Individual Employment Agreement (New Zealand) (Contracts)
Employment Relations Act 2000 — s65 Mandatory Written 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] [Employee Postcode] (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 responsive, communicative, and not deceptive or misleading.
1.2 The duty of good faith applies to all aspects of the employment relationship, including 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.
2.4 The Employee acknowledges that this Agreement was provided to them before they commenced work, and that they have had the opportunity to seek independent legal advice before signing it, as required by section 63A of the ERA.
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, 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 and abilities to the proper performance of their duties during working hours, unless otherwise agreed in writing.
4. HOURS OF WORK
4.1 The Employee’s ordinary hours of work are [Ordinary Hours], or as otherwise agreed in writing.
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.
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 2-hour continuous work period, and an unpaid 30-minute meal break for each 4-hour continuous work period, 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 periodically. Any adjustment will be at the Employer’s discretion, provided remuneration continues to meet or exceed the applicable minimum wage.
6. KIWISAVER
6.1 If the Employee is enrolled in 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. The minimum employer contribution rate is 3%.
6.2 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 already a member or the Employee opts out within the prescribed period.
6.3 Employee contributions will be deducted from gross pay at the rate elected by the Employee (3%, 4%, 6%, 8%, or 10%).
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 commencement. [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. [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 for the death of a close family member (spouse, partner, parent, child, sibling, grandparent, grandchild, or spouse’s/partner’s parent); and 1 day for 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 applicable regional anniversary days) that would otherwise be a working day. If required to work on a public holiday, the Employee is entitled to time-and-a-half pay and an alternative holiday.
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 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 from the first day of employment, in accordance with sections 72A–72H of the Holidays Act 2003 (as inserted by the Domestic Violence — Victims’ Protection Act 2018). This leave 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 for compensatory damages against the Employer in respect of any personal injury covered by the ACC scheme.
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 the Employee while at work.
9.2 The Employee must: (a) take reasonable care for their own health and safety; (b) take reasonable care that their acts or omissions do not adversely affect the health and safety of others; (c) comply with any reasonable instruction given by the Employer under the HSWA; and (d) cooperate with the Employer’s health and safety policies.
9.3 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 employment, the Employee must not disclose to any person or entity any Confidential Information belonging to the Employer without 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 obligation of confidentiality continues for [Confidentiality Period] after the termination of employment for any reason.
10.4 The obligation does not apply to information that: (a) is or becomes publicly available through no fault of the Employee; (b) was already known to the Employee before commencement; (c) is required to be disclosed by law or court order; or (d) is disclosed with the Employer’s prior written consent.
11. TERMINATION
11.1 Either party may terminate this Agreement by providing written notice:
- 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 in the event of serious misconduct, including but not limited to: theft, fraud, assault, serious breach of workplace policy, or wilful damage to the Employer’s property.
11.3 Before any decision to dismiss the Employee (outside a valid trial period), the Employer will follow a fair and reasonable process consistent with the good faith obligations in section 4 of the ERA, including: (a) advising the Employee of concerns; (b) providing a reasonable opportunity to respond; (c) genuinely considering the response; and (d) informing the Employee of the decision and reasons.
11.4 On termination, the Employee must return all property belonging to the Employer, including keys, devices, documents, and any copies of Confidential Information.
12. EMPLOYMENT RELATIONSHIP PROBLEMS
12.1 If the Employee has a problem with their employment, they should raise the matter with the Employer in the first instance. The Parties will seek to resolve problems informally wherever possible.
12.2 The following services are available 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 binding determination.
- 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 for unjustified dismissal, unjustified disadvantage, discrimination, sexual or racial harassment, or duress relating to union membership. The Employee must raise a personal grievance within 90 days of the relevant action (section 114 ERA). For sexual harassment, the time limit is 12 months. Since 21 February 2026, employees earning $200,000 or more per year under a new employment agreement cannot raise a personal grievance for unjustified dismissal, but all other types remain available.
13. GENERAL PROVISIONS
13.1 Workplace Policies: The Employee must comply with all reasonable workplace policies and codes of conduct implemented by the Employer from time to time. 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.
