Employment contracts New Zealand

What should an employment contract in New Zealand include?

Below is a list of the general elements contained in every employment contract in New Zealand: 

• Both parties’ personal information, including names and contact details. 
• Job role information, including a description of responsibilities, duties, and rights. 
• Payschedule and compensation structure, including salaries, wages, and benefits entitlements. 
• The days and the hours of the week when the employee should work. 
• Confidentiality and non-disclosure policies.
• Termination of employment policies, including notice periods and applicable severance pay. 

It’s important that both the employer and the employee read and understand the employment terms before providing their signatures. 

What types of employment contracts exist in New Zealand?

The following are the most commonly used employment contracts in New Zealand:

1. Employee contracts

In New Zealand, employee contracts can be divided into 2 major categories:

• Permanent employment contracts: Permanent employment contracts’ duration is indefinite until one of the parties of the agreement terminates it. Under this type of contract, employees are entitled to benefits such as social security, pension, annual leave, sick leave, and others. All the employment benefits, terms, and conditions of employment must be defined within the contract.
• Fixed-term employment contracts: As opposed to permanent contracts, fixed-term employment contracts have a pre-determined duration with clearly defined start and end dates. Fixed-term contracts are typically used to cover workforce shortages, and the employer must provide a valid reason for employing individuals on a temporary basis. 

2. Casual employment contracts

Casual employment contracts are also used for temporary employment, and the employees are not guaranteed regular work. Under this agreement, employees receive an hourly wage (typically higher than regular employees’ rate), excluding the benefits of permanent employment. 

3. Independent contractor agreements

Independent contractor agreements are used to regulate the employment relationship between a business or an employer and self-employed individuals, freelancers, or contractors who provide services. These agreements don’t classify individuals as regular employees, but they define all the terms of the arrangement, including payment terms, scope of work, responsibilities, and others. 

How to hire employees in New Zealand? 

For businesses aiming to hire staff in New Zealand, a thorough understanding and compliance with local labour laws is essential. Such regulations cover various aspects of employment, including minimum wages, working hours, salaries, termination of employment, and others.

In addition to this, employers are also obligated to have a legal establishment, a tax identification number, and a local bank account before hiring anyone from New Zealand. 

To streamline the process of recruiting workers in New Zealand, employers can utilise global expansion companies like Native Teams. Thanks to our employer of record solutions, you can have your payroll, taxes, and HR administration compliantly handled so that you can stay 100% focused on the growth of your business.