Is a written employment agreement mandatory?

Yes. Section 65 of the Employment Relations Act 2000 requires every employee to have a written individual employment agreement (or be covered by a collective agreement). Failure to have one is a breach that can lead to penalties of up to $10,000 per breach for an individual and $20,000 for a body corporate.

Can I use a 90-day trial period?

Only if you have fewer than 20 employees at the time the employee starts. The clause must be agreed in writing before work commences and must strictly comply with section 67A. Larger employers can use a probation period instead, which allows dismissal but requires a fair process.

What is the minimum wage in New Zealand?

Minimum wage rates are set by the Minimum Wage Act 1983 and updated annually. Employers must pay at least the adult, starting-out, or training minimum wage rate depending on the employee’s circumstances, and never less than the hourly rate for all hours actually worked.

How much leave does an employee get?

Under the Holidays Act 2003: four weeks’ annual holidays after 12 months’ service, 11 public holidays per year, up to 10 days’ sick leave per 12-month period (after six months), and three days’ bereavement leave per qualifying event. KiwiSaver contributions are also compulsory unless opted out.

Can I include a restraint of trade?

Yes, but only to protect a legitimate proprietary interest (e.g. confidential information, client relationships) and only to the extent that is reasonable in scope, geography, and duration. Unreasonable restraints can be severed or modified by the court under section 83 of the Contract and Commercial Law Act 2017.

How do I end an employment agreement?

Either party can give notice per the agreement. The employer can also dismiss for serious misconduct or for performance or other issues, but must follow a fair and reasonable process (section 103A). Incorrect process is a common source of unjustified dismissal grievances.

Does the agreement need witnesses?

No. The signatures of the employer and employee are sufficient. Electronic signatures are valid under Part 4 of the Contract and Commercial Law Act 2017.

EmploymentNZ

Individual Employment Agreement Template

Every New Zealand employee must have a written individual employment agreement (IEA). Use our free template to meet the mandatory requirements of the Employment Relations Act 2000, Holidays Act 2003, and the Wages Protection Act 1983.

Create Your Individual Employment Agreement

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INDIVIDUAL EMPLOYMENT AGREEMENT

EMPLOYER

Southern Cross Hospitality Ltd.

78 Victoria Street, Christchurch Central, Canterbury 8013

By: Aroha Te Kani, General Manager

EMPLOYEE

William J. Morrison

14 Fitzgerald Avenue, Christchurch 8011

Start Date: 1 May 2026

Senior Marketing Manager · Permanent

This Individual Employment Agreement (this "Agreement") is entered into between Southern Cross Hospitality Ltd. ("Employer") and William J. Morrison ("Employee") pursuant to the Employment Relations Act 2000 (ERA 2000) and the Holidays Act 2003 (HA 2003). The Employee has been advised of the right to seek independent advice before signing this Agreement and has been given a reasonable opportunity to do so.

POSITION AND DUTIES

The Employee is employed as Senior Marketing Manager in the Marketing and Communications department. The Employee agrees to perform the duties and responsibilities associated with that position and such other reasonable duties as the Employer may from time to time direct, consistent with the Employee's skills and experience. The Employee shall devote their full working time and attention to the performance of duties unless otherwise agreed in writing. The position is based at Christchurch, Canterbury (ERA 2000, s 65(2)(a)).

TYPE AND COMMENCEMENT OF EMPLOYMENT

This is a permanent employment agreement commencing on 1 May 2026.

HOURS OF WORK

The Employee's ordinary hours of work are 40 hours per week, with the specific days and times to be agreed with the Employer. The Employer may require the Employee to work additional hours where reasonable and necessary for the performance of their duties, subject to the Holidays Act 2003 (HA 2003) and the Minimum Wage Act 1983 (MWA 1983, s 6) requirements.

REMUNERATION

The Employee will be paid a salary of $95,000.00 NZD per annum, payable fortnightly by direct credit to the Employee's nominated bank account. The remuneration shall be reviewed annually at the Employer's discretion. This rate meets or exceeds the minimum wage as prescribed under the Minimum Wage Act 1983 (MWA 1983). All payments are subject to deduction of PAYE and other lawful deductions.