13.3 Entire Agreement: This Agreement (together with any attached schedules and position description) constitutes the entire agreement between the Parties and supersedes all prior representations 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 to be invalid or unenforceable, that provision is severed. The remaining provisions continue in full force.
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, and the Minimum Wage Act 1983. 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 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] [Employee Postcode]
Employer
________________
Signature
Employee
________________
Signature
What Is a Individual Employment Agreement (New Zealand) (Contracts)?
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.
New Zealand's employment law is built on the foundation of the Employment Relations Act 2000, which replaced the Employment Contracts Act 1991. The ERA introduced a fundamentally different approach to employment law, moving from a contracts-based framework to one centred on the relationship between employer and employee. The centrepiece of this approach is the duty of good faith under section 4 of the ERA, which requires both parties to be active and constructive in establishing and maintaining a productive employment relationship, to be responsive and communicative, and not to act in a way that is deceptive or misleading. This duty of good faith permeates every aspect of the employment relationship and is reflected throughout the IEA.
Section 65(2) of the ERA sets out the minimum content requirements for every individual employment agreement. The agreement must include: the names of the employer and employee (s65(2)(a)(i)); a description of the work to be performed (s65(2)(a)(ii)); an indication of where the work will be performed (s65(2)(a)(iii)); the agreed hours of work (s65(2)(a)(iv)); the wages or salary payable (s65(2)(a)(v)); 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 (s65(2)(a)(vi)). Any employment agreement that omits any of these mandatory elements is incomplete and may expose the employer to penalties of up to $20,000 per breach.
Beyond the mandatory content, a well-drafted IEA will address KiwiSaver contributions under the KiwiSaver Act 2006, leave entitlements under the Holidays Act 2003, health and safety obligations under the Health and Safety at Work Act 2015, and the ACC scheme under the Accident Compensation Act 2001. New Zealand's ACC scheme is unique — it provides universal no-fault personal injury cover to all workers, replacing common law personal injury claims and meaning that employees cannot sue employers for compensatory damages for personal injury by accident. Privacy obligations under the Privacy Act 2020 also apply to how employers handle employee personal information.
The 2026 amendments to the ERA introduced a new provision affecting high-earning employees: those earning $200,000 or more per year under a new employment agreement entered into on or after 21 February 2026 cannot raise a personal grievance for unjustified dismissal. This significant change means that for the highest-earning employees on new agreements, the employment relationship more closely resembles the position in many other common law jurisdictions where no-fault dismissal protection is limited. All other personal grievance rights (unjustified disadvantage, discrimination, harassment, duress relating to union membership) remain fully available to employees at all income levels.
When Do You Need a Individual Employment Agreement (New Zealand) (Contracts)?
A written Individual Employment Agreement is required every time a New Zealand employer takes on a new employee. Section 65 of the ERA makes written employment agreements mandatory — there is no exception for short-term, casual, or part-time workers. Since May 2024, section 64A requires the employer to provide the written agreement before the employee starts work, not merely at the commencement of or during employment.
The first and most fundamental reason to use this agreement is legal compliance. An employer who fails to have a written employment agreement with each employee commits a breach of the ERA. The Employment Relations Authority has the power to impose penalties of up to $20,000 on the employer. Beyond the penalty risk, the absence of a written agreement creates significant practical difficulties: without a written record of the agreed terms, the employer and employee may have different understandings of key matters such as hours, pay, duties, and notice periods. When disputes arise — and in employment relationships, disputes do arise — a clear written agreement is the primary document that the Employment Relations Authority or Employment Court will look to for guidance.
A written agreement is also essential if the employer wishes to include a 90-day trial period under section 67A of the ERA. Since December 2023, trial periods are available to all employers in New Zealand. However, the trial period 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 clause is invalid and the employee has the full right to bring a personal grievance for unjustified dismissal from the first day of employment. A properly drafted IEA protects both parties by clearly documenting the trial period terms, including the specific duration and the notice required for dismissal during the trial.
