market.
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Key takeaways
- New Zealand does not have a labour hire licensing regime — there is no equivalent to the Queensland, Victorian, South Australian or ACT licensing systems that apply in Australia.
- The Employment Relations Act 2000 governs the employment relationship in New Zealand and contains specific provisions about triangular employment arrangements (labour hire) that were strengthened by 2020 amendments.
- New Zealand’s minimum employment standards — including the minimum wage, holidays and leave entitlements — apply to labour hire workers in the same way they apply to direct employees, and the host employer can carry liability in some circumstances.
No licensing regime — but that does not mean no compliance
Unlike several Australian states, New Zealand has no mandatory labour hire licensing regime. There is no equivalent to the Queensland Labour Hire Licensing Act or Victoria’s Labour Hire Licensing Act — any entity can operate as a labour hire provider without a government-issued licence. This does not mean the sector is unregulated; rather, the regulation comes through employment law, immigration law, health and safety legislation and industry codes rather than a provider licensing framework.
For employers accustomed to using licence status as a proxy for provider quality and compliance in Australia, the absence of a licensing regime in New Zealand means that due diligence on provider compliance posture needs to be done differently — through direct assessment of the provider’s employment practices, payroll systems, health and safety management, and track record, rather than by checking a register.
Triangular employment — the NZ framework
The Employment Relations Act 2000 was amended in 2020 to specifically address triangular employment arrangements — situations where an employee of one entity (the labour hire provider) works under the direction and control of another (the host employer). The amendments gave employees in triangular employment arrangements additional rights and created clearer obligations for both the provider and the host.
Key features of the NZ triangular employment framework:
- Employer obligations shared: the host employer can be joined to personal grievance proceedings initiated by a labour hire worker. If the Employment Relations Authority finds that the host’s actions contributed to the grievance, the host can be ordered to pay compensation or reinstatement — not just the provider.
- Good faith obligations: New Zealand employment law places a strong emphasis on good faith between employers and employees. Both the provider and the host employer have obligations to act in good faith toward the labour hire worker — this is broader in scope than the WHS-focused obligations that are the primary host employer duty in most Australian states.
- Right to raise concerns with the host: labour hire workers in New Zealand have the right to raise personal grievances against a host employer in certain circumstances, which is not a direct equivalent in Australian labour hire law.
Minimum employment standards in NZ — what applies to labour hire workers
Labour hire workers in New Zealand are employees of the provider and are entitled to all minimum employment standards that apply under New Zealand law, including:
- Minimum wage: the adult minimum wage applies, updated annually by the government. As at April 2024 it was NZ$23.15 per hour. There is no award system equivalent to Australia — minimum wage is the baseline for most workers, with collective agreements or individual employment agreements providing higher rates in some industries.
- Holidays Act entitlements: the Holidays Act 2003 provides four weeks’ annual leave, 11 public holidays, and sick leave entitlements. The Holidays Act has been subject to significant compliance complexity — payroll calculation of leave entitlements has been a major source of back-pay liability across New Zealand employers, including several large organisations. Labour hire providers must calculate leave correctly for all workers.
- KiwiSaver: the New Zealand equivalent of superannuation. Employers must contribute a minimum of 3% of gross earnings to eligible employees’ KiwiSaver funds. Eligibility rules and contribution mechanics are different from Australian superannuation — providers operating in both markets need to manage both systems correctly.
Health and safety — WorkSafe NZ and the HSWA 2015
New Zealand’s Health and Safety at Work Act 2015 (HSWA) is broadly similar in structure to the Australian Model WHS legislation — both are based on a PCBU (person conducting a business or undertaking) framework with overlapping duties between parties. For labour hire, the host employer is a PCBU in relation to the working environment and the tasks being performed; the provider is a PCBU in relation to the employment relationship and the worker’s fitness and competency.
The practical implications mirror those in Australia: the host controls the site and the hazards; the provider is responsible for confirming the worker is competent, trained and fit for work. Both parties must cooperate and coordinate their duties. WorkSafe New Zealand enforces these obligations, and the penalties for serious breaches are significant — including imprisonment for reckless conduct that creates a serious risk to workers.
Immigration — a practical consideration for NZ workforce supply
New Zealand has a significant migrant worker population in industries that commonly use labour hire — horticulture, construction, logistics and manufacturing. Immigration New Zealand imposes obligations on employers of migrant workers, including accreditation requirements for certain visa types. Labour hire providers placing migrant workers must ensure their employment practices comply with immigration conditions and that workers are not placed in roles or locations that breach their visa conditions. This is an area where Australian experience does not directly translate — NZ immigration categories, visa conditions and employer obligations differ materially from Australian equivalents.
Related reading
Also see: Labour Hire vs Permanent Recruitment: Choosing the Right Hiring Model.
For a closely related guide, read NZ Employment Law for Contingent Workforce: Employer Obligations.
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FAQ
Do Australian labour hire licences apply in New Zealand?
No. Australian state labour hire licences are jurisdiction-specific and have no legal effect in New Zealand. New Zealand does not have a labour hire licensing regime, so there is no equivalent requirement. Providers operating in both countries need to manage Australian licensing obligations in Australian states and NZ employment law obligations in New Zealand independently.
Can a NZ host employer be sued by a labour hire worker?
Yes, in certain circumstances. The 2020 Employment Relations Act amendments allow labour hire workers to bring personal grievance claims against host employers where the host’s actions contributed to the grievance. This is a meaningful difference from the Australian position, where the host employer’s exposure in personal grievance-type situations is primarily through WHS and accessorial liability pathways rather than a direct employment relationship.
Is the Holidays Act compliance issue resolved?
The Holidays Act 2003 has been the subject of significant compliance failures across New Zealand — including back-pay remediation programmes by major employers, government departments and DHBs. Legislation to reform the Act has been in development for several years. As at 2026, employers should ensure their payroll systems correctly calculate leave entitlements under the current Act and monitor legislative developments for reform. Do not assume a payroll system that was compliant in 2020 is still calculating correctly — get it reviewed.
How does KiwiSaver compare to Australian superannuation for labour hire providers managing both markets?
The systems differ in contribution rates, opt-out mechanics, fund structures and compliance requirements. Australian providers expanding into NZ need to establish separate KiwiSaver processes rather than extending their AU super processes. The minimum employer contribution (3%) is lower than Australia’s current superannuation guarantee rate, but the calculation mechanics and enrolment obligations are different enough to require specific NZ payroll configuration.
Next step
If you need workforce solutions in New Zealand or support managing a cross-Tasman labour hire operation, explore staffing services.
General information only: This article is for general informational purposes only and does not constitute legal advice. New Zealand law applies in New Zealand — consult a qualified New Zealand employment lawyer for guidance specific to your situation.
