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Monday, January 27, 2025

What an employment agreement should include

There’s a range of details an employment contract in New Zealand needs to contain. Photo supplied Sebastian Herrmann on Unsplash
  • By Citizens Advice Bureau Pakuranga

An employment agreement is a contract between an employer and an employee and is a record of what’s been agreed to about the employment.

Every employee must have a written employment agreement.

It’s legally binding, which means if one party doesn’t do what they’ve agreed to, the other party can enforce the agreement through a disputes process and the Employment Relations Authority, if necessary.

By law, an employment agreement must cover:

  • the employee’s job title
  • the names of both the employer and the employee
  • a description of the employee’s duties
  • what type of employment agreement it is, for example permanent, fixed term, casual
  • the location of work
  • the employee’s hours of work including guaranteed hours of work and availability clauses (if relevant)
  • how much pay the employee will receive
  • how to resolve any disputes between the employer and the employee
  • entitlements relating to public holidays
  • what will happen to the employee if another business takes over as their employer.

The employment agreement must also have a space for the employer and employee to sign.

The Employment Agreement Builder on business.govt.nz is an online tool for employers to write their employment agreements.

It covers what’s required by law and sets out common mistakes made by employers and how to avoid them.

  • This Solutions Column has been compiled by Vani and is a regular Times editorial from the Pakuranga Citizens Advice Bureau. Email enquiries.pakuranga@cab.org.nz or visit us at the library building, Pakuranga, phone 576 8331, and at Botany Citizens Advice Bureau, rear food court entrance, phone 271 5382, text/call WhatsApp 028 438 2188 or 0800 367 222 for free, confidential and informative help.
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