Restrain of trade clauses, which restrict employees from competing with the employer or soliciting clients after leaving, are only enforceable if they are in writing and reasonable in scope. Similarly, confidentiality obligations — while sometimes implied at common law — are far more effectively enforced through clear written terms. Intellectual property assignment clauses, which vest ownership of work-created IP in the employer rather than the employee, also require clear written terms to be effective.
For employers with KiwiSaver obligations under the KiwiSaver Act 2006, the IEA is the appropriate place to specify the employer's contribution rate and acknowledge the automatic enrolment provisions. This creates clarity for both parties about the KiwiSaver arrangements from the outset of employment and avoids disputes about employer contributions later.
What to Include in Your Individual Employment Agreement (New Zealand) (Contracts)
A compliant Individual Employment Agreement for New Zealand under section 65 of the Employment Relations Act 2000 must address the following key elements.
The good faith clause acknowledges the duty of good faith under section 4 of the ERA, which requires both parties to be active and constructive in maintaining a productive employment relationship and to be responsive, communicative, and not deceptive or misleading.
The parties and commencement section identifies the employer and employee by their full legal names and addresses (s65(2)(a)(i) ERA). The employer's NZBN should be included for precise identification. The commencement date establishes the start of the employment relationship and triggers the employee's leave accruals.
The position, duties and place of work clause describes the work to be performed and indicates where the employee will work, satisfying sections 65(2)(a)(ii) and (iii) of the ERA.
The hours of work clause must specify the agreed ordinary hours, as required by section 65(2)(a)(iv) of the ERA. Rest breaks (10 minutes per 2-hour period) and meal breaks (30 minutes per 4-hour period) must be provided as required by the ERA.
The remuneration clause states the wages or salary payable (s65(2)(a)(v) ERA). The amount must meet or exceed the adult minimum wage under the Minimum Wage Act 1983. Pay frequency and method should be specified.
The KiwiSaver clause specifies the employer's contribution rate (minimum 3% under the KiwiSaver Act 2006), acknowledges automatic enrolment provisions, and refers to employee contribution rate options (3%, 4%, 6%, 8%, or 10%).
The leave entitlements section reflects the statutory minimums under the Holidays Act 2003: 4 weeks annual leave, 10 days sick leave, bereavement leave, 11 public holidays, 10 days family violence leave, and parental leave under the Parental Leave and Employment Protection Act 1987.
The trial period clause (if included) must comply with section 67A of the ERA: written, agreed before commencement, applicable to a new employee who has not previously been employed by the same employer.
The employment relationship problem resolution clause is mandatory under section 65(2)(a)(vi) ERA. It must include a plain language explanation of the mediation, Employment Relations Authority, and Employment Court pathway, and the 90-day time limit for raising personal grievances (and the 2026 $200,000 threshold for unjustified dismissal claims).
The ACC clause acknowledges the Accident Compensation Act 2001, including the no-fault coverage and the bar on personal injury damages claims against the employer.
The health and safety clause acknowledges the employer's duties as a PCBU under the Health and Safety at Work Act 2015 and the employee's duties to take reasonable care.
Confidentiality and restraint of trade clauses (if included) protect the employer's legitimate business interests, subject to the reasonableness requirements of New Zealand common law.
The governing law clause confirms that New Zealand law governs the agreement, referencing the ERA 2000, the Holidays Act 2003, the HSWA 2015, the KiwiSaver Act 2006, the ACC Act 2001, the Privacy Act 2020, and the Minimum Wage Act 1983. 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) (Contracts) (New Zealand) [Legal document template]. Forms Legal. https://forms-legal.com/new-zealand/employment/contracts/individual-employment-agreement-new-zealand
"Individual Employment Agreement (New Zealand) (Contracts) (New Zealand)." Forms Legal, 2026, https://forms-legal.com/new-zealand/employment/contracts/individual-employment-agreement-new-zealand.
