Contractor vs Employee

When working in New Zealand, you’ll either be an employee or a contractor. Here’s the difference: 

Employee

  • Works under an individual or collective employment agreement. 
  • Receives hourly wages or an annual salary, with benefits like paid leave and job protections. 
  • Employer deducts tax (PAYE) and contributes to KiwiSaver (retirement savings plan) if eligible. 
  • Most International Medical Graduates coming to NZ for a permanent role are on Tax code M.

Contractor

  • Self-employed, earning income by invoicing clients for services provided. 
  • Not covered by most NZ employment-related laws or the Employment Relations Act 2000. 
  • Responsible for own tax, ACC levies, and retirement savings. 
  • Common for locum doctors and nurse practitioners on short-term placements. 
  • If you’re taking on locum work, speak to an accountant or tax advisor about managing your income effectively. 

NZ Employment Law

New Zealand has strong worker protections. As an employee, you’re entitled to: 

  • A minimum of four weeks’ annual leave per year. 
  • At least 10 days’ paid sick leave per year. 
  • A workplace free from discrimination, bullying, or harassment. 
  • Safe working conditions under NZ health and safety laws. 
  • Fair notice periods before termination. 
  • You also have responsibilities—turning up for work on time, following workplace policies, and ensuring safety for yourself and others.

What’s included in my employment contract?

Your employment contract will outline the key terms of your role. Here’s what you can expect: 

Annual Leave

  • Four weeks minimum per year, usually granted after 12 months. 
  • Many employers allow you to take accrued leave earlier if needed. 
  • Taking time off to rest, travel, and recharge is encouraged!

Public Holidays

  • New Zealand has 12 public (or Bank) holidays each year. 
  • You’re paid for these if they fall on a day you would normally work. 
  • If your regular day off is Monday, you wouldn’t be paid for a Monday public holiday.

Sick Leave

  • 10 days per year (accrued over time if unused). 
  • Some employers offer sick leave from day one, others after 3 or 6 months. 
  • Can be used for yourself or to care for your partner, children, or dependants. 

Parental Leave

  • If you’ve worked at least six months, for 10 or more hours per week, you’re entitled to 26 weeks’ paid parental leave when having or adopting a child under six. 

Bereavement Leave 

  • After 6 months of continuous employment, you can take up to three days of paid leave, depending on your relationship to the person who has died. 
  • If more time is needed, employers may grant additional leave at their discretion. 

Continuing Medical Education (CME) | Continuing Professional Development (CPD)

Maintaining your professional knowledge and skills is important, and most medical employers will support your ongoing education. 

  • Hospital specialists: Entitlements are set out in MECA (Multi-Employer Collective Agreement). 
  • General Practitioners: CME/CPD allowance is offered at your employer’s discretion and will be detailed in your contract. MCNZ (Medical Council of New Zealand) and RNZCGP (Royal New Zealand College of General Practitioners) provide guidance on required professional development.