Running a business means wearing about twelve hats at once – including the HR hat you never actually applied for! These FAQs are here to give you straightforward, no-nonsense guidance on the most common questions NZ business owners ask us.
- We keep things simple, legal, and human.
- If it’s something we can answer quickly, we will.
- If it’s something high-risk, we’ll point you to the right place (usually: ‘call us before you press the big red button!’).
This is not legal advice – it’s the ‘here’s what you need to know before things get messy’ version.
Clear answers. Real talk. A little bit of Spice!
Employment Agreements and Hiring People
Q: Do I really need an employment agreement before a new staff member starts?
A: Yes. 100% yes! In NZ it’s a legal requirement, not a ‘nice to have’. In addition, a well-written agreement protects you and your new team member, sets clear expectations from day one, and avoids confusion later. More Reading
Top Tip: If your agreement template is so old it should qualify for long-service leave, we can help you with a refresh!
Q: Can we use a 90-day trial period?
A: Yes. However, your employee must be brand new to the business and must sign the agreement before they start doing any work. And if the wording isn’t exact, the trial could be invalidated. It’s one of the most commonly misused clauses in NZ. More Reading
Top Tip: If you want peace of mind, let us sanity-check your wording – it’s easier than fixing a failed trial later!
Q: Can I hire someone as a contractor instead of an employee?
A: Only if they genuinely meet the definition of a contractor! The IRD and Employment NZ look at the real working relationship, not the job title or type of agreement that was signed. Misclassification can prove expensive in the form of back pay for holidays, sick leave and KiwiSaver, so it’s important to get this right up front. More Reading
Top Tip: If you’re unsure, work through the 4 legal tests, or even simpler, call us! We can help you avoid misclassification headaches, and the potential financial risk attached.
Day to Day Workplace Questions
Q: Can I change someone’s hours or location because the business needs it?
A: You can only do this if the employment agreement allows for changes, you consult with the employee first, and you deal with them in ‘good faith’. Changing employment terms unilaterally is a no-no. Good faith and fair process apply here just as much as in restructures or dismissals. More Reading
Top Tip: There’s a change management process that you should follow whenever you’re considering making a change to an employee’s agreement – to ensure you’re following the principle of good faith. Talk to us before making any major changes!
Q: We’re a tiny team – can I make a chores roster so everyone pitches in?
A: Yes – if tasks are reasonable, safe, and shared fairly. Keeping the workplace tidy is fine; assigning personal errands is not!
Top Tip: We can help you word this in a policy or handbook, so it feels positive and about being a team player, not punitive.
Q: If someone’s on a salary, can I expect them to work longer hours sometimes?
A: You can – as long as it’s reasonable and aligned with the duties of the role. Salary does not mean ‘limitless hours’. You must act in good faith and keep expectations clear, consistent, and fair.
Top Tip: If long hours are creeping in, it’s probably time to take a good look at workload, staffing, or job design. We can help you review roles and set healthy, sustainable expectations.
When Things Get Tricky (Performance and Behaviour)
Q: Can I just let someone go if their performance isn’t cutting it?
A: No – not safely. You must outline concerns clearly, set clear expectations, provide support, and give reasonable time for improvement. Skipping or rushing this process is a fast track to a personal grievance! More Reading
Top Tip: It’s important to follow the process, tick all the boxes, and create a simple, fair and achievable improvement plan. Call us early so we can set you on the right path.
Q: What about misconduct – can I fire someone on the spot?
A: No. Even for serious misconduct, you must follow a fair process: investigate, put concerns in writing, allow them to respond, and genuinely consider their explanation. ‘Instant dismissals’ almost never hold up! More Reading
Top Tip: If you feel tempted to ‘act fast’, call us faster! We can also help you design a fair, easy-to-follow disciplinary process if you don’t already have one.
Q: How do I handle personality clashes or tension between staff?
A: Start with a conversation – genuinely. Most issues come down to misunderstanding, unclear expectations, or mismatched working styles. Facilitated informal discussions, more formal mediation, or DISC®-based communication tools can help reset the relationship. More Reading
Top Tip: People are tricky. Call us! We can support with meeting plans, coaching and guidance, insight into personality styles using Extended DISC®, or even running those tricky conversations for you.
Changing the Business (Restructure and Role Changes)
Q: We’re thinking of changing roles or reducing staff. What’s the process?
