Employment Contracts in New Zealand
Understanding your rights and what to look for before signing
Quick Answer
Every NZ employee must have a written employment agreement. It must include: names of parties, job description, place of work, hours, pay rate, and a problem resolution process. You're entitled to minimum wage ($23.15/hr), 4 weeks annual leave, 10 days sick leave, and 11 public holidays. Always read carefully before signing.
Types of Employment Contracts
Permanent Full-Time
Ongoing employment with guaranteed hours (typically 40/week)
Benefits: Job security, full benefits, career progression
Permanent Part-Time
Ongoing employment with fewer hours than full-time
Benefits: Flexibility, pro-rata benefits, job security
Fixed-Term
Employment for a specific period or project
Benefits: Clear end date, often project-based work
Casual
No guaranteed hours, work as needed
Benefits: Maximum flexibility, often higher hourly rate
Required Contract Clauses
By law, every employment agreement must contain these elements:
Names of Parties
Full legal names of employer and employee
Why it matters: Identifies who is bound by the agreement
Job Description
Description of work to be performed
Why it matters: Clarifies duties and expectations
Place of Work
Where work will be performed
Why it matters: Establishes workplace location(s)
Hours of Work
Agreed working hours and arrangements
Why it matters: Sets expectations for availability
Wages/Salary
Pay rate and payment frequency
Why it matters: Must meet minimum wage requirements
Leave Entitlements
Annual leave, sick leave, public holidays
Why it matters: Minimum 4 weeks annual leave required
Problem Resolution
Process for resolving employment problems
Why it matters: Required by Employment Relations Act
Common Clauses to Watch For
Trial Period
Up to 90 days for employers with fewer than 20 staff
Watch for: Must be agreed before work starts; cannot claim unfair dismissal during trial
Probationary Period
Extended assessment period (different from trial)
Watch for: Fair process still required for dismissal
Restraint of Trade
Limits on working for competitors after leaving
Watch for: Must be reasonable in scope, time, and geography
Confidentiality
Protection of business information
Watch for: Should be reasonable and specific
Intellectual Property
Ownership of work created during employment
Watch for: Understand what IP you're assigning
Termination Notice
Required notice period to end employment
Watch for: Should be fair and equal for both parties
Your Minimum Rights
These rights apply to all employees regardless of what your contract says:
Minimum Wage
Adult minimum wage: $23.15/hour (as of April 2024)
Annual Leave
4 weeks paid leave after 12 months
Sick Leave
10 days per year after 6 months
Public Holidays
11 public holidays (time and a half if worked)
Parental Leave
Up to 26 weeks paid, 52 weeks unpaid
Bereavement Leave
3 days for close family, 1 day for others
Rest Breaks
Paid 10-min breaks and unpaid 30-min meal breaks
KiwiSaver
Employer must offer and contribute 3% minimum
Red Flags in Employment Contracts
Watch out for these warning signs:
Before You Sign
- ✓ Take your time - You have the right to seek advice before signing
- ✓ Read everything - Including any attached policies or schedules
- ✓ Ask questions - Clarify anything you don't understand
- ✓ Negotiate - You can request changes to unreasonable terms
- ✓ Keep a copy - Always retain a signed copy for your records
Need Help Reviewing Your Contract?
An employment lawyer can review your contract and explain your rights before you sign.