Employment Relations Act 2000 — Section 65
Employment agreements in New Zealand — what must be included
Every employee must have a written employment agreement. Here's what must be in it, what types of agreements exist, and how to vary an agreement lawfully.
📋 Employment Relations Act 2000, Section 65 — mandatory written agreement
Written agreement is mandatory
Every employee must have one
All employees must have a written employment agreement. There are no exceptions — not for casual employees, part-timers, or family members. Failing to provide a written agreement is a breach of the Employment Relations Act and can result in a penalty of up to $10,000.
Mandatory content (Section 65)
Every employment agreement must include:
- The names of the employer and employee
- A description of the work to be performed
- An indication of where the work is to be performed
- The agreed hours — or an indication of the arrangements relating to hours
- The wage or salary payable
- A plain language explanation of the services available for resolving employment relationship problems — including a reference to mediation and the ERA
Types of employment agreements
Individual Employment Agreement (IEA)
The most common type. Negotiated between the employer and a specific employee. Must be provided before the employee starts and the employee must have a reasonable opportunity to seek advice.
Collective Employment Agreement (CEA)
Negotiated between an employer and a union, covering all employees who are union members in the relevant work group. Non-union employees can be employed on terms at least as favourable.
Fixed-term and casual agreements
Specific requirements
Fixed-term: the agreement must state the genuine reason for the fixed term and the date or event when it ends. You cannot use a series of fixed-term agreements to avoid permanent employment obligations without a genuine reason for each term.
Casual: the agreement must reflect the genuinely casual nature of the work — intermittent, irregular hours, no obligation on either side to offer or accept work. True casuals may still accumulate entitlements.
Good faith in bargaining
Both parties must bargain in good faith
The Employment Relations Act requires both employers and employees to bargain in good faith when negotiating or varying an employment agreement. This means: being active and constructive, being responsive and communicative, being honest, and not acting in a misleading or deceptive way.
Varying an employment agreement
Must be agreed by both parties
An employer cannot unilaterally change the terms of an employment agreement — for example, reducing pay, changing hours, or altering job duties — without the employee's agreement. Unilateral variation is a breach of good faith and may result in a personal grievance.
Source: Employment Relations Act 2000, Section 65. Employment NZ agreement builder:
employment.govt.nz. This is general information, not legal advice.
Frequently asked questions
Can we use a standard agreement template?
Yes — Employment NZ provides a free employment agreement builder at employment.govt.nz. However, any template must be adapted to accurately reflect the actual terms and conditions of the particular role.
What happens if an employee starts work without signing an agreement?
The employer is still bound to provide one. The employee must be given a reasonable opportunity to seek independent advice before signing. Starting work doesn't waive the employer's obligation to provide a written agreement.
Can we include a restraint of trade clause?
Yes, but restraints of trade must be reasonable in scope, duration, and geographic area to be enforceable. Courts interpret them narrowly — an overly broad restraint may be unenforceable or partially enforced.
Do we need to give employees a copy of their agreement?
Yes. The employer must retain a signed copy and give the employee a signed copy. The employee can request a copy at any time.