LEAVE ENTITLEMENTS

The Employee is entitled to leave in accordance with the Holidays Act 2003 (HA 2003): (a) Annual Leave: 4 weeks' paid annual leave per year, accruing from the commencement date (HA 2003, s 16); (b) Sick Leave: 10 days' sick leave per year after six months' continuous employment (HA 2003, s 63), carrying over unused leave to a maximum of 20 days; (c) Public Holidays: All public holidays as gazetted in New Zealand, paid in accordance with HA 2003, s 44–50; (d) Bereavement Leave: As per HA 2003, s 69A — 3 days for immediate family, 1 day for any other person. All leave is subject to the provisions of the Holidays Act 2003.

KIWISAVER

The Employee is eligible for KiwiSaver membership under the KiwiSaver Act 2006. If the Employee is auto-enrolled and does not opt out within the permitted timeframe, the Employer will make compulsory employer contributions at the applicable statutory rate. The Employee's contributions will be deducted from remuneration at the rate elected by the Employee. Both parties' rights and obligations regarding KiwiSaver are as set out in the KiwiSaver Act 2006.

NOTICE OF TERMINATION

Either party may terminate this Agreement by giving 4 weeks written notice to the other. The Employer may, at its discretion, elect to make payment in lieu of notice. Summary dismissal without notice is permitted only in cases of serious misconduct as defined by applicable New Zealand employment law (ERA 2000, s 103A — test for justification of dismissal).

GOOD FAITH

The parties are required to deal with each other in good faith in accordance with the Employment Relations Act 2000 (ERA 2000, ss 4–6). This requires each party to be active and constructive in maintaining a productive employment relationship, to be responsive and communicative, and not to act in a misleading or deceptive manner. The Employer agrees to provide the Employee with information relevant to their continued employment and an opportunity to be heard before making decisions that affect employment.

PERSONAL GRIEVANCE

The Employee has the right to raise a personal grievance under the Employment Relations Act 2000 (ERA 2000, ss 103–112). A personal grievance must generally be raised with the Employer within 90 days of the action giving rise to the grievance (ERA 2000, s 114). Disputes will be resolved in accordance with the dispute resolution procedure in this Agreement and, if not resolved, may be referred to Mediation Services (Employment New Zealand) and thereafter the Employment Relations Authority (ERA 2000, s 157).

10.

INTELLECTUAL PROPERTY

All inventions, discoveries, developments, improvements, software, designs, methods, processes, and other work product created, developed, or conceived by the Employee during employment (whether or not during working hours, and whether or not using the Employer's resources) that relate to the Employer's business, actual or reasonably anticipated research or development, or result from tasks assigned by the Employer, are the exclusive property of the Employer. The Employee irrevocably assigns all such intellectual property rights to the Employer, including all rights under the Patents Act 2013 and the Copyright Act 1994. The Employee shall promptly disclose all such work product to the Employer and execute all documents reasonably necessary to give effect to this assignment.

11.

CONFIDENTIALITY

The Employee acknowledges that in the course of employment they will have access to Confidential Information of the Employer, including trade secrets, client lists, pricing, financial data, proprietary methods, and strategic plans. The Employee agrees to keep all such information strictly confidential both during and after employment. Disclosure to unauthorised persons is prohibited. This obligation survives termination of this Agreement and is subject to the protections of the Privacy Act 2020 (PA 2020). The Employee may disclose information required by law, provided prompt written notice is given to the Employer.

12.

DISPUTE RESOLUTION

Any dispute arising out of or in connection with this Agreement shall first be referred to mediation through Employment New Zealand Mediation Services (ERA 2000, ss 144–156). If mediation does not resolve the dispute within 28 days of referral, either party may refer the matter to the Employment Relations Authority (ERA 2000, s 157).

13.

GOVERNING LAW

This Agreement is governed by the laws of New Zealand, including the Employment Relations Act 2000, the Holidays Act 2003, the Minimum Wage Act 1983, the KiwiSaver Act 2006, and the Privacy Act 2020. Any dispute not resolved by internal procedures shall be referred to the Employment Relations Authority.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.

EMPLOYER

Aroha Te Kani

General Manager

Southern Cross Hospitality Ltd.

Date: ____________________

EMPLOYEE

William J. Morrison

Date: ____________________

What Is an Employment Agreement?

An individual employment agreement (IEA) is the written contract that governs the employment relationship between an employer and an employee in New Zealand. Section 65 of the Employment Relations Act 2000 requires every employee to have a written agreement, and section 63A requires the employer to provide a draft, give the employee a reasonable opportunity to seek independent advice, and respond to any issues raised — before the agreement is signed.

