To keep a fair and decent working environment and enhance productivity, employees and employers need to know their rights and responsibilities and how to exercise them.

The Employment Relations Act 2012 provides the minimum terms and conditions of the employment relations. However, each business should ensure they are building upon those minimum terms and conditions by having internal policies and manuals to guide their staff on the different expectations of their workplace. To know more about other national legislation that might apply to your workplace, refer to Tools and Resources. 

Minimum terms and conditions as per the Employment Relations Act 2012 are :

  1. Minimum Wage
  2. Salaried or Wage earner
  3. Overtime
  4. Rest and meal breaks
  5. Payment of wages
  6. Wage protection
  7. Leave entitlements

Minimum terms and conditions as stipulated by the Act only indicates the minimum thresholds that need to be respected. The employer and employee may discuss and agree to any entitlements above this threshold during the negotiation of their employment agreement and/or as part of their staff manual.

1.Minimum Wage

The universal minimum wage for the Cook Islands is reviewed annually. The current Minimum Wage in force since the 1st July 2020 is NZD 8.00 / hour.

2. Salaried or Wage earner

Employees are either salaried or wage earners.

What is the difference between salary and wage?

A salary is a fixed amount payable at regular intervals, it can be weekly or monthly payments straight to an employee’s bank account.

Wages are hourly or daily payments for work done during the working day.

The main difference between salary and hourly wage is that salaries are fixed hours of work and rate agreed to by both the employer and employee. Wages, on the other hand, may vary depending on hours worked and performance.

In either case, wages or salary should not be below the minimum wage for every hour worked. Employees can divide their pay by the number of hours they work to ensure that they are above minimum wage.

3. Overtime

Overtime is an entitlement for wage earners only. Salaried earners have fixed hours of work and rate of pay which limits possibilities for overtime.

Any hours above 40 hours weekly should be paid as overtime, at 1.5 rate.

Overtime payment should be indicated as such on the payslip.

4. Rest and meal breaks

All employees are entitled to rest and meal breaks.

A paid rest break of no less than 10 minutes is due after 3 hours of work.

A meal break is due after 5 hours of work, including the rest break. Whether the lunch break is paid or unpaid, should be clarified in the contract and/ or the staff manual.

5. Payment of wages/salary

An employer must pay the employee in form of money and not in any other form.

Payment must be done as soon as the wages or salary are due and as per the employment agreement.

Payment must be accompanied by a written payslip indicating at a minimum :

  • Days and hours worked.
  • Gross amount of wages
  • Any deductions made
  • Net amount of wages payable.

6.Wage protection

An employer must not deduct money from an employee’s pay except if deductions are for CINSF/ PAYE  or agreed upon with the employee or as ordered by Court.

7.Leave entitlements

During employment, there may be days where the employee is absent from work. Such days may be covered by the following forms of leaves, depending on the reasons for the absence.

7.1 Annual Leave

A full time employee is entitled to 10 working days annual leave, paid at the employee’s rate of pay, for each 12 month period of employment (inclusive of paid leave)

A part time employee is entitled to a number of annual leaves in proportion to the number of hours worked, based on the full time entitlement for each 12 month period of employment (inclusive of paid leave).

Leaves accrue from the first day of work, but employers may ask their employees to work up to maximum 6 months before taking their first leave. This must be written clearly in either the employment agreement and/or in the staff manual.

All leaves must be taken in consultation and agreement between the employer and the employee. It is strongly recommended that policies and inductions be made available to the staff to facilitate the process of leave taking.

Annual leaves is taken for rest and relaxation.

At the time of termination, all outstanding annual leaves need to be paid out.

Conditions for annual leave roll over after each 12 month period is determined by each employer and should be clearly indicated in the contract and/or the staff manual.

These are minimal requirements, the employer and employee may discuss and agree to any entitlements above this threshold.

7.2 Sick Leave

A full time employee is entitled to 5 working days sick leave, paid at the employee’s rate of pay, for each 12 month period of employment (inclusive of paid leave).

A part time employee is entitled to a number of sick leaves in proportion to the number of hours worked, based on the full time entitlement for each 12 month period of employment (inclusive of paid leave).

Leaves accrue from the first day of work, but employers may ask their employees to work up to maximum 6 months before taking their first leave. This must be written clearly in either the employment agreement and/or in the staff manual.

All leaves must be taken in consultation and agreement between the employer and the employee and as soon as possible. An employer may request that a medical certificate be submitted. It is strongly recommended that policies and inductions be made available to the staff to facilitate the process of leave taking.

Sick leave is taken if the employee is unable to work due to a sickness or an injury. Employers may extend sick leave application to situations where a dependent of the employee is sick or injured, but this needs to be clearly written in the contract and/or the staff manual.

At the time of termination, all outstanding sick leaves do not need to be paid out.

Conditions for sick leave roll over after each 12 month period is determined by each employer and should be clearly indicated in the contract and/or the staff manual.

These are minimal requirements, the employer and employee may discuss and agree to any entitlements above this threshold.

7.3 Maternity Leave

An employee, who is pregnant, other than a casual employee, is entitled to 6 weeks maternity leave. Leave can be taken as early as from 2 weeks prior to expected delivery and no later than the date of the birth.

The employee is entitled to return to her same position or one equivalent at the end of her maternity leave.

The employer may request the submission of a medical certificate confirming the pregnancy and the delivery date.

The conditions of payment of the maternity leave need to be clearly written and agreed upon in the contract and/or in the staff manual.

7.3.1 Payment of the Government Funded Maternity Leave Pay

Payment of maternity leave during the 6 weeks needs to be clearly written and agreed upon in the contract and /or in the staff manual.

In addition to this agreement, it is possible for the employer to seek support from the Government fund for pregnant employees who are Cook Islanders or Permanent residence holders. Application must be made one month prior to the due date. Gross payment will be made to the employer at the minimum wage rate for 40 hours weekly for 6 weeks. The employer has to process the gross payment and pay the employee the net amount together with a payslip.

This fund will not cover payment of maternity leave for foreign workers, public service employees and casual workers.

Foreign workers who fall pregnant during their employment in the Cook Islands have to discuss with their employer as soon as they discover their pregnancy. Payment of their maternity leave must be paid for by their employer, at no less than the minimum wage, for the six weeks.

Public service employees should refer directly to the OPSC policies and website in regards to their maternity leave entitlements.

7.4 Paternity Leave

An employee, other than a casual employee, who is the spouse of a person who gives birth, is entitled to 2 working days paid leave and 3 working days unpaid leave in the 6 weeks following the birth.

7.5 Public Holiday

All statutory public holidays as observed in the Cook Islands are declared by the Public Holidays Act 1999.

An employee, other than a casual, is entitled to a public holiday with pay, at their ordinary rate of pay, if it falls on a day which would normally be a working day for the employee.

If an employee, including a casual employee, is required to work on a public holiday, they are entitled to double their rate of pay or an extra annual leave day or time off in lieu or any other reasonable arrangement that is not less favorable than the above.

7.6 Other Leaves

Any other leaves made available to the employees need to be clearly described in the contract and/or the staff manual, including the conditions of applicability and eligibility.