What Should Be Included in an Employment Agreement in New Zealand?

An employment agreement is one of the most important documents in the employment relationship. In New Zealand, employers are legally required to provide every employee with a written employment agreement, outlining the terms and conditions of their employment.

A well-drafted agreement protects both the employer and the employee by setting clear expectations, defining responsibilities, and providing a framework for resolving disputes. It also avoids confusion!

Why Employment Agreements Matter

Employment agreements establish the foundation of the employment relationship. They clarify:

• The work the employee will perform

• How and when they will be paid

• Their working hours and location

• The procedures if issues arise

Even if something is not written in the agreement, employees are still entitled to minimum legal employment rights under legislation such as minimum wage and annual leave entitlements.

Legal Requirements for Employment Agreements in New Zealand

1. Names of the employer and employee

2. A description of the work the employee will perform

3. Place of Work

4. Hours of Work

5. Pay rate and how/when an employee will be paid

6. A clear explanation of how to try and resolve employment relationship problems, including details about raising personal grievances

7. Public holiday pay

8. An employment protection provision that applies if the business is sold or transferred, or if the employee’s work is contracted out

Best practice for employers

When offering employment, employers should also:

• Providing the agreement before employment begins

• Giving employees reasonable time to review it

• Encouraging employees to seek independent advice

• Considering any feedback or requested changes.

Taking these steps demonstrates good faith and helps build a strong employment relationship from the outset.

Why Employers Should Get Professional Advice

Poorly drafted agreements can lead to:

• Personal grievance claims

• Employment disputes

• Costly legal proceedings

It's a good idea for an employer to have their agreements professionally drafted or reviewed to ensure compliance with New Zealand employment law.

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