Casual Employment Agreement (New Zealand)
Employment Relations Act 2000 (ERA) — Casual Engagement with Casual Holiday Pay
This Casual Employment Agreement (the “Agreement”) is made under the Employment Relations Act 2000 (ERA) between:
[Employer Name] (NZBN: [Employer NZBN]), of [Employer Address], [Employer City], [Employer Region] [Employer Postcode] (the “Employer”); and
[Employee Name], of [Employee Address], [Employee City], [Employee Region] (the “Employee”).
Together referred to as the “Parties”.
1. GOOD FAITH
1.1 The Parties acknowledge and agree that they owe each other the duty of good faith as set out in section 4 of the Employment Relations Act 2000. This duty requires the Parties to be active and constructive in establishing and maintaining a productive employment relationship, and to be responsive, communicative, and not deceptive or misleading.
2. NATURE OF CASUAL EMPLOYMENT
2.1 The Employee is engaged as a casual employee of the Employer. The Employee’s first engagement under this Agreement is on [Engagement Date].
2.2 The casual employment relationship is characterised by the absence of a firm advance commitment to continuing and indefinite work. The Employer makes no guarantee of ongoing work, minimum hours, or a regular pattern of work. The Employee will be engaged only when work is available and when the Employer chooses to offer, and the Employee chooses to accept, a shift or engagement.
2.3 As a casual employee, the Employee is not a permanent employee and does not have the same entitlements as a permanent (full-time or part-time) employee. In particular, the Employee does not accrue paid annual leave in the same way as a permanent employee. Instead, the Employee receives holiday pay as an additional percentage on each pay, as described in clause 5 of this Agreement.
2.4 This Agreement is an Individual Employment Agreement for the purposes of Part 6 of the Employment Relations Act 2000.
3. POSITION AND DUTIES
3.1 The Employee is engaged in the role of [Job Title].
3.2 The Employee’s primary place of work is [Place Of Work]. The Employer may direct the Employee to perform work at different locations on different engagements.
3.3 The Employee’s duties include:
[Duties Summary]
3.4 The Employer may vary the Employee’s duties from engagement to engagement as required by the business.
4. HOURS OF WORK AND ROSTERING
4.1 The Employee has no guaranteed hours of work. Work is offered on an engagement-by-engagement basis, and the Employee is under no obligation to accept any particular shift or engagement.
4.2 When a shift is offered and accepted, the minimum period of engagement per shift is [Minimum Engagement Per Shift].
4.3 Shifts will be communicated to the Employee as follows: [Shift Offer Process].
4.4 The Employee must promptly advise the Employer if they are unable to attend a scheduled shift. The Employer reserves the right not to offer future engagements to an Employee who repeatedly fails to attend or cancels shifts at short notice without reasonable cause.
4.5 Rest and meal breaks: When performing a shift, the Employee is entitled to rest breaks and meal breaks in accordance with the Employment Relations Act 2000.
5. REMUNERATION AND HOLIDAY PAY
5.1 The Employer will pay the Employee at the rate of [Hourly Rate] for all ordinary hours worked.
5.2 This rate meets or exceeds the adult minimum wage as set under the Minimum Wage Act 1983 and the Minimum Wage Order in force at the date of this Agreement.
5.3 In lieu of accruing paid annual leave, the Employee will receive holiday pay at the rate of [Holiday Pay Rate], paid on each pay in accordance with section 28(3) of the Holidays Act 2003. This payment represents the Employee’s entitlement to annual leave and is added to each pay rather than being available for future use.
5.4 Payment is made [Pay Frequency] in arrears by direct credit to the Employee’s nominated bank account. The Employer will deduct PAYE income tax and any other required statutory deductions (including KiwiSaver contributions where applicable) in accordance with applicable New Zealand taxation legislation.
5.5 The Employer will provide the Employee with a payslip for each pay period showing gross pay, deductions made, holiday pay component, and net pay.
6. KIWISAVER
6.1 If the Employee is a member of KiwiSaver, the Employer will make compulsory employer contributions at the rate of [KiwiSaver Rate] of the Employee’s gross wages (excluding the holiday pay component), in accordance with the KiwiSaver Act 2006.
6.2 The minimum employer contribution rate is 3% of the Employee’s gross wages. Employee contributions will be deducted from gross pay at the rate elected by the Employee (3%, 4%, 6%, 8%, or 10%).