The Employment Relations Act 2000 prescribes the mandatory content of an IEA in sections 65(2) and 54A, including the names of the parties, a description of the work, the place of work, hours of work, remuneration (wages or salary), and clear plain-language provisions on how to resolve employment problems. The employer must also retain a signed copy or intended-signature copy and provide a copy to the employee on request.

Beyond the statutory minimum, a well-drafted IEA should address trial periods (where eligible), probation, duties of good faith, confidentiality, intellectual property, leave entitlements aligned with the Holidays Act 2003, termination (including notice, suspension, and misconduct procedures), and restraint of trade. Getting this right from day one avoids personal grievances and costly disputes later.

What's Covered in This Template

Our employment agreement template captures every statutorily required clause plus the clauses most New Zealand employers also need.

Parties and Commencement

Employer (including NZBN) and employee names, start date, and location of work.

Position and Duties

Job title, reporting line, and a summary of key duties and responsibilities.

Hours of Work

Agreed ordinary hours, days of work, and availability provisions under section 67C.

Wages or Salary

Rate of pay, payment frequency, and confirmation that wages comply with the Minimum Wage Act 1983.

Trial or Probation Period

Section 67A trial period (employers with fewer than 20 employees) or a standard probation period.

Annual and Public Holidays

Four weeks’ annual holidays, 11 public holidays, and the calculations required by the Holidays Act 2003.

Sick Leave and Bereavement Leave

10 days’ sick leave per year and three days’ bereavement leave per qualifying event.

Good Faith and Conduct

Mutual duty of good faith under section 4 and the employer’s policies and standards.

Confidentiality and IP

Protection of confidential information and assignment of work-related intellectual property.

Restraint of Trade

Reasonable non-compete and non-solicitation restrictions, applied only where justified.

Termination and Notice

Notice periods, summary dismissal for serious misconduct, and fair process obligations.

Problem Resolution

Plain-language explanation of how to raise a personal grievance under section 103 (90-day rule).

How to Create an Employment Agreement

Generate a compliant New Zealand employment agreement in minutes with our step-by-step form.

1
Enter Employer and Employee Details
Provide the employer’s legal name and NZBN, the employee’s name, start date, and location.
2
Set Position, Hours, and Pay
Define the role, ordinary hours, rate of pay, and payment frequency (weekly, fortnightly, monthly).
3
Configure Trial or Probation
Choose a section 67A trial period (if fewer than 20 employees) or a probation period.
4
Confirm Leave and Benefits
Confirm annual leave, sick leave, bereavement leave, and any additional employer benefits.
5
Review and Provide for Signature
Review termination, confidentiality, and restraint clauses, then download for the employee to consider before signing.

Legal Considerations

Employment law in New Zealand is tightly regulated, and mistakes at the agreement stage can be expensive.

This template is for informational purposes only and does not constitute legal advice. For senior roles, unusual pay structures, or restrictive covenants, take advice from a New Zealand employment lawyer.

Reviewed for New Zealand law

Section 63A Pre-Employment Process

Before signing, section 63A requires the employer to: (a) provide the employee with a copy of the intended agreement; (b) advise the employee that they are entitled to seek independent advice; (c) give a reasonable opportunity to seek that advice; and (d) consider and respond to issues raised. Breach of section 63A is itself a breach of the duty of good faith and can ground a personal grievance.

Trial Periods under Section 67A

Only employers with fewer than 20 employees at the start of the employee’s first day can include a section 67A trial period of up to 90 days. The clause must be in writing, agreed before the employee starts work, and strictly compliant with section 67A and 67B. A defective trial period is unenforceable and dismissal under it can lead to a personal grievance.

Holidays Act 2003 Compliance

The Holidays Act 2003 entitles every employee to four weeks’ paid annual holidays after 12 months’ service, 11 public holidays, up to 10 days’ sick leave per year (from the first day of employment where eligible), and three days’ bereavement leave. Pay must be calculated on the greater of ordinary weekly pay and average weekly earnings. Many NZ employers have been caught by incorrect Holidays Act calculations; our template uses statutorily compliant language.

Personal Grievances

An employee can bring a personal grievance under section 103 for unjustified dismissal, unjustified action, discrimination, harassment, or duress. The claim must generally be raised with the employer within 90 days (24 months for some sexual harassment claims). The agreement must explain this in plain language, and the Ministry of Business, Innovation and Employment publishes approved wording employers can adapt.

Frequently Asked Questions

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