Indefinite Contract Template for New Zealand

An indefinite contract is the most common form of employment agreement in New Zealand, establishing a permanent working relationship between employer and employee without specifying an end date. Unlike fixed-term contracts, these agreements continue until either party decides to terminate the employment relationship according to legal requirements. This type of contract provides job security for employees while giving employers flexibility to maintain their workforce for ongoing business needs.

When do you need this document?

You need an indefinite employment contract when hiring permanent staff for ongoing roles that don't have a predetermined end date. This includes situations such as hiring full-time or part-time employees for core business functions, bringing on new team members for established positions, or converting contractors to permanent employees. The contract is also necessary when promoting existing staff to new permanent positions or when restructuring employment arrangements from casual to permanent status. Any employer in New Zealand offering ongoing employment must provide a written employment agreement within the first month of employment, making this document legally required for permanent hires.

Key legal considerations

Your indefinite employment contract must include several mandatory clauses under New Zealand law, including the names and addresses of both parties, a description of the work to be performed, the location of work, and agreed hours or indication of work arrangements. The contract must specify remuneration details, leave entitlements according to the Holidays Act 2003, and procedures for resolving employment relationship problems. You must also include termination provisions that comply with statutory notice periods and specify any probationary period arrangements. The agreement should address confidentiality requirements, intellectual property ownership, and restraint of trade clauses if applicable. Both parties must act in good faith throughout the employment relationship, which includes during contract negotiations and ongoing employment matters.

Legal requirements in New Zealand

Under the Employment Relations Act 2000, you must provide a written employment agreement before or as soon as possible after employment begins, but no later than one month after starting work. The contract must comply with minimum wage requirements under current employment standards and include statutory leave entitlements covering annual holidays, sick leave, bereavement leave, and public holidays as outlined in the Holidays Act 2003. You must ensure the agreement doesn't discriminate against employees based on protected characteristics under the Human Rights Act 1993, and includes health and safety obligations as required by the Health and Safety at Work Act 2015. The contract should also address privacy obligations under the Privacy Act 2020 regarding employee personal information. Any variations to the employment agreement must be agreed upon by both parties and documented in writing.