Managing in peak season: Labour management tips for farmers

With the busiest summer months of New Zealand’s farming sector in full swing, Findex Human Resources experts are warning that poor labour planning can have costly consequences for both productivity and compliance. With seasonal workers in high demand farmers face heightened risks around payroll accuracy, health and safety obligations and contractor versus employee classification.

Findex Human Resources Senior Client Manager Steph Mullally says the risks are particularly acute in January when long hours, fatigue and workplace safety risk increases.

“This is the time of year when mistakes are most likely to happen. Misclassifying contractors, overlooking minimum wage requirements, or failing to manage fatigue can quickly escalate into compliance breaches and cashflow problems. Farmers need to be proactive not reactive, in managing their workforce,” she notes.

Steph says every employer should remain up to date with legislative changes and updates, including the minimum wage increase to $23.50 per hour for adults (effective April 1, 2025 and a further increase to $23.95 per hour from 1 April 2026); the criminalisation of intentional wage theft; and the reintroduction of 90-day trial periods for all employers.

“Be aware, too, of new protections recently introduced to prevent employers from taking action against employees who discuss their pay,” she adds.

Payroll compliance is critical, with minimum wage risks for contractors a common pitfall and for salaried employees, excessive hours can reduce their effective hourly rate below the legal minimum.

Steph strongly advises a keen eye on always meeting employment tax obligations to avoid penalties.

“Underpaying is against the law, it is probably the fastest way to undermine employee trust and it can quickly create significant liabilities. By the same token, scrupulous attention to tax is a good habit that never goes out of fashion and can prove pivotal in avoiding unexpected cashflow impacts.”

As contractors are commonly called in to meet seasonal demand, she says employers must be clear on the differences between employees and temporary workers. Employees are defined as those taking on work for wages or a salary under an employment agreement, including those employed by an agency but seconded to a rural business. A contractor or self-employed person performs work and is paid for their services, does not have an employment agreement and isn’t covered by most employment-related laws and the Employment Relations Act 2000.

Contractors also cannot bring personal grievances, with general civil law determining most of their rights and responsibilities.

“Knowing the distinction is important because of the different rights and responsibilities of each party in the employment relationship,” says Steph.

Rural work is routinely hazardous, so she stresses the necessity for a thorough and disciplined approach to health and safety compliance.

“Nobody wants worker injuries. Primarily the mission is getting every person home safely, but accidents and incidents also bring disruption at the busiest time of year and can lead to financial and reputational consequences from WorkSafe investigations.”

She notes that health and safety laws apply equally to employees and contractors.

Recent examples in the sector are never far from the headlines and confirm Steph’s view, demonstrating that inadequate planning and oversight can lead to disputes, fines and distraction from already demanding work schedules. By contrast, farms that integrate HR oversight with diligent financial forecasting are better positioned to maintain productivity and safeguard worker wellbeing.

Steph adds “The rural sector is well positioned after a strong performance through 2025. Staying on top of labour management means protecting your people, your cashflow and ultimately your business so you’re ready to tackle 2026 and make the most of what’s shaping up as a promising year.”