Alex is Sprintlaw's co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
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It’s a pretty common situation for small business owners: a current or former staff member asks for a “certificate of employment”, and you’re not quite sure what you’re legally required to give them (or what you shouldn’t include).
On one hand, you want to be helpful and keep things professional. On the other, you don’t want to accidentally create legal risk by saying too much, disclosing private information, or making claims you can’t support.
This guide breaks down how a certificate of employment in New Zealand generally works, what employers typically include, when you might need to provide one, and how to issue it in a way that protects your business as well as your people.
As always, this is general information (not tailored legal advice). If there’s a dispute involved or the request feels sensitive, it’s worth getting advice before you send anything.
What Is A Certificate Of Employment In New Zealand?
A certificate of employment in New Zealand is usually a short written document from an employer confirming that an employee worked for the business.
In practice, it’s often used by employees for:
- new job applications (to verify employment history);
- certain visa or immigration-related processes (where an organisation asks for employment confirmation);
- renting a property (proof of income/employment);
- banking or lending applications;
- professional registrations or memberships.
It’s important to understand the difference between:
- a certificate of employment (usually factual confirmation of employment details); and
- a reference (which includes opinions about performance, character, strengths, suitability, etc.).
For employers, that distinction matters because a simple factual certificate is generally lower risk than a reference that includes subjective statements.
If you’re running a small business, it’s a good idea to have a basic process and template ready to go, so you can respond quickly and consistently.
Do Employers Have To Provide A Certificate Of Employment?
There isn’t a single “one-size-fits-all” rule that says every employer must provide a certificate of employment on request in every circumstance. However, in real-world employment relationships, it’s often seen as good HR practice (and consistent with a constructive approach) to provide a factual confirmation of employment when it’s reasonably requested.
In New Zealand, employment relationships are governed by a “good faith” framework (including under the Employment Relations Act 2000). While that doesn’t automatically create a strict, standalone legal obligation to provide a certificate in every case, it does mean employers should generally deal with employment-related matters in an open and communicative way.
From a practical standpoint, refusing a simple factual certificate can create unnecessary friction and may escalate issues that could otherwise stay straightforward.
That said, there are situations where you might:
- need to clarify what the employee is asking for (certificate vs reference);
- need time to check records (dates, job title, hours, pay arrangement);
- need consent before disclosing certain details (especially where it’s being sent to a third party);
- need to be careful about what you say if there’s an ongoing dispute.
Also, keep in mind that some “certificate” requests overlap with an employee’s rights under the Privacy Act 2020 to request access to their personal information. Depending on what’s being asked for (and how it’s framed), you may have separate obligations to respond to a privacy access request within required timeframes.
If you’re already dealing with a difficult exit, performance management, or a termination situation, it’s also worth making sure your paperwork is in order (including the underlying Employment Contract) before you issue any documents that could later be relied on.
When Do You Typically Need To Issue One?
Even though requests can come up at any time, there are a few common “trigger moments” where you’ll see requests for a certificate of employment in New Zealand.
1. When An Employee Leaves Your Business
A request often comes through right after resignation, termination, or redundancy.
Employees may be job-hunting immediately, and they’ll want documentation to confirm:
- they were employed by your business;
- the period of employment; and
- what their role was.
If you’re negotiating an exit or resolving a workplace issue, you might also cover what will be provided as part of a settlement. In those cases, the wording matters a lot, and it’s worth getting advice before you agree to anything in writing (including a Deed of Settlement).
2. During Employment (For Rentals Or Loans)
Current employees may request a certificate to support an application (for example, a tenancy application).
In those cases, you’ll want to think about:
- whether you’re confirming employment only, or also confirming income;
- whether the employee has consented to you providing information to a third party; and
- keeping the information limited to what’s necessary.
If you’re collecting, using, and disclosing employee personal information, you also need to keep privacy obligations in mind under the Privacy Act 2020. Many businesses find it helpful to document their approach in a Privacy Policy and internal procedures.
3. After A Business Sale Or Restructure
If you’ve sold your business (or bought a business) and staff are transitioning, employees might need employment confirmations for their own records.
These situations can get complex quickly, because the “employer” on paper may change even if the employee’s day-to-day job looks similar.
Where you’re dealing with staff implications in a sale, it’s worth thinking about the broader process and documentation (including what happens to employment records and what representations are being made about staff). If you’re in this situation, you may also find it helpful to review the employee-rights issues that can arise when selling a business.
What Should A Certificate Of Employment Include?
A good certificate of employment that New Zealand employers provide is usually short, factual, and easy to verify. Think of it as an “employment confirmation letter”.
Common details to include are:
- Employee full name (as per your records)
- Employer name (legal entity name, not just the trading name)
- Trading name (if relevant, and if you use one publicly)
- Position/title
- Employment type (e.g. full-time, part-time, casual)
- Employment start date
- Employment end date (if they’ve left) or “currently employed”
- Hours (optional, but often requested for proof of stable work)
- Work location (optional)
- Name and position of signatory (e.g. Director, HR Manager, Owner)
- Date issued
- Company contact details for verification
If the employee specifically needs pay information included (for example, for a rental application), be careful and keep it accurate. You might include:
- their salary/wage rate; and/or
- a general statement of remuneration arrangement (e.g. “paid hourly”); and/or
- confirmation they are employed on an ongoing basis (if true).
If you include pay details, it’s a good idea to ensure the numbers match payroll records and any written agreement. This is one of those areas where small “informal” statements can cause big issues later if they don’t line up with the contractual position.
