Individual Employment Agreement (New Zealand)
Employment Relations Act 2000 (ERA) — Individual Employment Agreement
This Individual 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 in which they are, among other things, responsive, communicative, and not deceptive or misleading.
1.2 The duty of good faith applies to all aspects of the employment relationship, including but not limited to the negotiation of this Agreement, the performance of duties, and any process that may affect the continuation of the Employee’s employment.
2. COMMENCEMENT AND EMPLOYMENT STATUS
2.1 The Employee’s employment commences on [Commencement Date].
2.2 The Employee is engaged as a [Employment Type] employee of the Employer under this Individual Employment Agreement.
2.3 This Agreement is an Individual Employment Agreement for the purposes of Part 6 of the Employment Relations Act 2000.
3. POSITION, DUTIES AND PLACE OF WORK
3.1 The Employee is engaged in the position of [Job Title], reporting to the [Reports To].
3.2 The Employee’s primary place of work is [Place of Work]. The Employer may, on reasonable notice and after consultation with the Employee, require the Employee to work at other locations as reasonably required by the business.
3.3 The Employee’s key duties and responsibilities include:
[Duties Summary]
3.4 The Employer may, from time to time and after consultation with the Employee, reasonably vary the Employee’s duties and responsibilities, provided such variation does not result in a fundamental change to the nature of the role.
3.5 The Employee must devote their full working time, attention, and abilities to the proper performance of their duties during working hours, unless otherwise agreed in writing with the Employer.
4. HOURS OF WORK
4.1 The Employee’s ordinary hours of work are [Ordinary Hours], or as otherwise agreed in writing between the Parties.
4.2 The Employee’s usual working pattern is [Working Days].
4.3 The Employee may be required to work reasonable additional hours beyond the ordinary hours specified above. Any additional hours will be compensated in accordance with this Agreement or as required by law.
4.4 Rest breaks and meal breaks will be provided in accordance with the Employment Relations Act 2000. The Employee is entitled to a paid 10-minute rest break for each period of 2 continuous hours worked, and an unpaid 30-minute meal break for each period of 4 continuous hours worked, or as otherwise agreed.
5. REMUNERATION
5.1 The Employer will pay the Employee [Salary] (gross, before tax), payable [Pay Frequency] by [Pay Method] in arrears.
5.2 The Employee’s remuneration 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 The Employer will deduct PAYE income tax and any other required statutory deductions (including KiwiSaver contributions, student loan repayments, and child support, where applicable) from the Employee’s gross remuneration in accordance with the Income Tax Act 2007 and related legislation.
5.4 The Employee’s remuneration will be reviewed annually. Any adjustments will be at the Employer’s discretion, provided the remuneration continues to meet or exceed the applicable minimum wage.
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 salary, in accordance with the KiwiSaver Act 2006.
6.2 The minimum employer contribution rate is 3% of the Employee’s gross salary. 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: The Employee is entitled to 4 weeks (20 working days) of paid annual leave per year after 12 months of continuous employment, as prescribed by section 16 of the Holidays Act 2003. Annual leave accrues on a pro rata basis from the date employment commences. [Additional Annual Leave]
7.2 Sick Leave: The Employee is entitled to 10 days of paid sick leave per year after 6 months of continuous employment, as prescribed by section 65 of the Holidays Act 2003. Unused sick leave may be accumulated up to a maximum of 20 days. The Employer may require a medical certificate for absences of 3 or more consecutive calendar days, or where the Employer has reasonable grounds to do so. [Additional Sick Leave]
7.3 Bereavement Leave: The Employee is entitled to bereavement leave in accordance with sections 69 and 70 of the Holidays Act 2003:
- 3 days of paid bereavement leave on the death of a spouse, partner, parent, child, sibling, grandparent, grandchild, or the spouse’s/partner’s parent; and
- 1 day of paid bereavement leave on the death of any other person where the Employer accepts that the Employee has suffered a bereavement.
7.4 Public Holidays: The Employee is entitled to a paid day off on each of the 11 public holidays recognised under section 44 of the Holidays Act 2003 (and any applicable regional anniversary day), provided the day would otherwise be a working day for the Employee. If the Employee is required to work on a public holiday, they are entitled to time-and-a-half pay and an alternative holiday (a “day in lieu”).
