How to Write an NZ Employment Agreement (ERA 2000)

Every New Zealand employment relationship must be in writing. Section 65 of the Employment Relations Act 2000 prescribes the mandatory content of an Individual Employment Agreement (IEA). Section 63A imposes a pre-signing process — the employer must give the employee a reasonable opportunity to seek independent advice. This guide walks through how to draft a compliant IEA in 2026, covering the eight mandatory clauses, the optional clauses worth including, and the common drafting errors that trigger personal grievances.

Step 1. Confirm the Person Is an Employee

Before drafting, confirm the worker is an employee under Employment Relations Act 2000, s.6. The “real nature of the relationship” test looks at:

• Degree of control by the employer;
• Integration into the employer’s business;
• Whether the worker is in business on their own account.

Mislabelling an employee as a “contractor” does not defeat employee status if the substance is employment. The Supreme Court reinforced this in Uber New Zealand v E Tū Inc (2024). If the substance is employment, draft an IEA — not a contractor agreement.

Step 2. Comply with Section 63A — Pre-Signing Advice

Under Employment Relations Act 2000, s.63A, before the employee signs, the employer must:

1. Provide a copy of the intended agreement in writing;
2. Inform the employee they are entitled to seek independent advice;
3. Allow a reasonable opportunity to seek that advice (typical industry standard: 3–5 working days for ordinary roles; longer for senior roles);
4. Consider any issues the employee raises and respond before signing.

Skipping s.63A is a common ground for personal grievances and invalidates a 90-day trial period clause under s.67A.

Step 3. Include the Eight Mandatory Clauses (s.65(2))

Every IEA must contain the following content (Employment Relations Act 2000, s.65(2)):

1. Names of the employer and the employee

Full legal names. Use the company’s registered name (with company number) and the employee’s full legal name.

2. Description of the work to be performed

A clear job description. Reference an attached job description schedule rather than packing everything into the body of the agreement.

3. Indication of where the employee is to perform the work

Primary work location, plus any travel or remote-work expectations.

4. Hours of work

Under s.65(2)(d) and s.67C, the agreement must record either:

• Specific agreed hours (number, days, start/finish times); or
• An indication of the arrangements relating to the times the employee is to work.

If hours are genuinely variable, record the agreed pattern and how variations work. Zero-hour contracts were prohibited by the 2016 amendments — agreements must specify hours or include a compliant availability provision under s.67D with reasonable compensation for the requirement to be available.

5. Wages or salary payable

The amount and frequency of payment. The pay must equal or exceed:

• The applicable modern minimum wage under the Minimum Wage Order 2026 (NZ$23.95 adult / NZ$19.16 starting-out and training from 1 April 2026); and
• Any applicable collective agreement coverage.

6. Plain-language explanation of dispute-resolution services

Section 65(2)(f) requires explanation of:

• The 12-month period to raise sexual harassment grievances (s.114(1) re s.103(1)(d));
• The 90-day period for any other personal grievance (s.114(1));
• The Mediation Services available free of charge from Employment New Zealand;
• The Employment Relations Authority and its first-instance jurisdiction.

A specific paragraph addressing both the 12-month and 90-day windows is now the industry standard following the s.114 amendments.

7. Time-and-a-half (or alternative holiday) for working a public holiday

Under Holidays Act 2003, s.50, if the employee works on a public holiday that they would otherwise have worked, they receive time-and-a-half for time worked and an alternative holiday (day in lieu) under s.56.

The IEA must reference these entitlements.

8. Employee protection provision (in case of restructuring)

Under s.65(2)(g), the IEA must include an employee protection provision addressing what happens if the employer’s business is restructured (e.g. transfer to a new owner). This is mandatory unless the employee is a “vulnerable employee” under Part 6A of the Act.

The provision typically requires the employer to negotiate with the new employer in good faith for the transfer of the employee’s role.

Step 4. Include Optional but Recommended Clauses

90-day trial period (s.67A) — if applicable

If using a trial period, the clause must:

• Be in writing in the IEA;
• Be signed before commencement;
• Apply only to an employee not previously employed by the employer;
• Specify a period not exceeding 90 days;
• Comply with s.63A advice opportunity.

