employment

Employment contract in New Zealand: Template, Key Clauses and Local Law (2026)

Adira EditorialLegal AI desk6 min read

What the law requires in New Zealand In New Zealand every employee must have a written employment agreement. This is not optional. The Employment Relations Act 2000 is the core statute, and it says an employer must retain a signed copy, or the employer's current signed version if the employee has not signed, and give the employee a copy. An employer who does not have a written agreement can be fined, and the gaps are read against the employer if a dispute arises. Two ideas run through all New Zealand employment law. The first is minimum entitlements that cannot be contracted out of: the minimum wage, four weeks of annual holidays, sick leave, public holidays, parental leave and rest breaks. A contract can offer more than the law, never less. The second is the duty of good faith, which requires the employer and employee to be active and constructive, responsive and communicative with each other, and not to mislead or deceive. Good faith applies to forming, running and ending the relationship. This page is general information, not legal advice. Confirm current figures and rules with Employment New Zealand before you rely on them. ## Minimum terms you cannot contract below - Minimum wage. From 1 April 2026 the adult minimum wage is NZ$23.95 an hour. There are lower starting-out and training rates for specific groups. Any pay rate in a contract must meet the minimum for every hour worked.

  • Annual holidays. Four weeks of paid annual holidays after twelve months of continuous employment, under the Holidays Act 2003.
  • Sick leave. Ten days of paid sick leave after six months.
  • Public holidays, bereavement and family violence leave, and rest and meal breaks are all statutory.
  • KiwiSaver. If the employee is enrolled, the employer pays compulsory employer contributions on top of agreed pay unless a total remuneration approach is clearly agreed. ## An employment agreement template you can adapt ``` INDIVIDUAL EMPLOYMENT AGREEMENT Employer: [company name, NZBN] Employee: [full name] Date: [date] 1. POSITION Job title: [title]. Duties: [description or reference to a position description]. The employee reports to [role]. 2. START DATE AND TYPE Employment begins on [date]. This is [permanent / fixed term]. [For fixed term: it ends on [date / event] for the genuine reason of [reason], as required by law.] 3. TRIAL OR PROBATION [If employer has fewer than 20 employees and a 90-day trial is used: A 90-day trial period applies from the start date under the Employment Relations Act. / Otherwise: A probationary period of [length] applies, during which performance will be reviewed with a fair process.] 4. PLACE OF WORK The employee works at [address] and [any remote or flexible arrangement]. 5. HOURS OF WORK Ordinary hours are [hours] between [days/times]. [Availability and any agreed additional hours, with reasonable compensation if required.] 6. PAY [Rate] per [hour / year], paid [frequency] by direct credit. Pay will always meet the minimum wage for hours worked. 7. HOLIDAYS AND LEAVE Four weeks paid annual holidays a year, plus public holidays, sick leave, bereavement and family violence leave, in line with the Holidays Act 2003. 8. KIWISAVER Compulsory employer contributions apply if the employee is a member, unless a total remuneration arrangement is set out here. 9. CONFIDENTIALITY AND PROPERTY The employee keeps the employer's confidential information private and returns all property on leaving. 10. NOTICE AND TERMINATION Either party may end this agreement with [period] written notice. The employer will follow a fair process and act in good faith. 11. RESTRAINT (IF USED) [Reasonable and limited restraint, with scope, area and time that go no further than needed to protect a genuine interest.] 12. RESOLVING PROBLEMS Problems will be raised in good faith and may go to mediation through Employment New Zealand. Signed: Employer ____________ Employee ____________ Date ______

Frequently asked questions

Does an employment contract have to be in writing in New Zealand?
Yes. Every employee must have a written individual or collective employment agreement, and the employer must keep a signed copy and give the employee a copy. Not having a written agreement can lead to a penalty, and any missing terms tend to be read against the employer. This is general information, not legal advice.
What is the difference between a 90-day trial and a probation period?
A 90-day trial period is only available to employers with fewer than twenty employees, must be agreed in writing before work starts, and limits the employee's ability to bring an unjustified dismissal grievance. A probation period is open to any employer but does not remove the employee's right to a fair process and to challenge a dismissal. They are not interchangeable.
What leave must a New Zealand employment agreement provide?
At least four weeks of paid annual holidays after twelve months, ten days of paid sick leave after six months, public holidays, and bereavement and family violence leave, all under the Holidays Act 2003. A contract can offer more but never less than these minimums.
Are non-compete clauses enforceable in New Zealand?
A restraint of trade is enforceable only so far as it is reasonable to protect a genuine interest such as confidential information or client connection. A clause that goes wider than necessary in time, area or scope can be reduced or set aside by the Employment Relations Authority or the courts.
What is the current minimum wage in New Zealand?
From 1 April 2026 the adult minimum wage is NZ$23.95 an hour, with lower starting-out and training rates for specific groups. Pay must meet the minimum for every hour worked. Check Employment New Zealand for the latest figure before relying on it.
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