7.5 Parental Leave: The Employee is entitled to parental leave in accordance with the Parental Leave and Employment Protection Act 1987, including up to 26 weeks of primary carer leave (with government-funded parental leave payments where eligible) and up to 2 weeks of partner’s leave.
7.6 Family Violence Leave: The Employee is entitled to 10 days of paid family violence leave per year in accordance with sections 72A–72H of the Holidays Act 2003 (as inserted by the Domestic Violence — Victims’ Protection Act 2018). This leave is available from the first day of employment and does not accumulate.
8. ACCIDENT COMPENSATION (ACC)
8.1 The Employee’s entitlements in respect of personal injury are governed by the Accident Compensation Act 2001 (ACC Act). Under the ACC scheme, the Employee is covered for personal injury by accident, regardless of fault.
8.2 The Employee acknowledges that, under the ACC Act, they cannot bring proceedings (including a claim for damages) against the Employer in respect of any personal injury covered by the ACC scheme.
8.3 If the Employee suffers a work-related injury or illness, the Employer will support the Employee’s ACC claim process and comply with the Employer’s obligations under the ACC Act and the Health and Safety at Work Act 2015.
9. HEALTH AND SAFETY
9.1 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, so far as is reasonably practicable, the health and safety of workers while at work, including the provision of a safe working environment, safe plant and structures, adequate facilities, and appropriate training, supervision, and instruction.
9.2 The Employee has the following duties under the HSWA:
- take reasonable care for their own health and safety;
- take reasonable care that their acts or omissions do not adversely affect the health and safety of other persons;
- comply with any reasonable instruction given by the Employer to allow the Employer to comply with the HSWA; and
- cooperate with any reasonable policy or procedure of the Employer relating to health and safety in the workplace.
9.3 The health and safety representative or contact person for the Employer is [Health Safety Contact].
9.4 The Employee has the right to refuse to perform work that they believe would expose them to a serious risk to their health and safety, in accordance with section 83 of the HSWA.
10. CONFIDENTIALITY
10.1 During and after the employment, the Employee must not disclose to any person or entity any Confidential Information belonging to the Employer without the Employer’s prior written consent.
10.2 “Confidential Information” means all non-public information relating to the Employer’s business, including but not limited to: [Confidential Info].
10.3 The Employee’s obligation of confidentiality continues for [Confidentiality Period] after the termination of employment for any reason.
10.4 The obligation of confidentiality does not apply to information that:
- is or becomes publicly available through no fault of the Employee;
- was already known to the Employee before the commencement of employment (and can be evidenced);
- is required to be disclosed by law, court order, or the rules of a regulatory authority; or
- is disclosed with the prior written consent of the Employer.
11. TERMINATION
11.1 Either party may terminate this Agreement by providing written notice as follows:
- Employer to Employee: [Employer Notice Period], or payment in lieu of notice at the Employer’s election.
- Employee to Employer: [Employee Notice Period].
11.2 The Employer may terminate the Employee’s employment without notice (summarily) in the event of serious misconduct, which includes but is not limited to: theft, fraud, assault, intoxication at work, wilful damage to the Employer’s property, or a serious breach of the Employer’s policies.
11.3 Before any decision to dismiss the Employee is made, the Employer will follow a fair and reasonable process, consistent with the good faith obligations in section 4 of the ERA and the principles of natural justice, including:
- advising the Employee of the concerns or allegations;
- providing the Employee with a reasonable opportunity to respond;
- genuinely considering the Employee’s response before making a decision; and
- informing the Employee of the decision and the reasons for it.
11.4 On termination, the Employee must return all property belonging to the Employer, including keys, access cards, electronic devices, documents, and any copies of Confidential Information.
12. EMPLOYMENT RELATIONSHIP PROBLEMS
12.1 If the Employee has a problem with their employment, they are encouraged to raise the matter with the Employer in the first instance so that the matter can be resolved informally wherever possible.