6.3 New employees aged 18 to 64 who are NZ citizens or permanent residents will be automatically enrolled in KiwiSaver in accordance with the KiwiSaver Act 2006, unless the Employee is already a member or opts out within the prescribed period.
7. LEAVE ENTITLEMENTS
7.1 Annual Leave: As a casual employee, the Employee does not accrue paid annual leave in the same way as a permanent employee. Instead, the Employee receives holiday pay as an additional percentage on each pay (clause 5.3 above), calculated in accordance with section 28(3) of the Holidays Act 2003.
7.2 Sick Leave: After 6 months of continuous or regular and systematic employment, the Employee may become entitled to paid sick leave of 10 days per year under section 65 of the Holidays Act 2003, depending on the nature of the employment relationship. If the Employee works regularly and systematically such that the employment is ongoing in nature, sick leave entitlements will apply.
7.3 Bereavement Leave: Casual employees are entitled to bereavement leave in accordance with sections 69 and 70 of the Holidays Act 2003 if, at the time of bereavement, the employment relationship can be regarded as ongoing.
7.4 Public Holidays: If the Employee is required to work on a public holiday on a day that would otherwise be a working day for the Employee, the Employee is entitled to time-and-a-half for the hours worked and an alternative holiday. The assessment of whether a public holiday would otherwise be a working day is made by reference to the Employee’s pattern of engagements.
7.5 ACC Coverage: The Employee is covered by the Accident Compensation Act 2001 for personal injury by accident, including work-related injuries, from the date of first engagement.
8. TERMINATION OF ENGAGEMENT
8.1 Either party may end an individual casual engagement at the end of each shift without notice or payment in lieu of notice.
8.2 The Employer may end the overall casual employment arrangement by giving the Employee reasonable written notice that no further shifts will be offered.
8.3 The Employee retains access to the personal grievance process under the Employment Relations Act 2000. If the Employee believes the overall engagement has been terminated in breach of the good faith obligations or on discriminatory or other unlawful grounds, the Employee may raise a personal grievance within 90 days of the date on which the alleged action occurred (section 114 ERA).
9. GENERAL PROVISIONS
9.1 Workplace Policies: When engaged, the Employee must comply with all reasonable workplace policies, procedures, and codes of conduct of the Employer in force from time to time.
9.2 Health and Safety: The Employer is a Person Conducting a Business or Undertaking (PCBU) under the Health and Safety at Work Act 2015 (HSWA) and has a primary duty to ensure the health and safety of workers while at work. The Employee must take reasonable care for their own health and safety and comply with all reasonable health and safety instructions.
9.3 Confidentiality: The Employee must not disclose any confidential information belonging to the Employer to any third party without the Employer’s consent, during or after any period of engagement.
9.4 Privacy: The Employer will handle the Employee’s personal information in accordance with the Privacy Act 2020 and the Information Privacy Principles.
9.5 Variation: Any variation to the terms of this Agreement must be agreed in writing by both Parties.
9.6 Governing Law: This Agreement is governed by the laws of New Zealand, including the Employment Relations Act 2000, the Holidays Act 2003, the Health and Safety at Work Act 2015, the KiwiSaver Act 2006, and the Accident Compensation Act 2001. The Parties submit to the jurisdiction of the Employment Relations Authority and the courts of New Zealand sitting in [Governing Region].
IN WITNESS WHEREOF, the Parties have executed this Casual Employment Agreement on the date last signed below.
SIGNED for and on behalf of the EMPLOYER:
Employer: [Employer Name]
NZBN: [Employer NZBN]
Address: [Employer Address], [Employer City], [Employer Region] [Employer Postcode]
SIGNED by the EMPLOYEE:
Employee: [Employee Name]
Address: [Employee Address], [Employee City], [Employee Region]
Employer
________________
Signature
Employee
________________
Signature
What Is a Casual Employment Agreement (New Zealand)?
A Casual Employment Agreement in New Zealand sets out the duties, hours, pay, leave, and termination terms between employer and employee, consistent with the minimum entitlements guaranteed by the Employment Relations Act 2000. It defines duties, remuneration, working hours, leave, and termination procedures binding employer and employee.
Casual employment is widely used in New Zealand across retail, hospitality, healthcare, aged care, tourism, agriculture, events, construction, and education. In each of these industries, seasonal peaks, variable demand, or unpredictable staffing needs make it impractical for employers to offer guaranteed hours. Casual employment provides flexibility for both employers and employees who do not want a fixed commitment to regular hours.
