Creating a compliant employment contract is essential for both employers and employees in New Zealand. Further, in New Zealand, every employee must have a written employment agreement. A well-drafted contract not only protects both parties legally but also sets clear expectations and responsibilities.
HRtoolkit has all the NZ employment contract templates you need, we’ve done the hard work for you, and are continually reviewing them to ensure they remain legally complaint. Which is particularly important at the moment as there are number of employment legislation changes currently being considered.
1. Choose the Type of Employment Agreement
There are several types of employment arrangements in NZ:
- Permanent (Full-time or Part-time) employment agreements
- Fixed-term employment agreement (must state genuine reasons for the term limit)
- Casual employment agreement – only for those who work on and as and when required basis. If working a regular pattern, then consider Part-time or Lower Guaranteed hours agreements
- Lower Guaranteed hours employment agreement – for those who’s hours of work may fluctuate from week to week for reasons such as seasonal demand, weather etc.
Each type requires different provisions. For example, fixed-term agreements must clearly state the reason for the fixed term and the expected end date.
2. Include Mandatory Clauses
The following clauses are legally required in all employment contracts in NZ:
- Names of the employer and employee
- Job title and description
- Place of work
- Agreed hours or an indication of hours
- Wages or salary and how they’ll be paid
- Employment type (permanent, fixed-term, or casual)
- Public holiday pay entitlements
- Agreed rest and meal breaks
- Dispute resolution process
- A statement that services are available to resolve employment relationship problems
3. Ensure Compliance with Minimum Rights
Your contract cannot undercut the minimum rights guaranteed by law, such as:
- The minimum wage
- Annual leave (four weeks per year)
- Sick leave (minimum of 10 days after six months of continuous employment, NB this entitlement is not Pro-rata, so it is 10 days even if someone only works 2 days per week)
- Bereavement leave
- Public holiday entitlements
- Protection against unjustified dismissal
4. Consult and Negotiate
Employment contracts must be negotiated in good faith. Employees should be given a reasonable opportunity to seek independent advice before signing the agreement. This is not just best practice—it’s a legal requirement.
Conclusion
A compliant and well-structured employment contract sets the tone for a healthy employment relationship. It’s not just a legal requirement—it’s a tool to protect your business and support your employees.
If in doubt, HRtoolkit are here to help, just call us on 0800 47 86 65, or visit our website www.hrtoolkit.co.nz for our sample employment agreements NZ complaint.