12.2 If the matter cannot be resolved informally, the Employee may access the following services for the resolution of employment relationship problems:
- Mediation: Free mediation services are available through the Ministry of Business, Innovation and Employment (MBIE). Either party may request mediation.
- Employment Relations Authority (ERA): If mediation is unsuccessful, either party may apply to the ERA for a determination. The ERA is an investigative body that can make binding decisions.
- Employment Court: Either party may challenge an ERA determination in the Employment Court.
12.3 Personal Grievance: Under section 103 of the ERA, the Employee may raise a personal grievance where they believe they have been unjustifiably dismissed, unjustifiably disadvantaged, discriminated against, sexually or racially harassed, or subjected to duress in relation to membership or non-membership of a union.
12.4 The Employee must raise a personal grievance within 90 days of the date on which the action alleged to amount to a personal grievance occurred (or came to the attention of the Employee), as required by section 114 of the ERA. For sexual harassment claims, the time limit is 12 months.
13. GENERAL PROVISIONS
13.1 Policies and Procedures: The Employee must comply with all reasonable workplace policies, procedures, and codes of conduct implemented by the Employer from time to time. The Employer will make current policies available to the Employee. Workplace policies do not form part of this Agreement unless expressly incorporated.
13.2 Privacy: The Employer will collect, hold, use, and disclose the Employee’s personal information in accordance with the Privacy Act 2020 and the Information Privacy Principles. The Employee consents to the Employer collecting and holding personal information that is necessary for the administration of the employment relationship.
13.3 Entire Agreement: This Agreement, together with any attached schedules and position description, constitutes the entire agreement between the Parties with respect to the Employee’s employment and supersedes all prior representations, agreements, and understandings.
13.4 Variation: Any variation to this Agreement must be in writing and signed by both Parties, as required by section 65(2)(b) of the ERA.
13.5 Severability: If any provision of this Agreement is found by a court or tribunal to be invalid, illegal, or unenforceable, that provision is severed from the Agreement. The remaining provisions continue in full force and effect.
13.6 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, the Accident Compensation Act 2001, the Privacy Act 2020, the Minimum Wage Act 1983, and all other applicable New Zealand legislation. The Parties submit to the jurisdiction of the Employment Relations Authority, the Employment Court, and the courts of New Zealand sitting in [Governing Region].
IN WITNESS WHEREOF, the Parties have executed this Individual 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 Individual Employment Agreement (New Zealand)?
An Individual 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.
The Employment Relations Act 2000 is the primary legislation governing employment relationships in New Zealand. It replaced the Employment Contracts Act 1991 and introduced a framework based on the principle of good faith. Section 4 of the ERA imposes a statutory duty of good faith on all parties to an employment relationship, requiring them to be active and constructive in maintaining a productive relationship, and to be responsive, communicative, and not deceptive or misleading. This good faith obligation permeates every aspect of the employment relationship, from the negotiation of the agreement through to any process that may affect the continuation of employment.
A well-drafted Individual Employment Agreement serves several critical functions under New Zealand law. First, it satisfies the mandatory statutory requirements of section 65 of the ERA by including all required terms: the names of the parties, a description of the work, the place of work, the hours of work, the wages or salary payable, and a plain language explanation of the services available for resolving employment relationship problems. Second, it documents the agreed terms beyond the statutory minimums, such as KiwiSaver contributions under the KiwiSaver Act 2006, health and safety obligations under the Health and Safety at Work Act 2015 (HSWA), and accident compensation provisions under the Accident Compensation Act 2001. Third, it provides a framework for managing the employment relationship over time, including processes for performance management, disciplinary action, and termination.
New Zealand's employment law framework is distinctive in several important respects. The country operates an accident compensation scheme under the Accident Compensation Act 2001 (ACC Act) that provides no-fault personal injury cover to all New Zealand residents and visitors. In exchange for this universal coverage, individuals — including employees — cannot sue for compensatory damages for personal injury caused by accident. This means employment agreements in New Zealand do not need to address employer liability for workplace injuries in the same way as agreements in other jurisdictions, because the ACC scheme replaces common law personal injury claims. Employers do, however, retain obligations under the Health and Safety at Work Act 2015 to maintain safe workplaces and report notifiable events to WorkSafe New Zealand.
