Understanding who can access employee wage and leave records—and in what format—is a critical compliance matter for all New Zealand employers. Getting it wrong can result in privacy breaches, penalties, or strained relationships with regulatory bodies. Here’s what you need to know.
The Legal Framework
New Zealand employers must maintain accurate wage and leave records under the Wages Protection Act 1983, the Employment Relations Act 2000, and the Holidays Act 2003. But keeping records is only half the story—knowing when and how to release them is equally important.
The Privacy Act 2020 also plays a crucial role here, as employee records contain personal information that must be handled appropriately. The key principle is that release of records requires either statutory authority or proper consent.
Records to Current and Former Employees
When to release: Employees have an automatic right to access their own wage and leave records at any time, whether they’re currently employed or have left your organisation. You must provide these within a reasonable timeframe—typically within 5-10 working days.
Format: There’s no prescribed format, but records should be clear and understandable. Most employers provide:
- Payslips (electronic or printed copies)
- Leave balance statements
- Payment summaries showing gross wages, deductions, and net pay
- Holiday and leave accrual records
Former employees often request these records for mortgage applications, benefit claims, or disputes about final payments. Be prepared to provide records covering their entire period of employment, as you’re required to retain these for at least seven years.
Best practice: Make payslips and leave balances easily accessible through employee self-service portals where possible. This reduces administrative burden and gives employees instant access to their information.
Records to Inland Revenue (IRD)
When to release: The IRD has statutory authority to request wage and leave records under the Tax Administration Act 1994. You must comply with any formal information request, which typically comes during:
- PAYE audits and reviews
- Investigations into suspected non-compliance
- Verification of employment income for social policy purposes
Format: The IRD will specify their required format, which usually includes:
- Employment information forms (IR348 or equivalent)
- Detailed wage and salary records showing gross pay, PAYE, and other deductions
- Records of fringe benefits and employer superannuation contributions
- Leave payments and redundancy payments
You generally have 10 working days to comply with an IRD information request, though this can vary depending on the scope of the request.
Best practice: Maintain accurate month-end and year-end reconciliations. When an IRD audit arrives, clean records make the process far less stressful and demonstrate good faith compliance.
Records to the Labour Inspectorate (MBIE)
When to release: Labour Inspectors have broad powers under the Employment Relations Act 2000 to enter workplaces and require production of wage, time, and leave records. This can occur during:
- Routine compliance visits
- Investigations of employee complaints
- Minimum wage and holiday pay enforcement actions
You cannot refuse an Inspector’s request—they have statutory authority, and obstruction can result in significant penalties.
Format: Inspectors will typically request:
- Wage and time records for all employees (or specific employees under investigation)
- Leave and holiday pay calculations
- Records showing compliance with minimum wage and overtime requirements
- Employment agreements
- Time and attendance records
The Inspector may request these in whatever format makes their review easiest—often digital formats like Excel spreadsheets or PDF copies of payroll reports.
Best practice: Conduct regular internal audits of your wage and leave records. If you can’t easily produce accurate records for an Inspector, you’re likely non-compliant in other ways too.
Records to Employee Representatives
When to release: An employee representative (such as a support person, advocate, or lawyer) can access records only with the employee’s written authority. This commonly occurs during:
- Personal grievance proceedings
- Employment disputes
- Mediation processes
- Union-initiated inquiries
Without proper written authority from the employee, you should not release records to representatives, even if the employee verbally confirms they’ve given permission.
Format: The same format you’d provide to the employee themselves—clear, complete wage and leave records covering the relevant period. For legal proceedings, you may need to provide certified copies or sworn statements of accuracy.
Best practice: Obtain a clear authority document before releasing anything. A simple email from the employee confirming they authorise release to their named representative (with their representative CC’d) is usually sufficient.
Records to Third Parties: Unions, Franchisors, and Others
When to release: Third-party access is the most complex area because there’s no automatic right to employee records. Release depends on:
For Unions: Union officials have limited rights to access worksite information under Part 6A of the Employment Relations Act, but this generally doesn’t extend to individual employee wage records without consent. However, unions may request aggregated or anonymised data about wages and conditions for collective bargaining purposes.
For Franchisors: Franchise agreements may require franchisees to provide certain employment data to franchisors for compliance or brand protection purposes, but this doesn’t override the Privacy Act. You can only release identifiable employee information if employees have consented (usually at hiring) or if the information is genuinely anonymised.
For Other third parties: Banks, landlords, government agencies, or other parties requesting employment verification or wage records need the employee’s written consent. Full stop.
Format: This varies by purpose:
- Unions typically want aggregated data or specific information relevant to collective employment agreements
- Franchisors often want compliance reports showing adherence to employment standards
- Financial institutions want employment verification letters or recent payslips
Best practice: Develop a standard consent form that clearly explains what information will be released, to whom, and for what purpose. Never release identifiable employee information to third parties without documented consent unless legally required.
What Records Should You Actually Be Keeping?
To comply with all these potential requests, you need comprehensive records including:
- Employee names, addresses, and contact details
- Employment agreements and any variations
- Wage rates and payment dates
- Hours worked (for non-salaried employees)
- Gross wages, all deductions, and net wages paid
- Holiday and leave balances and payments
- Sick leave records
- KiwiSaver contributions
- PAYE and other statutory deductions
These records must be kept for a minimum of seven years, and they must be readily accessible. If you can’t produce accurate records when required, you’re exposing your business to significant risk.
The Risks of Getting It Wrong
Failing to properly maintain or release wage and leave records can result in:
- Labour Inspectorate penalties of up to $10,000 for businesses and $2,000 for individuals
- Privacy Commissioner penalties for unauthorised disclosure
- Weakened position in employment disputes
- Damaged reputation with employees and regulatory bodies
Conversely, releasing records inappropriately can breach employee privacy and result in complaints to the Privacy Commissioner.
Making Compliance Easier
This is complex territory, and the consequences of errors are significant. At The Paymasters, we maintain comprehensive, audit-ready records for all our clients, ensuring you can respond quickly and accurately to any request—whether from an employee, the IRD, or a Labour Inspector.
Our systems are designed with compliance at their core, making it simple to generate exactly the right information in the right format for whoever needs it. More importantly, we understand the nuances of New Zealand employment law, so you can be confident you’re releasing information appropriately while protecting both your business and your employees’ privacy.
Need help ensuring your wage and leave records are compliant and accessible? Contact The Paymasters today for a confidential discussion about how our outsourced payroll services can take this compliance burden off your shoulders.