Limited Term Contract for New Zealand

Limited Term Contract Template for New Zealand

A Limited Term Contract is a specialized employment agreement governed by New Zealand employment law, particularly the Employment Relations Act 2000. This document establishes a fixed-term employment relationship between an employer and employee, clearly stating the duration of employment, genuine reasons for the fixed term, and specific termination date. The agreement includes comprehensive terms and conditions of employment, including remuneration, duties, hours of work, and leave entitlements, while ensuring compliance with New Zealand's employment legislation, including requirements for holiday pay, minimum wage, and health and safety obligations.

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What is a Limited Term Contract?

The Limited Term Contract is essential for organizations in New Zealand requiring temporary or project-based employment arrangements. It is specifically designed to comply with New Zealand employment law, which requires employers to have genuine reasons based on reasonable grounds for using a fixed-term agreement. This document is typically used for seasonal work, project-based assignments, coverage for parental leave, or other temporary staffing needs. The contract must explicitly state the duration of employment, reasons for the fixed term, and how the employment will end. It includes all standard employment terms required by New Zealand law while addressing the specific nature of fixed-term employment. This agreement is particularly relevant in industries with cyclical work patterns or project-based operations, ensuring both employer and employee have clear understanding of the temporary nature of the engagement while maintaining compliance with local employment regulations.

What sections should be included in a Limited Term Contract?

1. Parties: Identifies the employer and employee with their full legal names and addresses

2. Background: Establishes context and confirms the employer's offer and employee's acceptance of employment

3. Definitions: Defines key terms used throughout the agreement

4. Nature of Agreement: Specifies this is a fixed-term agreement and states the genuine reasons for the fixed term as required by NZ law

5. Duration: Clearly states the start and end dates of the fixed-term employment and the circumstances of termination

6. Role and Duties: Details the employee's position, reporting relationships, and key responsibilities

7. Location of Work: Specifies the primary workplace location and any flexibility arrangements

8. Hours of Work: Details standard working hours, breaks, and overtime arrangements if applicable

9. Remuneration: Specifies salary/wages, payment frequency, and any additional benefits

10. Leave Entitlements: Details annual leave, sick leave, bereavement leave and public holiday entitlements as per NZ law

11. Health and Safety: Outlines health and safety obligations and responsibilities

12. Confidentiality: Defines confidential information and employee's obligations regarding confidentiality

13. Termination: Specifies notice periods and grounds for early termination

14. General Provisions: Includes standard contractual clauses like entire agreement, governing law, and amendments

What sections are optional to include in a Limited Term Contract?

1. Probationary Period: Optional trial period clause, only for use if specifically required and when legally permissible

2. Flexibility and Remote Work: Detailed remote working arrangements, used when role involves regular remote work

3. Intellectual Property: IP creation and ownership clauses, important for creative or technical roles

4. Post-Employment Restrictions: Non-compete and non-solicitation clauses, used for senior or client-facing roles

5. Commission Structure: Details of commission calculations and payments, for sales or commission-based roles

6. Vehicle Provision: Terms for company vehicle use, if applicable to the role

7. Training Requirements: Specific training obligations and commitments, for roles requiring certifications

8. Bonus Scheme: Performance bonus structure and conditions, for roles with bonus arrangements

What schedules should be included in a Limited Term Contract?

1. Schedule 1 - Position Description: Detailed description of the role, responsibilities, and performance expectations

2. Schedule 2 - Remuneration Details: Comprehensive breakdown of salary package, benefits, and any allowances

3. Schedule 3 - Company Policies: List of applicable company policies that form part of the employment terms

4. Schedule 4 - IT and Communications Systems: Specific rules regarding use of company IT systems and communication tools

5. Appendix A - Genuine Reasons Declaration: Detailed explanation of the genuine reasons for the fixed term as required by NZ law

6. Appendix B - Health and Safety Guidelines: Specific health and safety requirements and procedures for the role

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Clauses
Relevant Industries

Construction

Information Technology

Education

Healthcare

Media and Entertainment

Agriculture

Professional Services

Retail

Manufacturing

Tourism and Hospitality

Research and Development

Mining and Resources

Film and Television

Sports and Recreation

Non-Profit Organizations

Relevant Teams

Human Resources

Legal

Finance

Operations

Project Management Office

Research and Development

Production

Administration

Academic Affairs

Seasonal Operations

Recruitment

Compliance

Employee Relations

Workforce Planning

Relevant Roles

Project Manager

Seasonal Worker

Contract Teacher

Temporary Administrator

Research Assistant

Interim Executive

Film Crew Member

Construction Worker

Software Developer (Contract)

Maternity Leave Cover

Graduate Intern

Holiday Program Coordinator

Festival Event Manager

Harvest Worker

Contract Nurse

Acting Department Head

Fixed-term Lecturer

Production Assistant

Sports Coach (Seasonal)

Relief Worker

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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