The Holidays Act 2003 establishes minimum leave entitlements that apply to all employees and cannot be reduced by agreement. These include 4 weeks of annual leave after 12 months of continuous employment, 10 days of sick leave per year after 6 months, bereavement leave, public holidays, and family violence leave. The Health and Safety at Work Act 2015 imposes duties on employers as Persons Conducting a Business or Undertaking (PCBUs) to confirm the health and safety of workers so far as is reasonably practicable. The Privacy Act 2020 governs how employers collect, store, use, and disclose employee personal information, requiring compliance with the 13 Information Privacy Principles. These statutory frameworks operate alongside the employment agreement, and any term of the agreement that purports to reduce a statutory entitlement is unenforceable to the extent of the inconsistency.
When Do You Need a Individual Employment Agreement (New Zealand)?
A written Individual Employment Agreement is needed every time an employer in New Zealand engages a new employee. Since 6 May 2024, section 64A of the Employment Relations Act 2000 requires employers to provide a written employment agreement before the employee starts work. This strengthened requirement reflects the fundamental importance that New Zealand law places on written employment agreements as a foundation for fair and productive employment relationships.
The first and most obvious reason a written agreement is needed is legal compliance. Section 65 of the ERA makes it mandatory. An employer who fails to provide a written employment agreement faces a penalty of up to $20,000 per breach, enforceable by the Employment Relations Authority. Beyond the penalty, the absence of a written agreement can create significant practical difficulties for the employer. Without a written record of the agreed terms, disputes about hours, pay, duties, and notice periods become difficult to resolve, and the employer may find that ambiguities are resolved in the employee's favour by the Employment Relations Authority or the Employment Court.
A written agreement is essential if the employer wishes to include a 90-day trial period under section 67A of the ERA. The trial period clause must be included in the written employment agreement and agreed to before the employee starts work. If these conditions are not met, the trial period is invalid and the employee retains the right to bring a personal grievance for unjustified dismissal from the first day of employment. Since December 2023, employers of any size may include trial periods (previously limited to employers with fewer than 20 employees), but the strict procedural requirements remain unchanged.
Certain employment terms are only enforceable if they are in writing. Restraint of trade clauses, which restrict an employee from competing with the employer or soliciting clients after leaving employment, must be in writing and must be reasonable in scope, duration, and geographic area to be enforceable under New Zealand common law. Confidentiality obligations, while sometimes implied at common law, are far more effectively protected through express written terms that clearly define the categories of confidential information and the duration of the obligation. Intellectual property assignment clauses, which vest ownership of work-created IP in the employer, similarly require clear written terms.
The agreement should also address KiwiSaver, New Zealand's work-based retirement savings scheme under the KiwiSaver Act 2006. Employers are required to make compulsory contributions of at least 3% of the employee's gross salary for enrolled employees, and the agreement should specify the contribution rate and acknowledge the automatic enrolment provisions for new employees aged 18 to 64 who are NZ citizens or permanent residents.
A written agreement is also needed to properly document the employer's health and safety obligations under the Health and Safety at Work Act 2015 (HSWA). As a Person Conducting a Business or Undertaking (PCBU), the employer has a primary duty to confirm workers' health and safety so far as is reasonably practicable. The agreement should reference these obligations and the employee's corresponding duties under the HSWA to take reasonable care for their own safety and to cooperate with the employer's health and safety policies.
Finally, a written agreement provides a clear record of the employment relationship for the purposes of the Holidays Act 2003 (leave entitlements), the Minimum Wage Act 1983 (minimum pay requirements), the Accident Compensation Act 2001 (ACC coverage), and the Privacy Act 2020 (handling of employee personal information). Having these obligations documented in writing confirms both parties understand their rights and responsibilities from the outset of the employment relationship.
What to Include in Your Individual Employment Agreement (New Zealand)
A compliant Individual Employment Agreement for New Zealand must address the following key elements, each grounded in specific legislative requirements.