What You Should Avoid Including
For most businesses, the safest approach is: stick to facts you can prove. Avoid including anything that is opinion-based or could be interpreted as a promise.
Common things to avoid in a standard certificate include:
- performance assessments (unless you’re intentionally providing a reference);
- the reason the employee left (especially if it was contentious);
- medical or health information;
- disciplinary matters or allegations;
- statements like “we would rehire them” (unless you’ve decided to provide a reference and are comfortable with that);
- anything you can’t verify with documents.
If you’re unsure whether something crosses the line into “reference territory”, you can keep the certificate minimal and offer a separate reference only if you’re comfortable doing so.
How To Issue A Certificate Of Employment Without Creating Risk
Because this document can be relied on by third parties, you want it to be consistent and carefully handled. A few sensible steps can keep you protected from day one.
Confirm Who The Certificate Is For (And Where It’s Going)
If you’re sending it directly to a bank, landlord, recruiter, or other third party, you should generally get written confirmation from the employee that they want you to disclose the information to that third party.
Even if you’re simply giving the certificate to the employee to forward on, it’s still smart to keep the content tight and factual.
Check Your Records Before You Sign
Small errors are common (wrong start date, incorrect job title, outdated entity name). These mistakes can cause real problems for the employee and come back to you.
Before issuing, check:
- the signed employment agreement and any variations;
- payroll records;
- termination/resignation correspondence;
- any change of role letters.
If your underlying documentation isn’t consistent, it may be worth tightening your employment paperwork overall. For example, having properly drafted Workplace Policy documents can help ensure you handle employment changes and record-keeping consistently.
Use A Template (But Don’t Treat It Like A One-Size-Fits-All Legal Document)
A template is useful to keep your process consistent. But don’t “copy-paste” without checking the details each time.
Also, if the request is linked to a dispute (for example, there’s an active personal grievance or settlement discussions), a standard template may not be appropriate.
Make Sure The Right Person Signs It
Choose a signatory who:
- has authority to sign on behalf of the business; and
- understands the importance of sticking to facts.
Many small businesses prefer the owner/director to sign. Others nominate a manager.
If your business has multiple entities (or you operate through a company structure), make sure the certificate matches the correct employing entity.
Keep A Copy On File
It’s a good idea to keep a copy of every certificate of employment you issue, along with:
- the request from the employee (even if it’s just an email);
- any consent provided (if sent to a third party); and
- the version you actually issued (PDF copy).
This is basic risk management. If there’s later a disagreement about what was said, you can show exactly what you provided.
Special Situations: Terminations, Redundancies, And Disputes
Most certificate requests are routine. But sometimes they come up in sensitive contexts, and this is where small businesses can accidentally expose themselves.
If The Employee Was Dismissed
If you terminated someone’s employment, you can still provide a certificate of employment that confirms factual details (dates, role, employment type).
What you generally want to avoid in a standard certificate is:
- commentary on why they were dismissed; or
- language that looks like you’re trying to justify the dismissal.
If there’s any chance the termination could be challenged, keep it tight and factual and get advice if needed. If you’re unsure whether your termination process was handled correctly, it may be worth speaking with an Employment Lawyer before you issue further documents.
If There Was A Redundancy
Redundancy situations can involve consultation obligations and careful process. If you’ve made someone redundant, you can still issue a certificate confirming employment details.
Be careful with wording about the reason for leaving. Sometimes a simple line like “employment ended on ” is enough.
If you’re going through redundancy planning, it’s worth getting the process right early so you’re protected from day one (and so the employee is treated fairly). That typically means getting advice and using proper documents, rather than DIY templates.
If There’s A Settlement Or Negotiated Exit
Where a dispute is being resolved, you might agree to provide:
- a neutral certificate of employment;
- an agreed reference letter; and/or
- an agreed “statement of service”.
These can be negotiated terms, and once you agree in writing, you’ll want to make sure you can follow through.
This is one of the most common moments where employers accidentally say more than they intended. If you’re not sure what to agree to, get advice before you sign anything.
If The Employee Was A Contractor
Sometimes someone asks for a certificate, but they weren’t actually an employee (they were an independent contractor).
That’s not just semantics - mischaracterising the relationship could create risk if it later becomes a contractor vs employee dispute. If you’re engaging contractors, it’s important your contracts and processes reflect the reality of the relationship.
If you’re unsure, it may be worth reviewing your contractor paperwork and considering a tailored Contractors Agreement.
Key Takeaways
- A certificate of employment in New Zealand is typically a short, factual confirmation of a person’s employment (it’s different to a reference).
- Even where it’s not strictly “mandatory” in every scenario, issuing a basic certificate on reasonable request is often a sensible, professional approach.
- Keep certificates accurate and low-risk by including core facts like role and dates, and avoiding opinions, performance commentary, or reasons for leaving (unless you’ve deliberately agreed to an “agreed reference”).
- Be careful about privacy and disclosures to third parties - get the employee’s consent if you’re sending information directly to someone else, and remember some requests may also be privacy access requests.
- Where there’s a termination, redundancy, or dispute, it’s smart to keep wording neutral and consider legal advice before issuing documents that could be relied on later.
- Set yourself up with consistent HR documentation and processes (including well-drafted employment agreements and policies) so requests like this are easy to handle.
If you’d like help with employment documents, workplace policies, or handling a tricky exit (including what you should and shouldn’t say in an employment certificate), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
