Changing or losing a job

Priya leaves a secure job and is dismissed at day 55

Priya earns $68,000 a year in a permanent role. She resigns to take a new job that starts on a valid 90-day trial. At day 55 the new employer dismisses her with one week of notice, as the agreement allows. She did nothing wrong; the role simply was not a fit.

1. Old weekly gross pay: $68,000 divided by 52 = $1,307.69
2. Notice paid by new employer: 1 week = about $1,307 gross
3. Redundancy pay: $0, because the law does not require it and her new agreement had no redundancy clause
4. Unjustified-dismissal grievance: not available, the trial was valid

After one week of notice pay, Priya has no income until she finds new work or a benefit starts

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Tane signs after he starts, so the trial fails

Tane is offered a job with a 90-day trial clause. He starts on the Monday and signs the employment agreement on the Wednesday, two days after his first shift. At week six he is dismissed with no reason given.

1. Trial requirement: the agreement must be signed before the first day of work
2. Tane signed two days after starting, so the trial is invalid
3. Because the trial is invalid, his normal rights apply

Tane can raise a personal grievance for unjustified dismissal, just as any other employee could

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Mele is dismissed on a valid trial but is still owed her pay

Mele works six weeks on a valid 90-day trial, earning $1,000 gross a week. She is dismissed with the one week of notice her agreement requires. Her final pay looks light, so she checks the numbers.

1. Wages for hours worked: 6 weeks at $1,000 = $6,000 gross
2. Notice: 1 week paid = $1,000 gross
3. Holiday pay under the Holidays Act 2003: 8% of gross earnings
4. Holiday pay on $6,000: $6,000 times 0.08 = $480

Even under a valid trial, Mele must be paid every hour she worked plus $480 holiday pay

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Sam is dismissed for a discriminatory reason

Sam is on a valid 90-day trial. After he tells his manager he has a health condition that will need occasional medical appointments, he is dismissed the next week. The employer says only that it is a trial dismissal.

1. Unjustified-dismissal grievance: blocked by the valid trial
2. Discrimination grievance: not blocked by the trial
3. Timing and messages suggest the dismissal followed his disclosure

Sam can raise a personal grievance for discrimination, which a trial does not remove

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Aroha: "$85k base + KiwiSaver" vs "$88k total package"

Aroha has two offers. Offer A is an $85,000 base salary with employer KiwiSaver paid on top. Offer B is quoted as an $88,000 "total remuneration package" that includes the 3.5% employer KiwiSaver. The $88,000 sounds $3,000 better. Is it?

1. Employer KiwiSaver: $85,000 x 3.5% = $2,975

Total remuneration: $85,000 + $2,975 = $87,975

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Ben: Higher base vs better benefits

Ben compares a $95,000 base with no extras against a $90,000 base that adds employer-paid health insurance ($2,200 premium), life insurance ($600 premium) and five extra days of annual leave. Both pay 3.5% employer KiwiSaver.

1. Offer A: $95,000 + KiwiSaver $3,325 = $98,325
2. Offer B base: $90,000
3. KiwiSaver: $3,150
4. Health insurance: $2,200
5. Life insurance: $600
6. Five days leave ($90,000 / 260 x 5): $1,731

Offer B total remuneration: $97,681

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Chloe: A steady salary vs a role with a bonus

Chloe compares a steady $80,000 base with no bonus against a $72,000 base plus a target bonus of "up to $15,000". The company has paid about 60% of target in recent years, so a realistic bonus is around $9,000. Both pay 3.5% employer KiwiSaver.

1. Offer A: $80,000 + KiwiSaver $2,800 = $82,800
2. Offer B cash: $72,000 base + $9,000 bonus = $81,000
3. Offer B KiwiSaver: $81,000 x 3.5% = $2,835

Offer B total remuneration on target: $83,835

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Dev: A lower salary with much more leave

Dev compares a $78,000 role with the standard four weeks of leave against a $73,000 role that offers six weeks of leave (10 extra days) and two work-from-home days a week. Both pay 3.5% employer KiwiSaver.

