Written Contract Of Employment Template for New Zealand

A Written Contract Of Employment is a legally binding document that forms the foundation of every employment relationship in New Zealand. Under the Employment Relations Act 2000, all employers must provide employees with a written employment agreement before work commences, making this one of the most essential business documents you'll need when hiring staff.

When do you need this document?

You must prepare a Written Contract Of Employment whenever you're hiring a new employee, whether for permanent, fixed-term, or casual positions. This includes full-time and part-time workers, apprentices, and trainees. The contract is also required when promoting an existing employee to a new role with different terms, converting a contractor to an employee, or when significantly changing an employee's existing terms and conditions. If you're acquiring a business with existing employees, you'll need to review and potentially update their employment agreements to ensure compliance with your policies and current legislation.

Key legal considerations

Your employment contract must include several mandatory clauses to comply with New Zealand law. These include the employee's name and address, job description and duties, place of work, hours of work, wages or salary details, and leave entitlements. You must also specify the employment type (permanent, fixed-term, or casual) and include provisions for termination notice periods. Consider including clauses covering confidentiality, intellectual property ownership, restraint of trade, and dispute resolution procedures. Be careful with fixed-term agreements, which can only be used for genuine reasons such as covering temporary absence or specific projects. Ensure any restraint clauses are reasonable in scope, duration, and geographic area to be enforceable.

Legal requirements in New Zealand

The Employment Relations Act 2000 requires that employment agreements be in writing and include all terms and conditions of employment. You must comply with minimum wage requirements under the Minimum Wage Act 1983 and ensure leave provisions meet standards set in the Holidays Act 2003. Health and safety obligations under the Health and Safety at Work Act 2015 should be clearly outlined, including employee duties and employer responsibilities. Anti-discrimination provisions must align with the Human Rights Act 1993, and any collection of personal information must comply with the Privacy Act 2020. The contract must be provided in plain language that the employee can understand, and both parties should sign and retain copies. Remember that some terms cannot be contracted out of, such as minimum wage rates and basic leave entitlements.