Overtime Pay Laws

assisting employers since 1995

Overtime Pay & Overtime Pay Laws

There is no such thing in legislation as overtime rates in New Zealand. An overtime rate can be agreed on by an Employer and Employee, but there is nothing in law which stipulates this as a requirement regardless of however many hours are worked. Employers are not obligated to pay more per hour for overtime worked so can continue to pay the same hourly rate when employees have completed 40 hours or more when they work more hours.

Very often in a wage paid role (by the hour) we do see overtime rates included for hours over and above a standard working week (40 hours) but it is rare in salaried positions.

An overtime rate is an example of a penal rate. A penal rate means a payment rate in addition to a standard rate, and there are some penal rates legislated.  For example; working on a Public Holiday. An employee working on a Public Holiday must be paid Penal Rates at time and a half of their normal rate.
There are few obligations on employers to pay penal rates other than any that have already been agreed to in their employment agreements and Public Holidays.

For the terms and conditions of Public Holidays (time & a half) please refer to our Annual Holidays and Leave eBook.

For more information on the Annual Holidays and Leave publication click here >>