The good faith clause is foundational. Section 4 of the Employment Relations Act 2000 imposes a duty of good faith on all parties to an employment relationship. This duty requires the parties to be active and constructive in establishing and maintaining a productive relationship, to be responsive and communicative, and not to act in a way that is deceptive or misleading. The agreement should expressly acknowledge this duty and its application to all aspects of the employment relationship.
The parties and commencement clause must identify the employer and employee by their full legal names and addresses, as required by section 65(2)(a)(i) of the ERA. The employer's NZBN (New Zealand Business Number) should be included for accurate identification. The commencement date triggers the employee's leave entitlements and establishes the start of the employment relationship.
The position, duties, and place of work clause must describe the work to be performed and indicate where the employee will work, as required by sections 65(2)(a)(ii) and (iii) of the ERA. The description should be sufficiently detailed to provide clarity but flexible enough to allow reasonable variations in duties over time.
The hours of work clause must specify the agreed ordinary hours, as required by section 65(2)(a)(iv) of the ERA. While there is no statutory maximum for ordinary hours in New Zealand (unlike Australia's 38-hour cap), the hours must be reasonable. Rest breaks and meal breaks must be provided in accordance with the ERA.
The remuneration clause must state the wages or salary payable, as required by section 65(2)(a)(v) of the ERA. The remuneration must meet or exceed the adult minimum wage set under the Minimum Wage Act 1983. The agreement should specify the pay frequency and method of payment, and acknowledge the employer's obligation to deduct PAYE, KiwiSaver contributions, and other statutory deductions.
The KiwiSaver clause should specify the employer's contribution rate (minimum 3% under the KiwiSaver Act 2006) and acknowledge the automatic enrolment provisions for new employees aged 18 to 64. Employee contribution rates and the option to opt out should also be referenced.
The leave entitlements section must reflect the statutory minimums under the Holidays Act 2003: 4 weeks annual leave after 12 months (section 16), 10 days sick leave after 6 months (section 65), bereavement leave of 3 days for close family members and 1 day for others (sections 69-70), 11 public holidays plus regional anniversary days (section 44), 10 days family violence leave (sections 72A-72H), and parental leave under the Parental Leave and Employment Protection Act 1987.
The 90-day trial period clause (if included) must comply with the strict requirements of section 67A of the ERA: it must be in a written employment agreement, agreed to before the employee starts work, and apply only to a new employee who has not previously been employed by that employer.
The employment relationship problem resolution clause is mandatory. Section 65(2)(a)(vi) of the ERA requires the agreement to contain a plain language explanation of the services available for resolving employment relationship problems, including a reference to the 90-day time limit for raising a personal grievance under section 114 of the ERA. This clause should explain the mediation, Employment Relations Authority, and Employment Court pathway available to employees.
The health and safety clause should acknowledge the employer's obligations as a PCBU under the Health and Safety at Work Act 2015 and the employee's duties to take reasonable care for their own safety and the safety of others. The agreement should also reference the Accident Compensation Act 2001 and its effect on personal injury claims, confirming both parties understand that the ACC scheme provides no-fault cover and replaces common law damages claims for personal injury by accident. The forms-legal.com Individual 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). Individual Employment Agreement (New Zealand) (New Zealand) [Legal document template]. Forms Legal. https://forms-legal.com/new-zealand/employment/contracts/employment-agreement-new-zealand
"Individual Employment Agreement (New Zealand) (New Zealand)." Forms Legal, 2026, https://forms-legal.com/new-zealand/employment/contracts/employment-agreement-new-zealand.
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author = {{Forms Legal}},
title = {Individual Employment Agreement (New Zealand) (New Zealand)},
year = {2026},
howpublished = {\url{https://forms-legal.com/new-zealand/employment/contracts/employment-agreement-new-zealand}},
note = {Free legal document template. Based on Employment Relations Act 2000}
}Also available for these jurisdictions:
Frequently Asked Questions
Yes. Under section 65 of the Employment Relations Act 2000 (ERA), every employer must have a written employment agreement with each employee, whether an individual employment agreement (IEA) or a collective employment agreement (CEA). The agreement must contain the names of the employer and employee, a description of the work to be performed, an indication of where the employee will work, the agreed hours of work, the wages or salary payable, and a plain language explanation of the services available for resolving employment relationship problems (including the 90-day time limit for raising a personal grievance under section 114 of the ERA). Failing to provide a written employment agreement is a breach of the ERA, and the Employment Relations Authority may impose a penalty of up to $20,000 on the employer. Since 6 May 2024, employers must also comply with section 64A which requires providing a written employment agreement before the employee starts work.
