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Employment Contracts 101

8 min read Updated October 2025

Every employee in New Zealand must have a written employment agreement. This guide explains what must be included and how to create compliant contracts for casual staff.

Why You Need a Contract

Employment agreements are legally required in NZ and must be:

  • In writing
  • Signed before work begins
  • Clearly written in plain language
  • Include all mandatory clauses

Mandatory Clauses

All employment agreements must include:

  • Names of employer and employee
  • Job description and duties
  • Location of work
  • Hours of work (or "casual/variable" for casual staff)
  • Wages or salary
  • How and when wages are paid
  • Leave entitlements
  • Notice period for ending employment
  • Protection against discrimination
  • Employment relationship problem resolution

Optional Clauses

You may also want to include:

  • Confidentiality agreements
  • Intellectual property ownership
  • Non-compete clauses (must be reasonable)
  • Health and safety responsibilities
  • Dress code or uniform requirements

90-Day Trial Periods

Businesses with fewer than 20 employees can include a 90-day trial period. During this time:

  • Employee can be dismissed without personal grievance claims
  • Must be clearly stated in the contract before work starts
  • Employee still entitled to wages, holidays, and other entitlements
  • Cannot be used if employee has worked for you before
Important: Trial periods must be in writing and signed before the first day of work. They cannot be added afterwards.
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