The key distinguishing feature of a genuine casual employment relationship in New Zealand is the absence of a firm advance commitment to continuing and indefinite work. A casual employee is offered a shift, and they can accept or decline. Neither party has an obligation to offer or accept any particular shift. This is in contrast to a part-time employee, who has guaranteed minimum hours and a regular pattern of work that the employer must provide and the employee must work.
The Holidays Act 2003 permits casual employees to be paid holiday pay as an additional 8% of gross earnings on each pay, in lieu of accruing paid annual leave. This arrangement is recognised by section 28(3) of the Holidays Act 2003 as appropriate for genuine casual and irregular employment. Employers must confirm the 8% is clearly itemised on payslips and is calculated on total gross earnings. KiwiSaver obligations under the KiwiSaver Act 2006 and ACC coverage under the Accident Compensation Act 2001 apply to casual employees in the same way as to permanent employees.
When Do You Need a Casual Employment Agreement (New Zealand)?
A written Casual Employment Agreement is needed whenever an employer engages a worker in New Zealand on a genuinely casual basis — that is, where there is no commitment to ongoing, indefinite work and no guaranteed hours or regular work pattern. Despite the informal nature of casual employment, the ERA requires a written employment agreement for all employees, including casual employees. The absence of a written agreement can expose the employer to significant risk.
First, without a written agreement, there is no documented record of the terms on which the casual employment was offered and accepted. In a dispute before the Employment Relations Authority, the employer may struggle to establish that the arrangement was genuinely casual rather than permanent, particularly if the worker has been engaged regularly over an extended period. Courts and the ERA will look at the practical reality of the working relationship, and a worker who has worked the same days and hours each week for months may successfully argue that the relationship had become permanent, entitling them to paid annual leave and other permanent employee benefits.
Second, a written agreement clearly documents the holiday pay arrangement — 8% of gross earnings on each pay — and confirms the employee understands how their annual leave entitlement is being met. Failure to pay holiday pay correctly is a common compliance failure and can result in enforcement action by the Ministry of Business, Innovation and Employment.
Casual Employment Agreements are most commonly used in hospitality, retail, healthcare and aged care, childcare, events, tourism, agriculture, construction, and other industries with variable, seasonal, or event-driven staffing needs. They are also used in situations where the employer cannot commit to regular hours due to funding constraints or operational uncertainty, such as community organisations, charities, or businesses with highly seasonal revenue.
What to Include in Your Casual Employment Agreement (New Zealand)
A legally compliant Casual Employment Agreement for New Zealand must address several key provisions.
The nature of the engagement clause is the foundational provision. It must clearly state that the employment is casual — characterised by the absence of a firm advance commitment to continuing and indefinite work — and that no guarantee of ongoing employment, minimum hours, or a regular pattern of work is provided. The clause should distinguish the casual arrangement from permanent part-time employment and explain the implications for leave entitlements.
The holiday pay clause must specify that the employee receives 8% of gross earnings on each pay in lieu of accrued annual leave, as permitted by section 28(3) of the Holidays Act 2003. The clause should confirm that this rate represents the employee's annual leave entitlement and should be separately itemised on each payslip. The 8% must be calculated on total gross earnings, including overtime and allowances.
The minimum engagement per shift provision should specify the minimum hours the employee will be paid if called in for a shift. A minimum of 2 to 3 hours per shift is common practice in New Zealand and provides a degree of certainty for casual workers about minimum income from each engagement.
The public holiday clause must address the employee's entitlement to public holiday benefits, which depends on whether the holiday falls on a day that would 'otherwise be a working day' for the employee under section 12 of the Holidays Act 2003. This assessment is made by reference to the employee's pattern of engagements.
The KiwiSaver clause must confirm the employer's obligation to make compulsory contributions of at least 3% of the employee's gross wages (excluding holiday pay) for enrolled employees. The good faith clause must acknowledge the duty of good faith under section 4 of the ERA, which applies to casual employment relationships in New Zealand. The ACC coverage clause should explain the employee's entitlement under the Accident Compensation Act 2001. The forms-legal.com Casual Employment Agreement (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Casual Employment Agreement (New Zealand) (New Zealand) [Legal document template]. Forms Legal. https://forms-legal.com/new-zealand/employment/contracts/employment-agreement-casual-new-zealand
"Casual Employment Agreement (New Zealand) (New Zealand)." Forms Legal, 2026, https://forms-legal.com/new-zealand/employment/contracts/employment-agreement-casual-new-zealand.