1. Offer A: $78,000 + KiwiSaver $2,730 = $80,730; take-home $61,014.50
2. Offer B: $73,000 + KiwiSaver $2,555 = $75,555; take-home $57,602

Offer A pays about $3,412 a year more in the hand

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Solar Panel Installation for Business

A warehouse is considering installing solar panels to reduce electricity costs.

1. Initial cost (panels + installation): $80,000
2. Annual electricity savings: $18,000
3. Government rebate (Year 1): $5,000
4. Discount rate: 8%
5. Expected panel life: 25 years

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Software Development Project

A tech company must choose between developing two different software products.

1. Development cost: $500,000
2. Year 1 revenue: $120,000
3. Year 2 revenue: $180,000
4. Year 3 revenue: $250,000
5. Year 4+ revenue: $300,000
6. Discount rate: 15% (high-tech risk)

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Restaurant Equipment Upgrade

A restaurant chain is considering upgrading kitchen equipment in 10 locations.

1. Total equipment cost: $400,000 ($40,000 per location)
2. Labour savings per year: $95,000 (more efficient equipment)
3. Energy savings per year: $25,000
4. Increased capacity revenue: $30,000/year
5. Total annual benefit: $150,000
6. Discount rate: 12%

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When DPB Says "No"

A startup considers an expensive marketing campaign.

1. Upfront cost: $300,000
2. Expected new customers: 500 in Year 1, 200/year after
3. Revenue per customer: $400/year
4. Discount rate: 20% (startup risk)
5. Company's cash runway: 3 years

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Priya - A $10,000 Rise That Crosses a Bracket

Priya earns $75,000 and is offered a rise to $85,000. Part of the rise sits in the 30% band and part crosses into the 33% band at $78,100.

1. $75,000 to $78,100 = $3,100 taxed at 30% = $930
2. $78,100 to $85,000 = $6,900 taxed at 33% = $2,277
3. Income tax on the rise: $930 + $2,277 = $3,207
4. ACC levy on the rise: $10,000 x 1.75% = $175
5. Total deducted from the rise: $3,207 + $175 = $3,382

Take-home from the $10,000 rise: $6,618 a year (about $551 a month)

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Sione - What a $6,000 Rise Adds Each Payday

Sione earns $58,000 and negotiates a rise to $64,000. The whole $6,000 rise stays inside the 30% band, so the maths is simple.

1. Income tax on the rise: $6,000 x 30% = $1,800
2. ACC levy on the rise: $6,000 x 1.75% = $105
3. Total deducted: $1,800 + $105 = $1,905
4. Take-home from the rise: $6,000 - $1,905 = $4,095 a year

That is about $341 more a month, or roughly $157 more a fortnight

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Hannah - Base Plus KiwiSaver vs a Total Package

Hannah has two offers. Offer A is $80,000 base plus the 3.5% employer KiwiSaver on top. Offer B is quoted as an $82,000 total remuneration package that already includes the 3.5% employer KiwiSaver. The bigger headline looks like Offer B, but she checks.

1. Offer A: $80,000 base, plus employer KiwiSaver of $80,000 x 3.5% = $2,800. Total value $82,800.
2. Offer B: $82,000 package includes the 3.5% employer KiwiSaver.
3. Offer B base: $82,000 / 1.035 = $79,227, with employer KiwiSaver of about $2,773.

Offer A pays about $773 more base salary and $800 more in total value, despite the smaller headline.

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Marcus - Negotiating the Offer Up

Marcus researches his role and finds a market range of about $70,000 to $85,000. The first offer is $72,000. He thanks the employer, points to his research and experience, and asks for $80,000. They settle at $78,000, a $6,000 uplift.

