Pay and sick leave for RSE workers

If you are a Recognised Seasonal Employer (RSE), you must pay RSE workers at least the minimum New Zealand wage, and ensure they receive the correct amount of sick leave.

Paying the minimum wage

(RSE) must pay RSE workers at least the New Zealand minimum wage.

If the RSE worker is returning for their third or subsequent season, the RSE employer must pay them at least 10% above the current minimum wage.

Minimum requirements for RSE worker employment agreements

Minimum wage rates and types — Employment New Zealand

Providing sick leave

RSE employers must:

  • give RSE workers 2 days of paid sick leave from their first day of employment
  • give RSE workers an additional 2 days of sick leave each month until they reach a total of 10 days of sick leave on their 4-month anniversary, and
  • record the sick leave entitlement in written employment agreements.

Example

If an RSE employee starts their employment on 10 October 2025, their entitlement to paid sick leave will look like this:

Table: Example of sick leave entitlement
Date Sick leave entitlement
10 October 2025 — day 1 2 days
10 November 2025 2 days
10 December 2025 2 days
10 January 2026 2 days
10 February 2026 2 days
10 March 2026 Full entitlement provided
10 April 2026 Full entitlement provided

Incorporating paid sick leave into payroll systems

To record sick leave for RSE workers, the options in your payroll system could include:

  • adding a new sick leave type specifically for RSE workers
  • using an additional leave or payment type currently within the system (for example, a contractual leave type)
  • using 'sick leave in advance' as the relevant leave type if this is the only option available in the system.

You can discuss your options with your payroll provider.

Note

If you use a type of additional leave, where possible, this should be clearly noted as 'RSE sick leave', or similar. This will show it is different from other types of leave or payments, including any leave provided in advance of entitlement.

Manual process when using 'sick leave in advance'

If you are 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 are added to eligible RSE workers' sick leave entitlement balances from their first day of employment
  • an additional 2 days of sick leave are added to that balance at the end of each month until the RSE worker has been given 10 days of sick leave when they complete 4 months of employment, and

Record keeping for RSE workers' sick leave

You need to make sure your record keeping for RSE workers' sick leave is accurate and complete.

Under employment law you must record:

  • the dates the RSE worker became entitled to sick leave and their current entitlement to sick leave
  • the dates and amounts paid when an RSE worker takes a day of paid sick leave.

RSE instructions require you to record that:

  • 2 days of sick leave are added to eligible RSE workers' sick leave entitlement balances on their first day of employment
  • an additional 2 days of sick leave are added at the end of each month until the RSE workers have been given 10 days of sick leave when they complete 4 months of employment.

You may also need to:

  • record or flag eligible RSE workers in your payroll system
  • put in place any manual processes or workarounds that are required if your payroll system cannot record the new sick leave entitlement or payment.

Keeping accurate records — Employment New Zealand

Paying sick leave

Payment must be an amount that is at least 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 241 KB

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

If RSE workers leave before completing 4 months of employment

If an RSE worker leaves before they have completed 4 months of employment, you must 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.

Making deductions from an RSE worker's final pay

When an RSE worker's employment ends, you cannot deduct payments for sick leave from their final pay, even if:

  • there is a general deduction clause in the employment agreement
  • the worker has given you some other form of written consent.

However, you can make deductions from an RSE worker's final pay if the deductions meet the requirements in the Wages Protection Act 1983.

Example

An RSE worker started work with you on 1 October but left before completing 2 months of work.

During that time, they took 5 days of paid of sick leave – but they were only entitled to 4 days of the sick leave.

While the Holidays Act 2003 does not mention making deductions taken for sick leave taken in advance, you can deduct 1 day of sick leave from the worker's final pay if you:

  • comply with the Wages Protection Act 1983 and the RSE requirements for employment agreements, and
  • make sure the RSE worker was paid at least the minimum remuneration for the week they took sick leave in advance, in line with RSE requirements.

Deductions under the Wages Protection Act 1983 — Employment New Zealand

Paying out unused sick leave

You do not need to pay out any balance of sick leave to RSE workers at the end of their employment.