Pay and sick leave entitlements for RSE workers

Minimum pay

From 2 September 2024 workers returning for their third or subsequent seasons must be paid at least a minimum hourly rate of $25.47 (The New Zealand minimum wage $23.15 + 10%). All other workers must be paid at least a minimum hourly rate of $23.15 (The New Zealand minimum wage).

Minimum requirements for RSE worker employment agreements

Providing sick leave entitlement 

You are required to provide your RSE workers granted a RSE Limited Visa paid sick leave entitlement. 

Paid sick leave entitlement for eligible RSE workers means:

• giving them 2 days paid sick leave from their first day of employment and an additional 2 days each month until they reach a total entitlement of 10 days’ sick leave on their 4-month anniversary, and
• recording the new sick leave entitlement in written employment agreements.

For example, if an eligible RSE employee starts their employment on 10 October 2023 their entitlement to paid sick leave will look like this:

Incorporating new paid sick leave entitlement into payroll systems

Every electronic payroll system will have different functionality for accurately recording and providing the new sick leave entitlement to eligible RSE workers. If you use a payroll system discuss the options within the system with your payroll provider.

The options available in a payroll system could include:

• the addition of the new sick leave entitlement type specifically for RSE workers
• using an additional leave or payment type currently within the system (for example, a contractual leave type). Where possible, this leave should be clearly noted as ‘RSE sick leave’ (or similar) in the system to distinguish it from other types of leave or payments, including any leave provided in advance of entitlement
• using ‘sick leave in advance’ as the relevant leave type if this is the only option available in the system.

Manual process when using 'sick leave in advance' or similar option

Where using 'sick leave in advance', or a similar option, you will need to have a manual process in place to ensure:

• 2 days of sick leave is added to eligible RSE workers’ sick leave entitlement balances from their first day of employment. Then an additional 2 days of sick leave is added to that balance on completion of each month. This continues until a total of 10 days’ sick leave has been provided to the worker upon the completion of 4 months of employment, and
• when an eligible RSE worker’s employment ends that payments for the new sick leave entitlement are not deducted from the worker’s final pay, regardless of whether there is a general deduction clause in the employment agreement (or some other form of written consent has been obtained from the worker). 

Sick leave entitlement record keeping for eligible RSE workers

Regardless of the payroll system you use, you should ensure that your record keeping relating to the sick leave entitlement for eligible RSE workers is accurate and complete.

This is likely to involve:

• recording or flagging in your payroll system those workers who are eligible RSE workers
• ensuring that 2 days of sick leave is added to eligible RSE workers’ sick leave entitlement balances from the first day of employment, with an additional 2 days of sick leave added to their balances on completion of each month. This is until a total of 10 days’ sick leave has been accumulated for each eligible RSE worker who has completed 4 months of employment.
• recording the date and the amount paid when an eligible RSE worker takes a day of paid sick leave that they are entitled to receive under their employment agreement 
• implementing any manual processes or work arounds required if your payroll system does not have the functionality to record the entitlement or payments (for the new sick leave entitlement).

Keeping accurate records — Employment New Zealand

Paying the new sick leave entitlement

Payment should be an amount that is equivalent to the RSE worker’s 'relevant daily pay (RDP)' or 'average daily pay (ADP)' (if applicable).

What is Relevant Daily Pay? — Employment New Zealand PDF 241KB

Relevant daily pay vs average daily pay — Employment New Zealand PDF 416KB

Eligible RSE workers who leave before completing 4 months of employment

When an eligible RSE worker leaves before completing 4 months of employment, check if they have been paid sick leave:

• during their employment that they were entitled to under their employment agreement, or
• ‘in advance’ of entitlement.

Your payroll system should have the functionality to manage the new sick leave entitlement for eligible RSE workers and distinguish payments for the entitlement from other types of leave (or payments). If not, put in place a manual process to check whether sick leave paid to the worker was:

• payment they were entitled to under their employment agreement, or
• provided ‘in advance’ of entitlement.

When to deduct from the worker's final pay

Deductions are allowed, in line with with the Wages Protection Act 1983.

For example, an eligible RSE worker starts work with you on 1 October. They leave before completing 2 months with you. In that time they took 5 days of paid of sick leave, 4 days of the sick leave was leave they were entitled to. You treat as sick leave ‘in advance’ their fifth day of paid sick leave.

In the example, while there is no provision in the Holidays Act to recover sick leave in advance, you may deduct 1 day of sick leave from the worker's final pay if you:

• complied with the Wages Protection Act 1983 and the RSE requirements for employment agreements, and
• made sure your employee was paid at least the minimum remuneration for the week sick leave in advance was taken in line with RSE requirements.

Deductions under the Wages Protection Act 1983 — Employment New Zealand website

RSE requirements for employment agreements and minimum remuneration 

'Paying out' unused sick leave entitlement to an eligible RSE worker who ends their employment

There is no requirement to pay out any balance of the new sick leave entitlement.