A valid trial period under s.67A blocks personal grievances for unjustified dismissal during the period (s.67B), but does not displace other grievance rights.

Probationary period (s.67) — if applicable

Different from a trial period. A probationary period under s.67 does not block personal grievances — the employer must still meet the s.103A “fair and reasonable employer” test if dismissing during probation. Probation signals heightened scrutiny of fit.

Notice of termination

Notice required to end the employment. The IEA may specify a notice period (typical 2–4 weeks); the Act does not specify a statutory minimum, but “reasonable notice” is implied where the contract is silent. Public servants and certain regulated occupations have specific minimum notice periods.

Restraint of trade / non-compete

Under common law (and reflecting Contract and Commercial Law Act 2017, s.83), restraints of trade are enforceable only to the extent reasonably necessary to protect a legitimate business interest. A 12-month NZ-wide ban on a senior salesperson with established customer relationships may be enforceable; the same clause for a junior administrator probably is not.

Geographic scope, duration, and breadth of activity restricted are scrutinised. The court has power to modify unreasonable restraints — the previous Illegal Contracts Act 1970, s.8 mechanism (now in the Contract and Commercial Law Act 2017).

Confidentiality and IP assignment

Standard clauses for protection of trade secrets and assignment of work-product intellectual property to the employer.

Drug and alcohol testing (if relevant)

For safety-sensitive roles. Must comply with the Privacy Act 2020 and reasonable employer-rights principles.

Suspension and disciplinary procedure

Reference to the employer’s policies.

KiwiSaver

Reference to the employee’s KiwiSaver contribution, opt-out window (14–56 days from start), and the employer’s default 3% contribution under the KiwiSaver Act 2006.

Step 5. Sign Before Employment Starts

The IEA must be signed before the first day of work. For a 90-day trial period to be valid (s.67A(2)(a)), this is non-negotiable. For ordinary IEAs, signing on day one or day two creates evidentiary uncertainty about what was agreed and exposes the employer to s.65 contravention claims.

Best practice: complete signing at least one day before the agreed start date, with date stamps and (if possible) a witness.

Step 6. Provide the Day-One Documents

Alongside the signed IEA:

• KiwiSaver KS3 information pack (KiwiSaver Act 2006);
• IR330 Tax Code Declaration (Income Tax Act 2007 / Tax Administration Act 1994);
• Health & safety induction record (Health and Safety at Work Act 2015, s.36);
• Job description (referenced by the IEA);
• Privacy collection notice (Privacy Act 2020 IPP3).

Step 7. Maintain Records for 7 Years

Under Employment Relations Act 2000, s.130 and Holidays Act 2003, s.81, the employer must keep wage and time records for 7 years and produce them on demand to a Labour Inspector. Records include:

• Hours worked each pay period;
• Wages paid each pay period;
• Annual leave taken and remaining;
• Public holidays worked and alternative holidays accrued / taken;
• Sick and bereavement leave taken.

Common Drafting Errors

Conclusion

A compliant NZ Individual Employment Agreement combines the eight s.65(2) mandatory clauses with the s.63A pre-signing advice process, the 90-day trial period option under s.67A (for new hires), and the day-one onboarding documents (KiwiSaver, IR330, H&S induction, privacy notice). Records must be kept for 7 years. The Employment New Zealand portal at https://www.employment.govt.nz/ holds template and guidance materials. The discipline that prevents personal grievances is to draft, send, allow advice time, sign before start — and only then begin work.

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Disclaimer

Legal information, not legal advice. MmowW Scrib🐮 is operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not solicitors, barristers, or lawyers.

Sources

• Employment Relations Act 2000: https://www.legislation.govt.nz/act/public/2000/24/en/latest/
• ERA s.65 (Form and content of IEA): https://www.legislation.govt.nz/act/public/2000/0024/latest/DLM59157.html
• Employment New Zealand: https://www.employment.govt.nz/
• Holidays Act 2003: https://www.legislation.govt.nz/act/public/2003/0129/latest/whole.html
• Inland Revenue — Employing staff: https://www.ird.govt.nz/employing-staff