A: You need a genuine business reason, a clear proposal, consultation with all staff in affected roles, time for feedback, and consideration before any decisions. You’ll need to allow a minimum of 2 weeks, ideally more, not including any notice periods that will kick in. More Reading
Top Tip: We have a full restructure process and template pack – your best friend in a high-risk situation. Please talk to us before you start – fixing a bad restructure is far more expensive than doing it right!
Q: If someone’s role is disestablished under a restructure, do I have to pay redundancy?
A: Only if the employment agreement includes redundancy compensation. However, notice and final pay still apply. More Reading
Top Tip: Contact your payroll expert to make sure all key aspects are covered in terms of final pay.
Q: Can I skip consultation and just tell them the job is gone?
A: No. Consultation is mandatory under NZ law – and you never know what alternative options your team may come up with! More Reading
Top Tip: If ‘restructure’ is on your mind, get advice early – call us!
Ending Employment
Q: An employee resigned – can I make them leave right away?
A: Yes – if you both parties agree, or if you pay notice in lieu. Otherwise, they should work through their notice period. However, be careful to check that the resignation was not given in the heat of the moment, or via a chat message that could be misinterpreted. More Reading
Top Tip: If it’s not clear cut, or there have been problems with the employee in the past, contact us. We can check the resignation letter, look for any red flags that could point to a constructive dismissal personal grievance, and help you choose the best approach.
Q: What’s the safest way to end employment when things just aren’t working out?
A: It 100% depends on the situation – the safest approach varies based on whether the issue is performance, behaviour, personality fit, restructuring, or something else. More Reading
Top Tip: This area is high risk, so we always recommend getting tailored advice before taking action. Contact us and we’ll walk you through the best pathway for your scenario.
Q: What happens to staff if I sell the business?
A: Most of the time, employees don’t automatically transfer. You must follow the process around technical redundancy and offer employees the choice to move to the new employer. More Reading
Top Tip: If you’re buying or selling, talk to us early – people strategy is a big part of getting the deal over the line smoothly.
Health and Safety
Q: What is a Health and Safety Management System (HSMS), and why does my business need one?
A: An HSMS is a structured way of identifying hazards, managing risks, training people, and continuously improving safety practices. It’s not just a ‘nice to have’ – under the Health and Safety at Work Act 2015, managing risks is a legal requirement for all businesses. More Reading
Top Tip: A simple, well-documented system beats a complicated one every time. If you’d like help building something clear, practical and easy to use, we’re great at keeping H&S human.
Q: What is a PCBU, and does this apply to me?
A: Yes. A PCBU (Person Conducting a Business or Undertaking) covers almost every type of business entity—sole traders, companies, partnerships, and organisations. If you run a business, you’re a PCBU – with responsibilities to keep workers and others safe. More Reading
Top Tip: Understanding your PCBU duties is step one. Step two is making sure your team knows theirs—easy to do with the right inductions and H&S system in place.
Q: Do I really need to involve staff in health and safety decisions?
A: Yes. The law requires worker engagement, meaning you must involve people when identifying hazards, deciding on controls, or changing how work is done. Good engagement = fewer surprises and safer decisions. More Reading
Top Tip: Engagement doesn’t have to be formal. Toolbox chats, quick check-ins, or discussion at team meetings all count – consistency matters more than complexity. And your people are there on the spot – they may well have a better solution!
Q: How do I start putting a health and safety system in place?
A: Start by identifying the hazards in your workplace, assessing the risks, and deciding on the right controls. From there, build simple procedures, train staff, and document what you do. Templates like SSSP’s, SWMS, and SOP’s help keep things tidy and consistent. More Reading
Top Tip: Don’t aim for ‘perfect’ – aim for ‘clear and workable’. We can help you create straightforward procedures your team will actually use.
Q: What’s the hierarchy of controls, and why does everyone talk about it?
A: It’s the gold-standard method for managing risk: eliminate, substitute, isolate, engineer, administer, and PPE (in that order). The goal is always to choose the highest-level control that actually removes or reduces the risk – not rely on PPE alone. More Reading
Top Tip: When choosing controls, ask ‘Does this actually remove the risk?’ not just ‘Is this easy?’. Speak to your people when doing your review – they’re best placed to help you decide what good control looks like in your business.
Wrap Up
HR doesn’t need to be terrifying, it just needs to be intentional. If you’re staring at a tricky situation thinking ‘I really don’t want to stuff this up’, that’s exactly when to get in touch!
We can help you design processes, letters, and conversations that are legally safe, human, and aligned with the culture you actually want – not the one you end up with by accident.
Get in touch and just Add Spice. Anything great could happen!