1. Uplift negotiated: $78,000 - $72,000 = $6,000 (all in the 30% band)
2. Income tax on the uplift: $6,000 x 30% = $1,800
3. ACC levy on the uplift: $6,000 x 1.75% = $105
4. Take-home from the uplift: $6,000 - $1,905 = $4,095 a year

Over five years that is at least $20,475 more in the hand, before any future percentage rises compound on the higher base

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Aroha signs a trial after she starts, so it fails

Aroha is offered an office role on $58,000 a year with a 90-day trial clause. She starts on the Monday and signs the agreement on the Wednesday, two days into the job. At week five she is dismissed with no reason given.

1. Trial rule: the agreement must be signed before the first day of work
2. Aroha started on Monday and signed on Wednesday, so she signed after starting
3. Because she signed after starting, the trial is invalid
4. Her weekly gross pay: $58,000 divided by 52 = $1,115.38

The trial cannot be relied on, so Aroha can raise a personal grievance for unjustified dismissal like any other employee

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Daniel is asked to sign a wide restraint of trade

Daniel is a hairdresser earning $55,000. His new agreement contains a restraint of trade saying he cannot work as a hairdresser anywhere in New Zealand for 12 months after he leaves. He is worried it would stop him earning a living.

1. A restraint is only enforceable so far as it is reasonable to protect a genuine business interest
2. Reasonableness is judged on how long it lasts, how wide the area is, and how much it limits earning a living
3. A whole-of-country ban for 12 months would stop Daniel earning his $55,000 salary anywhere, which looks far wider than needed

A court could reduce this restraint, for example to a few months within a small radius of the salon, or strike it out, but Daniel should negotiate it down before signing rather than gamble on that

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Mere faces a deduction for a till shortage

Mere works 30 hours a week in retail at $24.50 an hour, so her gross weekly pay is 30 times $24.50 = $735. One evening the till is $80 short. Her agreement has a general deductions clause, and her manager says the $80 will come out of her next pay.

1. Weekly gross pay: 30 hours times $24.50 = $735
2. Proposed deduction: $80 for the till shortage
3. Under the Wages Protection Act 1983, deductions need to be required by law or have your written consent
4. Even with a general deductions clause, the employer must consult Mere before making this specific deduction and cannot deduct an unreasonable amount

The employer cannot simply take the $80 on the strength of a blanket clause. Mere is entitled to be consulted first, and the deduction must be fair and reasonable

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Sina compares two offers on notice and availability

Sina has two job offers. Offer A pays $62,000 with a four-week notice period and no availability clause. Offer B pays $64,000 with a one-week notice period and an availability provision that asks her to be on call for up to 10 extra hours a week, with no compensation for being available.

1. Offer A weekly pay: $62,000 divided by 52 = $1,192.31
2. Offer A notice cushion: 4 weeks times $1,192.31 = $4,769.23
3. Offer B weekly pay: $64,000 divided by 52 = $1,230.77
4. Offer B notice cushion: 1 week times $1,230.77 = $1,230.77
5. Offer B availability clause: pays no compensation for being on call, so it is not a lawful availability provision

Offer B pays $2,000 more a year, but gives $3,538.46 less notice cushion and includes an availability clause that does not meet the legal test. Sina should ask Offer B to fix the notice and the availability terms before choosing on pay alone

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Aroha - unpaid final holiday pay (8% of gross)

Aroha worked casual hours at a cafe for seven months, then left. She never took any annual holidays, and her final pay left out her holiday pay. Her total gross earnings for the whole job were $28,000.

1. Employed less than 12 months, so holiday pay is 8% of gross
2. Gross earnings: $28,000
3. Holiday pay: $28,000 × 8% = $2,240
4. Holiday pay already paid: $0

Final holiday pay owed: $2,240

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Tane - minimum wage top-up

Tane was paid $22.00 an hour through the 2026/27 year, but the adult minimum wage from 1 April 2026 is $23.95 an hour. He worked 1,200 hours in that time. He was underpaid for every hour.

