Do I have to work my notice period in New Zealand?

Where the agreement is silent, the law implies “reasonable notice” based on the role, seniority and industry. There is no statutory formula: two to four weeks is typical, with one to three months common for senior positions, based on case law and Employment New Zealand guidance. The most useful step for an employee is to resign in writing and offer to work your notice: any early exit is then the employer’s decision and cost.

Where does my notice period come from?

Your notice period is a contractual term, not a statutory one. Section 65 of the Employment Relations Act 2000 sets out what an individual employment agreement must contain, but it does not prescribe a notice period. Most agreements say something like “either party may terminate this agreement by giving four weeks’ written notice,” and that binds both parties equally.

If your agreement is silent, or you have no written agreement at all, the law implies a term of reasonable notice. What is reasonable depends on seniority, length of service, industry norms and how long it would take to replace the person: shorter for junior roles, often one to three months for senior or hard-to-replace roles. That is a rule of thumb, not a formula.

Can my employer pay me in lieu of working my notice?

Only if the employment agreement allows it or you agree at the time. Payment in lieu of notice means the employer ends the employment immediately and pays what you would have earned over the notice period.

Without a pay in lieu clause, an employer that tells a resigning employee “don’t come back, we’ll pay you out” is ending the employment early. If you agree in writing, there is no problem. If the employer pays the whole notice period anyway, your loss is small, but it has still ended the employment early and cannot rely on your resignation date if a dispute arises. If it sends you home without paying the notice, that is a dismissal and a personal grievance risk.

For employers, the fix is simple: make sure your template agreement includes a clear right to pay in lieu of all or part of the notice period. Our employment agreements service can review your templates.

Can my employer refuse my resignation or force me out early?

An employer cannot refuse a resignation. Resignation is a unilateral act: once clearly communicated, the employment ends when your notice expires whether the employer “accepts” it or not. The Employment Court confirmed this in Urban Décor Ltd v Yu [2022] NZEmpC 56: employees who said they quit and walked out had resigned, and a later dismissal letter could not undo that.

What an employer cannot do is turn your resignation into an earlier exit on its own terms. If you give four weeks’ notice and the employer marches you out that afternoon with no pay in lieu or garden leave clause and no pay for the four weeks, that is a dismissal. In Shaw v Joint Property and Portfolio Management Ltd [2017] NZERA Auckland 263, the Authority found an employer breached good faith by immediately ejecting an employee who resigned “with immediate effect” without first clarifying what the employee meant about notice.

Such disputes are common. The Employment Relations Authority received 2,745 applications in 2024, up 29.6 percent on 2023, and about 1,539 were unjustified dismissal claims (Authority statistics summarised by Hesketh Henry).

Can my employer put me on garden leave?

Garden leave means you remain employed and paid during your notice period but are directed not to attend work, contact clients or colleagues, or start a new job. It is common in Wellington for sales, professional services and senior roles, to protect client relationships and confidential information.

An employer needs a contractual basis to do this. Most modern agreements include an express garden leave clause, often alongside a restraint of trade. New Zealand law does not give every employee a right to be provided with work, but for some roles (commission earners, and roles where skills or profile depend on practice) a direction to stay home without a clause can breach the agreement.

“Most notice period disputes I see are not about the clause itself, they are about the 48 hours after someone resigns. Employers tell people to leave immediately, employees fire off a heated email and walk out, and both sides then discover the agreement did not give them the right to do what they just did. Five minutes with the termination clause before anyone speaks would prevent most of these disputes.” Andy Bell, Partner, Lane Neave (Legal 500 Asia Pacific Recommended Lawyer; Doyle’s Guide Recommended Employment Lawyer 2026)

What happens if I just leave without working my notice?

Leaving without notice breaches your employment agreement. In theory the employer can claim damages; in practice, its remedies are limited and rarely worth pursuing.

The employer must prove actual loss caused by the breach, such as the extra cost of temporary cover above your normal wages. It cannot simply claim the value of the unworked notice or withhold your final pay as punishment, and any claim must go to the Employment Relations Authority, which usually costs more than the loss.

Can my employer deduct money from my final pay if I do not work my notice?

Only with your written consent, and only if the deduction is reasonable. Section 5 of the Wages Protection Act 1983 prohibits deductions from wages without the employee’s written consent, and section 5A requires any deduction under a general deductions clause to be reasonable and preceded by consultation.

A signed clause allowing the employer to “deduct an amount equal to any unworked notice” is a starting point, not a blank cheque. Employment New Zealand guidance and the Authority both treat a deduction for unworked notice as lawful only if it reflects the employer’s genuine loss and is not a penalty, so a clause that simply docks a full notice period’s wages will often be unenforceable.

What if I resigned in the heat of the moment and want to take it back?

