Are you a global company interested in hiring employees in New Zealand? If so, read about how a New Zealand Employer of Record can help you do so, quickly and cost-effectively.
A New Zealand Employer of Record (EOR) is a company that provides comprehensive HR solutions for international businesses operating in New Zealand. These organizations are co-employers, which means they share employer responsibilities with the company they’re working with.
When a company contracts with an EOR, the EOR assumes employer tasks and liabilities for legal purposes. The business continues to manage the day-to-day operations, but the EOR handles functions like payroll processing, tax filing, employee benefits, workers’ compensation, and compliance with employment laws and regulations.
In New Zealand, EORs have become increasingly popular as businesses look to streamline their operations and focus more on their core competencies. New Zealand’s friendly business environment, robust economy, and straightforward legal system make it an attractive destination for businesses.
A New Zealand EOR offers a similar service to a New Zealand Professional Employer Organization (New Zealand PEO). You can read more about that model in our guide to NZ PEOs.
When a company partners with a New Zealand EOR, the EOR effectively becomes the legal employer. The EOR takes on a range of responsibilities including:
Although the EOR assumes these responsibilities, the client company retains control over business operations and management decisions. This means the company continues to direct the employees’ day-to-day activities and maintain their unique company culture.
In addition to these core services, some New Zealand EORs also provide additional support, such as HR consulting and New Zealand work permit sponsorship.
New Zealand EORs offer numerous benefits for businesses:
While there are many benefits to using a New Zealand EOR, it’s important to consider potential disadvantages:
EORs play a crucial role in modern businesses by enabling companies to streamline their operations and maintain compliance with employment laws. While there are potential drawbacks, the benefits often outweigh these, particularly for companies looking to expand in or into New Zealand. When selecting an EOR, businesses should consider factors such as cost, services offered, and industry reputation.
Yes, an EOR can hire employees on behalf of your company. However, the final decision on who to hire remains with your business.
No, while EORs are particularly useful for international companies, they also provide value for domestic companies by managing complex HR tasks, ensuring compliance, and offering access to competitive benefits packages.