1. Correct rate: $23.95 per hour
2. Rate paid: $22.00 per hour
3. Shortfall per hour: $23.95 - $22.00 = $1.95
4. Hours worked: 1,200

Wages owed: $1.95 × 1,200 = $2,340

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Mere - years of unpaid overtime

Mere regularly worked two extra hours a week that were never paid, at her agreed rate of $30 an hour. This went on for the last four years. She wants to know whether she can still claim it.

1. Unpaid hours: 2 per week
2. Weeks worked over 4 years (about 48 paid weeks a year): 192
3. Total unpaid hours: 2 × 192 = 384
4. Rate: $30 per hour

Wages owed: 384 × $30 = $11,520

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Wiremu - final pay after more than a year

Wiremu worked full time for two years at $30 an hour, 40 hours a week, so his ordinary weekly pay is $1,200. When he left, he had three weeks of unused annual holidays from his last entitlement, and he had earned $30,000 gross since his most recent work anniversary.

1. Unused annual holidays: 3 weeks at the greater of ordinary weekly pay or average weekly earnings
2. Ordinary weekly pay: $1,200
3. Unused holidays: 3 × $1,200 = $3,600
4. Plus 8% of gross since last anniversary: $30,000 × 8% = $2,400

Final holiday pay: $3,600 + $2,400 = $6,000

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Ana works an 8-hour retail shift

Ana works in a shop from 9am to 5pm, earning $25 an hour. That is an eight-hour work period, including her unpaid lunch.

1. Work period: 9am to 5pm = 8 hours, which falls in the more than 6 and up to 8 hours band
2. Rest breaks: two 10-minute paid rest breaks
3. Meal break: one 30-minute unpaid meal break
4. Paid hours: 8 hours minus the 30-minute unpaid meal = 7.5 paid hours
5. Pay for the shift: 7.5 hours times $25 = $187.50

Ana is paid for 7.5 hours, including her two paid rest breaks, and takes 30 minutes unpaid for her meal

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Hemi works a 5-hour cafe shift on the minimum wage

Hemi works in a cafe from 11am to 4pm, a five-hour shift, on the adult minimum wage of $23.95 an hour.

1. Work period: 11am to 4pm = 5 hours, which falls in the more than 4 and up to 6 hours band
2. Rest break: one 10-minute paid rest break
3. Meal break: one 30-minute unpaid meal break
4. Paid hours: 5 hours minus the 30-minute unpaid meal = 4.5 paid hours
5. Pay for the shift: 4.5 hours times $23.95 = $107.78

Hemi is entitled to one paid rest break and one unpaid meal break, and is paid for 4.5 hours

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Grace is casual and works two different shifts

Grace is a casual worker. One week she does a three-hour shift on Tuesday and a seven-hour shift on Saturday. She is not sure whether being casual changes her break rights.

1. Casual and part-time workers get the same breaks, based on the hours of each shift
2. Tuesday, 3 hours, in the 2 to 4 hours band: one 10-minute paid rest break, no meal break
3. Saturday, 7 hours, in the more than 6 and up to 8 hours band: two 10-minute paid rest breaks and one 30-minute unpaid meal break

Grace gets one paid rest break on her short shift and two paid rest breaks plus an unpaid meal break on her long shift, exactly as a permanent worker on the same hours would

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Tom is denied his breaks and works through lunch

Tom works seven-hour shifts, five days a week, at $28 an hour. His manager is short-staffed and tells him to work through his 30-minute unpaid meal break every day, with no break and no extra pay.

1. Entitlement for a 7-hour shift: two paid rest breaks and one 30-minute unpaid meal break
2. Tom is made to work through the 30-minute meal break, so that time is work and must be paid
3. Unpaid time per day: 30 minutes = 0.5 hours times $28 = $14
4. Over a 5-day week: 5 times $14 = $70 of pay he is owed

Tom should record the missed breaks, raise it with his employer, and claim the $70 a week of unpaid worked time, with free help from Employment New Zealand if it is not fixed

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