The 90-day trial period is governed by section 67A of the Employment Relations Act 2000. Since December 2023, employers of any size may include a 90-day trial period in a new employee's individual employment agreement. During a valid trial period, the employer may dismiss the employee and the employee cannot raise a personal grievance for unjustified dismissal. For the trial period to be valid, three conditions must be met: (1) the clause must be included in a written employment agreement; (2) the agreement must be signed and the clause agreed to before the employee starts work; and (3) the employee must not have previously been employed by that employer. If any of these conditions are not met, the trial period is invalid and the employee retains the right to raise a personal grievance. Importantly, the trial period only removes the right to bring an unjustified dismissal claim — employees retain all other employment rights during the trial, including the right to raise grievances for discrimination, harassment, or unjustified disadvantage.
The Holidays Act 2003 sets out the minimum leave entitlements for all employees in New Zealand. After 12 months of continuous employment, employees are entitled to at least 4 weeks (20 working days) of paid annual leave per year (section 16). After 6 months of continuous employment, employees are entitled to 10 days of paid sick leave per year, with unused sick leave carrying over up to a maximum of 20 days (section 65). Bereavement leave provides 3 days of paid leave for the death of a close family member (spouse, parent, child, sibling, grandparent, grandchild, or spouse's parent) and 1 day for others where the employer accepts a bereavement has occurred (sections 69–70). Employees are entitled to a paid day off on each of the 11 public holidays recognised under section 44 (plus any applicable regional anniversary day), and if required to work on a public holiday, they receive time-and-a-half pay and an alternative holiday. Since 2019, employees have also been entitled to 10 days of paid family violence leave per year from the first day of employment. Parental leave is governed by the Parental Leave and Employment Protection Act 1987.
KiwiSaver is New Zealand's voluntary, work-based retirement savings scheme established by the KiwiSaver Act 2006. Employers must make compulsory contributions of at least 3% of the employee's gross salary for employees who are enrolled in KiwiSaver. Employees can choose to contribute at rates of 3%, 4%, 6%, 8%, or 10% of their gross pay. New employees aged 18 to 64 who are NZ citizens or permanent residents are automatically enrolled in KiwiSaver when they start a new job, unless they are already a member or opt out within the prescribed period (typically 2 to 8 weeks from starting employment). Employer contributions are subject to employer superannuation contribution tax (ESCT), calculated based on the employee's income. Employment agreements should specify the employer's KiwiSaver contribution rate and acknowledge the automatic enrolment requirements. Unlike Australia's superannuation, KiwiSaver is technically voluntary — employees can opt out — but once enrolled, withdrawal is generally restricted until age 65 (with limited exceptions such as first home purchase, significant financial hardship, or serious illness).
Under section 103 of the Employment Relations Act 2000 (ERA), an employee may raise a personal grievance where they believe they have been unjustifiably dismissed, unjustifiably disadvantaged, discriminated against (on grounds prohibited by the Human Rights Act 1993), sexually or racially harassed, or subjected to duress relating to union membership. The employee must raise the personal grievance with the employer within 90 days of the date on which the action giving rise to the grievance occurred, or came to the notice of the employee (section 114 of the ERA). For sexual harassment claims, the time limit is 12 months. The Employment Relations Authority may grant an extension of time where it considers it is just to do so. The dispute resolution pathway begins with mediation (available free through the Ministry of Business, Innovation and Employment), followed by a determination by the Employment Relations Authority, and if necessary, a challenge to the Employment Court. Since the 2026 Amendment to the ERA, employees earning $200,000 or more per year under a new employment agreement entered into after 21 February 2026 cannot raise a personal grievance for unjustified dismissal, although all other types of personal grievance remain available.
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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