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author = {{Forms Legal}},
title = {Individual Employment Agreement (New Zealand) (Contracts) (New Zealand)},
year = {2026},
howpublished = {\url{https://forms-legal.com/new-zealand/employment/contracts/individual-employment-agreement-new-zealand}},
note = {Free legal document template. Based on Employment Relations Act 2000}
}Frequently Asked Questions
Section 65(2) of the Employment Relations Act 2000 specifies the mandatory content of every Individual Employment Agreement (IEA) in New Zealand. The agreement must contain: (a)(i) the names of the employer and employee; (a)(ii) a description of the work to be performed by the employee; (a)(iii) an indication of where the employee is to perform the work; (a)(iv) the agreed hours or, if that is not possible, an indication of the arrangements relating to hours; (a)(v) the wage or salary payable; and (a)(vi) 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 (section 114). In addition, since section 64A came into force in May 2024, employers must provide the IEA to the employee before the employee starts work. Failure to provide a written employment agreement is a breach of the ERA and can result in penalties of up to $20,000 imposed by the Employment Relations Authority.
The duty of good faith under section 4 of the Employment Relations Act 2000 is one of the most important features of New Zealand employment law. It imposes an obligation on both employers and employees to be active and constructive in maintaining a productive employment relationship. The duty requires the parties to be responsive and communicative, and not to act in a way that is misleading or deceptive. In practice, this means employers must: genuinely consider employees' views before making decisions that affect them; keep employees informed about matters that may affect their employment; follow fair processes before dismissal or disadvantage; and not present "done deals" to employees when consultation is required. Employees similarly must be honest and communicative with their employer. The good faith duty applies throughout the employment relationship — from the negotiation of the employment agreement through to the final day of work — and is reflected in virtually every aspect of New Zealand employment law, including the personal grievance process, restructuring processes, and disciplinary procedures.
The Holidays Act 2003 establishes minimum leave entitlements for all employees in New Zealand that cannot be reduced by agreement. After 12 months of continuous employment, employees are entitled to 4 weeks (20 working days) of paid annual leave per year (section 16). After 6 months, employees are entitled to 10 days of paid sick leave per year, with unused leave carrying over up to a maximum of 20 days (section 65). Bereavement leave provides 3 days for the death of a close family member and 1 day for others where the employer accepts a bereavement has occurred (sections 69–70). Employees receive a paid day off on each of the 11 recognised public holidays that falls on a day they would otherwise work, with time-and-a-half and an alternative holiday if required to work. Since 2019, employees have been entitled to 10 days of paid family violence leave per year from their first day of employment (sections 72A–72H, inserted by the Domestic Violence — Victims' Protection Act 2018). Parental leave entitlements are governed separately by the Parental Leave and Employment Protection Act 1987.
The Employment Relations Amendment Act 2026, which came into force on 21 February 2026, introduced a significant change to personal grievance rights for high-earning employees. For new employment agreements entered into on or after 21 February 2026, employees whose annual remuneration is $200,000 or more cannot raise a personal grievance for unjustified dismissal. This means high-earning employees on new agreements lose one of the key protections previously available to all employees under section 103 of the ERA. However, all other types of personal grievance remain available — including unjustified disadvantage, discrimination, sexual harassment, racial harassment, and duress relating to union membership. The change only applies to new employment agreements (not existing ones), and only for unjustified dismissal claims. Employees earning below $200,000 are unaffected. Additionally, the 90-day trial period under section 67A remains fully operative for all employers and all salary levels — the $200,000 threshold operates as a separate, ongoing restriction rather than a fixed trial window.
Restraint of trade clauses in New Zealand employment agreements can be enforceable, but they are subject to a strict reasonableness test applied by New Zealand courts. The courts will only enforce a restraint that: (a) protects a legitimate proprietary interest of the employer, such as confidential information, trade secrets, or established customer relationships; (b) is reasonable in its geographic scope; (c) is reasonable in its duration; and (d) is no wider than is reasonably necessary to protect the identified interest. Restraints that are too broad in area (e.g., nationwide when the employee only worked in one city) or too long in duration (e.g., 5 years when 6 months would suffice) are likely to be either struck down entirely or 'read down' by a court to the extent necessary to make them reasonable. Courts are also reluctant to enforce restraints where the employer did not provide adequate consideration — for employees, the commencement of employment is generally sufficient consideration for a restraint included in the initial employment agreement, but restraints added mid-employment may require additional consideration. Short, geographically targeted restraints protecting specific client relationships or genuine trade secrets are more likely to be enforced.
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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