Resignation in NZ: A Guide for Employers and Employees

Resignation is when an employee decides to leave their job. It’s a normal part of working life, but it can bring stress if the process isn’t handled well. For businesses in New Zealand, understanding the rules around resignation is important to keep things fair and professional.

In New Zealand, resignation is guided by employment agreements, workplace culture, and employment law. The way a resignation is handled can impact team morale, compliance, and even the reputation of the business. From resignation letters to notice periods and final pay, employers need to know what’s required so they can respond in the right way.

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In this guide you’ll learn:

• How resignation works under New Zealand law
• What to do when an employee resigns
• Notice periods and final pay rules
• How to support staff during the resignation process
• Practical tips for employers in Auckland and across New Zealand

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What Is Resignation in New Zealand?

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Resignation is when an employee chooses to end their employment. Most employees provide a resignation letter or resignation email, which sets out their notice of resignation and last working day.

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Sometimes resignations are simple, like when someone finds a new opportunity. Other times, employees may feel forced to resign because of workplace issues, which can lead to a personal grievance after resigning.

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How to Resign and How Employers Should Respond

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Employees usually submit a resignation letter or resignation email. While there’s no single “best resignation letter” template, it should include:

• A clear statement to resign
• The intended last working day
• Thanks to the employer (optional but recommended)

Employers should always acknowledge a resignation in writing. Even if the resignation is verbal, it’s wise to confirm it by email or letter.

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Resignation Notice Period in NZ

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The resignation notice period employees must give depends on their employment agreement. Some agreements require two weeks’ notice, others four. There’s no standard law that forces employees to give four weeks, but the contract rules apply.

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If an employee wants to resign effective immediately, the employer can choose to accept or decline. In practice, many employers agree to immediate resignation letters for personal reasons if it works for the business.

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Resigning During Trial or Probation Period

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Resigning during a 90-day trial period or during probation is usually easier. The same resignation notice applies, but agreements often have shorter notice periods during these times. Employers should still treat the process respectfully.

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Final Pay After Resignation

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When an employee resigns from work, their final pay must include:

• All hours worked up to the last day
• Holiday pay or annual leave owed
• Alternative holidays (days in lieu) not taken

Questions often come up such as: Do days in lieu get paid out when you resign? Yes, if they haven’t been taken. Do you get paid sick leave when you resign? No, unused sick leave isn’t paid out.

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Immediate Resignation in New Zealand

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Sometimes employees give an immediate resignation letter for personal reasons. While this isn’t always ideal, employers can accept it. If the employer suffers a genuine loss because no notice was given, they may raise the issue, but in most cases, businesses simply adjust and move forward.

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Key Takeaways for Employers

• Always check the employment agreement for notice of resignation rules
• Confirm resignations in writing, even if verbal
• Calculate final pay carefully, including leave entitlements
• Accept that some employees may resign effective immediately
• Support staff leaving to keep workplace culture strong

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