@misc{formslegal-employment-agreement-casual-new-zealand,
author = {{Forms Legal}},
title = {Casual Employment Agreement (New Zealand) (New Zealand)},
year = {2026},
howpublished = {\url{https://forms-legal.com/new-zealand/employment/contracts/employment-agreement-casual-new-zealand}},
note = {Free legal document template. Based on Employment Relations Act 2000}
}
Frequently Asked Questions
New Zealand law does not contain a statutory definition of 'casual employee' in the Employment Relations Act 2000, unlike Australia's Fair Work Act 2009. Instead, the courts and the Employment Relations Authority assess the true nature of the employment relationship by looking at the practical reality of how the parties work together, not merely at what the contract says. The key characteristics of genuine casual employment in New Zealand are: no guaranteed hours; no regular or predictable pattern of work; engagement on an as-needed, shift-by-shift basis; and no firm advance commitment to continuing and indefinite work. A casual employee is offered work when it is available and may accept or decline each offer. If a worker is engaged casually but consistently works the same days and hours every week over a prolonged period, the Employment Relations Authority may find that the relationship has the characteristics of permanent employment, entitling the worker to paid annual leave and other permanent employee benefits. This is why it is important for employers to use genuine casual arrangements only where the work is genuinely irregular and unpredictable.
Under the Holidays Act 2003, casual employees in New Zealand are typically paid holiday pay as an additional 8% of their gross earnings on each pay, rather than accruing paid annual leave that can be taken later. This is permitted by section 28(3) of the Holidays Act 2003, which allows holiday pay to be included in an employee's regular pay where the employment is on a genuine casual or irregular basis. The 8% rate represents 4 weeks of annual leave expressed as a percentage of annual earnings. Casual employees should clearly see the holiday pay component itemised on their payslip. the 8% must be calculated on total gross earnings, including any overtime, allowances, and other payments, not just the base hourly rate. The 8% holiday pay arrangement does not apply to permanent part-time or full-time employees, who must accrue annual leave in the normal way under section 16 of the Holidays Act 2003.
Casual employees in New Zealand can be entitled to public holiday benefits under the Holidays Act 2003, but the rules are more complex than for permanent employees. The key question is whether the public holiday falls on a day that would 'otherwise be a working day' for the employee. For a casual employee, this is determined by looking at the employee's actual pattern of engagements — if the employee regularly worked on that day of the week in the period before the public holiday, then the public holiday is likely to be an 'otherwise working day' and the employee has public holiday rights. If the employee worked on a public holiday, they are entitled to time-and-a-half for the hours worked and an alternative holiday (a 'day in lieu'). If the employee was not rostered to work on the public holiday but it would otherwise have been a working day, the employee is entitled to be paid for the holiday at their ordinary rate. Employers should assess each public holiday by reference to the employee's recent work pattern.
Yes. Casual employees in New Zealand have access to the personal grievance process under the Employment Relations Act 2000, in the same way as permanent employees. If a casual employee believes they have been unjustifiably dismissed, unjustifiably disadvantaged, discriminated against, sexually or racially harassed, or subjected to duress relating to union membership, they may raise a personal grievance under section 103 of the ERA. The employee must raise the personal grievance within 90 days of the date on which the action alleged to amount to a personal grievance occurred, as required by section 114 of the ERA. For sexual harassment claims, the time limit is 12 months. The casual nature of the employment does not limit access to the personal grievance process. However, the fact that there is no guaranteed right to ongoing work means that an employer's decision not to offer further shifts will typically not, by itself, constitute an unjustified dismissal — unless the Employment Relations Authority finds that the employment relationship had become ongoing and permanent in nature.
Yes. KiwiSaver obligations under the KiwiSaver Act 2006 apply to casual employees in New Zealand. Employers must make compulsory contributions of at least 3% of the employee's gross wages (excluding the 8% holiday pay component) for all employees who are enrolled in KiwiSaver, regardless of whether the employee works on a casual or permanent basis. There is no minimum hours or earnings threshold for KiwiSaver entitlement. New casual employees aged 18 to 64 who are NZ citizens or permanent residents are automatically enrolled in KiwiSaver when they start a new engagement, unless they are already a member or opt out within the prescribed period. Casual employees who are automatically enrolled can opt out within a prescribed period (typically 2 to 8 weeks) if they do not wish to remain in KiwiSaver. Employers should require that KiwiSaver deductions and contributions are made for each casual employee who is enrolled, even if they work only occasionally.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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