You can ask to withdraw a resignation, but the employer does not have to agree, because a clear resignation stands once communicated. In Mikes Transport Warehouse Ltd v Vermuelen [2021] NZEmpC 197 the Employment Court confirmed that a cooling-off period is not always required and the test is objective: would a reasonable employer, knowing the circumstances, have understood the employee to have resigned?

Context still matters. Words spoken in anger and immediately retracted may not be a genuine resignation at all, so a prudent employer faced with an emotional “I quit” should pause, confirm in writing what was meant, then act.

Treating an equivocal outburst as a resignation risks a finding that the employer actually dismissed the employee, which invites an unjustified or constructive dismissal claim.

What am I owed in my final pay when I leave?

Your final pay must include wages to your last day, unused annual holidays, any public holidays falling within your notional holiday period after termination, and anything else owing under your agreement. It is due on or before the pay day for your final pay period.

Under the Holidays Act 2003, holiday pay on termination has two parts. Under 12 months’ service, you receive 8 percent of gross earnings, less any holiday pay already paid. After 12 months, you receive untaken entitled leave at the greater of ordinary weekly pay or average weekly earnings, plus 8 percent of earnings since your last anniversary.

The Employment Leave Act 2026 will replace the Holidays Act 2003, but not until August 2028, so the Holidays Act rules still govern every final pay today. See our post on big leave balances and cashing up holidays.

Do notice periods still apply during a 90-day trial period?

Yes. A trial period stops the employee raising a personal grievance for unjustified dismissal, but it does not remove the notice period. Section 67A of the Employment Relations Act 2000 requires the trial period to be agreed in writing before the employee starts, and section 67B requires notice to be given within the trial period, in the amount the agreement specifies.

Get this wrong and the protection falls away: give no notice, or notice after the 90 days expire, and the employee has full personal grievance rights. All employers have been able to use trial periods since December 2023, and the Employment Relations Amendment Act 2026 widened the bar to unjustified disadvantage claims about the dismissal, but the notice rule is unchanged. See our post on trial period traps.

What is abandonment of employment?

Abandonment is when an employee stops turning up, gives no explanation, and shows no intention of returning. Most agreements treat an unexplained absence of three or more consecutive working days as the employee ending their own employment.

The clause is not self-executing. The employer must first make genuine, documented attempts to contact the employee, and if there is a good reason for the absence and the employee intends to return, the job is not abandoned.

Key takeaways

• Read the termination clause first: notice, pay in lieu, garden leave, deductions and abandonment are all contractual. No clause usually means no right.
• Employees, resign in writing and offer to work your notice: any early exit is then the employer’s call.
• Employers, do not send a resigning employee home on the spot: without a pay in lieu or garden leave clause, or written agreement, that is a dismissal.
• Never treat a heated “I quit” as final without checking: confirm in writing first.
• Final pay follows the Holidays Act 2003 until August 2028: check the 8 percent calculation and any deductions.

Dealing with a resignation dispute, garden leave or a final pay argument? Book a free 30-minute consultation with our Wellington employment team, or see our services for employees and employers.

Frequently Asked Questions

What is the minimum notice period in New Zealand?

There is no statutory minimum notice period in New Zealand. Notice comes from the employment agreement, and if the agreement is silent the law implies reasonable notice. Two to four weeks is typical, and longer periods are common for senior roles.

Can my employer make me leave immediately after I resign?

Only if your agreement contains a pay in lieu of notice or garden leave clause, or you agree to leave early. Otherwise the employer is ending the employment early: if it pays out the full notice your loss is small, but if it sends you home unpaid that is a dismissal and you can raise a personal grievance.

Do I get holiday pay if I resign?

Yes. Every employee is paid for unused annual holidays in their final pay. Under 12 months’ service this is 8 percent of gross earnings, less any holiday pay already paid or holidays taken in advance (section 23 of the Holidays Act 2003); after 12 months it is untaken entitled leave at the greater of ordinary weekly pay or average weekly earnings, plus 8 percent of earnings since your last anniversary.

What is garden leave in New Zealand?

Garden leave is a period during your notice when you remain employed and paid but are told not to come to work, contact clients or start a new job. An employer can only direct garden leave if your employment agreement contains a garden leave clause or you agree to it.

Can I withdraw my resignation in NZ?

You can ask, but the employer does not have to agree. A clear resignation is binding once communicated. If you resigned in the heat of the moment, tell your employer in writing the same day that you did not mean it; the test is whether a reasonable employer would have understood you to have genuinely resigned.

Andy Bell is a Partner at Lane Neave, an employment lawyer acting for employees and employers in Wellington. He is a Recommended Lawyer in the Legal 500 Asia Pacific and a Recommended Employment Lawyer in Doyle’s Guide 2026.

Last updated: 17 August 2026